D6) Last year, Vladimir purchased a 10-year $200,000 variable annuity that based its rate of return onthe performance of a segregated fund. The insurance company had estimated that the fund wouldearn a return of 6% in the first year. However, the fund only earned 4.75%. What amount canVladimir expect to receive at the end of each month from the variable annuity during the first year?66a) $791.67b) $2,088.68c) $2,096.95d) $2,220.41

Th amount to be received from the annuity each month depends on interest rate earned by the fund…

purchased a 10-year $200,000 variable annuity that based its rate of return the performance of a segregated fund. The insurance company had estimated that the fund wo earn a return of 6% in the first year. However, the fund only earned 4.75%. What amount can Vladimir expect to receive at the end of each month from the variable annuity during the first y O a) $791.67 O b) $2,088.68 O c) $2,096.95

purchased a 10-year $200,000 variable annuity that based its rate of return the performance of a segregated fund. The insurance company had estimated that the fund wo earn a return of 6% in the first year. However, the fund only earned 4.75%. What amount can Vladimir expect to receive at the end of each month from the variable annuity during the first y O a) $791.67 O b) $2,088.68 O c) $2,096.95

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

See similar textbooks

Similar questions

Bill makes deposits of 2,700 at the end of each year for n years into a fund. At time n, he uses the accumulated value of the fund to purchase an annuity immediate that makes payments of 197,909.20 at the end of each year for 5 years. The annual effective interest rate is 15%. Calculate n. O a. 26 O b. 29 O c. 28 O d. 24 O e. 22
Mrs. Quiton deposited Php 120,000.00 into a college fund at the beginning of every month for 10 years . The fund earns 9% annual interest , compounded monthly . She paid at the end of the month . How much is in the account right after the last deposit ? 1. What is the type of annuity illustrated in the given problem? A. Simple Annuity B. General Annuity C. Deferred Annuity D. Complex Annuity 2. Determine the present value of the deposit. A. Php 12,000.00 B. Php 30,000.00 C. Php 60,000.00 D. Php 75,000.00
Vincent invested his savings into a Registered Retirement Savings Plan (RRSP) at an interest rate of 3.50% compounded semi-annually. After one year, his investment grew to $24,600; however, the interest rate on the RRSP changed to 3.75% compounded quarterly and remained constant for the next two years. a. Calculate the original amount he invested into the RRSP. $ $0.00 Round to the nearest cent b. Calculate the accumulated value of the investment at the end of three years (two years after the rate change). $ $0.00 Round to the nearest cent
Ms Oksana Doe has just inherited an investment account worth $2,800,000 from her grandparents. The fund earns an annual interest rate of 6%. She plans to make uniform annual withdrawals from the account over the next 25 years. Answer the following two questions: 1. How much will each annual withdrawal be? OA. $223,160 OB. $47,320 OC. $50,960 OD. $232,120 OE. $218,960 2. What will be the balance in the account immediately after making the 8th annual withdrawal? OA. $1,359,698 OB. $1,048,320 OC. $2,294,110 O D. $2,431,991
3. Lauren deposits: ● $240 at the beginning of year 1; $220 at the beginning of year 2; • $100 at the beginning of year 8; I into a fund. Three year after the last deposit, Lauren withdraws the accumulated value of the fund and uses it to buy a perpetuity-immediate with level payments of Z at the end of each year. All calculations assume an annual interest rate of 10%. Calculate Z. Solution:
Provide manual solutions for below mentioned problems. A social worker deposits a uniform amount of P12,000 at the end of each year in order to get a lump sum of money by the time she will retire at the end of 20 years. If the compound amount factor for this annuity is equal to 36.78559. 1. Compute the nominal interest rate.2. Determine how much will she receive at the end of 20 years.3. Determine the worth of the sinking fund factor in this fund invested. Answer. 1. 6% 2. P441,427.08 3. 0.027184557
Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next year. Assuming a rate of 6%, what is the value of the annuity. Choose the closest. a) $106,000 b) $131,808 c) $159,374 d) $171,569
Yarianny wants to withdraw $25199 annually starting today for the next 20 years and will increase the withdrawals by 3.5% each year. If the annuity can earn 6% compounded semi-annually, how much money needs to be invested in the fund today? Select the closest answer choice. Select one: Oa. $402571.57 Ob. $427770.57 O c. $478168.57 d. $452969.57 Check
A retired couple plans to supplement their retirement income with monthly withdrawals of the interest earned on a retirement account which has a balance of $200,000. a. If the fund earns interest monthly at an APR of 6%, which the couple always withdraws from the account, how much is generated in interest each month? Round/take your answer to the nearest cent. Recall that APR stands for Annual Percentage Rate. $ ? b. Estimate (to the nearest tenth of a percent) the annual interest rate needed for this couple to be able to earn $1,350 per month in interest from this $200,000 account. Round your answer to the nearest tenth of a percent, e.g., 2.5%. %-?
A. Ken deposits P100,000 today and another P 200,000 in five years into a fund that pays simple discount at 5% p.a. Ian makes the same deposits into another fund that credits interest at 10% effective per year, but at time n and 2n, respectively. At the end of 10 years, the accumulated value of Ken's deposits is exactly the same as the accumulated value of Ian's deposits. Calculate n.
Dylan contributed $700 at the end of every 3 months, for 4 years, into a Registered Retirement Savings Plan (RRSP) earning 3.50% compounded quarterly. a. What is the future value of the fund at the end of 4 years? $0.00 Round to the nearest cent b. What is the amount of interest earned over the 4-year period? $0.00 Round to the nearest cent
Brittany contributed $3,750 at the end of every 3 months, for 5 years, into a Registered Retirement Savings Plan (RRSP) earning 3.50% compounded quarterly. a. What is the future value of the fund at the end of 5 years? $0.00 Round to the nearest cent b. What is the amount of interest earned over the 5-year period? $0.00 Round to the nearest cent