Suppose that you just turned 2 5 years old and that you wish to receive a monthly ordinary annuity of $ 4 , 4 5 9 for 3 0 years ( ages 6 5 - 9 5 , end of month payments ) . How much would your monthly contributions also be at the end of each month until age 6 0 , if you let the funds vest until age 6 5 with no further contributions? Your EAR is 5 . 8 % ?

Q: . Determine simple interest owed on $500 for 3 months (1/4 year) at 8% interest.

A: Here is the solution:

Q: 2. Determine the present value of the annuity which provides a payment of $750 every t an interest…

A: Formula for the annuity is  PV=R1+in-1i We are given R=$750n=5×4=20 quartersi=3.25400 (since 1 year…

Q: 2. Saving for Retirement Mr. West wishes to purchase a condo- minium for $240,000 cash upon his…

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Q: 4) If your grandparent made a deposit of $100 the day you were born and another $100 every year on…

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Q: American general offers a 9 years annuity with a guaranteed rate9.76 compounded annually. How much…

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Q: You would like to have $6,000 in four years for a special vacation following graduation bymaking…

A: Future Value of an Ordinary Annuity FormulaThe future value ( FV ) of an ordinary annuity formula,…

Q: How much do you need to take out of your monthly paycheck for 20 years, to be put into a simple…

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Q: When you were born, your grandfather established a trust fund for you in the Land Bank of the…

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Q: Mustafa purchases an annuity due paying 5% quarterly. If his payment is $9651, how much will its…

A: Thanks for the question :)And your upvote will be really appreciable ;)

Q: if you want to get a 15 year term annuity that will pay $30000 annually (for the duration of the…

A: Given that the total  amount  A=$30000interest rate  R=7.2%=7.2100=0.072Number of years T=15 years

Q: An architect is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

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Q: Suppose you can afford to pay $ 475 a month for 7 years towards a new car with no down payment. If…

A: Given Monthly interest rate=4.25%/12 Number of months =7*12

Q: What principal will have a future value of $7942.35 at simple interest rate of 7.3% in three months?…

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Q: Suppose you can afford to pay $300 a month for 5 years towards a new car with no down payment. If…

A: Suppose you can afford to pay $300 a month for 5 years towards a new car Then the Future Value of…

Q: Find the future value of an ordinary annuity of $8000 paid quarterly for 3 years, if the interest…

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Q: How is the present value of a single sum related to the present value of an annuity

A: The objective is to give the relation between the present value of a single sum and the present…

Q: Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12%…

A: To find The amount of an ordinary annuity.

Q: A relative wills you an annuity paying $4,000 per quarter for the next 10 years. If money is worth…

A: We have given the value of each payment i.e  P= $4000 Rate of interest   (r) = 8%  Total year is 10…

Q: Suppose you obtain a $5000 Treasury Note with a 3% annual rate, paid quarterly, with a maturity in 2…

A: See the attachment

Q: What is the present value of a $100 perpetuity deferred for 10 years if the interest rate is 6% ?

A: We have to find the present value Annual cash flow =$100Interest rate = 6Present value…

Q: Find the future value of a annuity with a monthly deposit of $10 at an interest rate of 2.6% per…

A: Here we have to find future value of annuity. For this we will use the formula given below

Q: Mustafa purchases an annuity due paying 6% quarterly. If his payment is $5901, how much will its…

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Q: 9. If you have $100,000 today invested at 9% annual interest, how long will you be able to receive a…

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Q: Suppose that an annuity has a present value of P = 1 million dollars. What interest rate r would…

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Q: 4. At 10% converted annually, find the amount and present value of an annuity of P9,000 payable each…

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Q: 9. A man who is going to be living abroad for 2 years wants to buy an ordinary annuity that will…

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Q: A person loans P500, 000 from a bank with an interest of 4% compounded annually. The person agrees…

A: We will find out the required annual payment.