When Angela retires in 14 years, he wants to receive $750.00 payments at the start of every month for 27 years from his RIF that earns 3.00% compounded semi-annually. a. What must the balance be in Angela's RIF in order to sustain the $750.00 payments? Round to the nearest cent b. What beginning of quarter deposits does Angela have to make into his RRSP that earns 2.40% compounded quarterly for the 14 years until he retires?

When Angela retires in 14 years, he wants to receive $750.00 payments at the start of every month for 27 years from his RIF that earns 3.00% compounded semi-annually. a. What must the balance be in Angela's RIF in order to sustain the $750.00 payments? Round to the nearest cent b. What beginning of quarter deposits does Angela have to make into his RRSP that earns 2.40% compounded quarterly for the 14 years until he retires?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A family takes a $275,000 20 year mortage at 3.50% annually compounded monthly. a. Compute their monthly payments. o. Immediately after the 121st payment, this family receives a $55,000 from an inheritance. They decide to put this entire amount against the amount they owe. Given that the bank expects them to maintain the same monthly payments as in 4a, compute the length of time (months) it will take to pay the laon off. The same family above realizes that the inheritance income will not materialize (so they are back to 4a). Instead, immediately after their 121st payment they decide to re- fianance at the lower rate of 15% per year compounded monthly. They decide to stick with the same number of remaing monthly payments. What will be their new monthly payment? please draw the cash flow diagrams, and show all calculations!!!!
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Marissa purchased an annuity that had an interest rate of 3.25% compounded semi-annually. It provided him with payments of $1,500 at the end of every month for 6 years. If the first withdrawal is to be made in 3 years and 1 month, how much did he pay for it?
A family takes a S275,000 20 year mortage at 3.50% annually compounded monthly. a. Compute their monthly payments. b. Immediately after the 121 payment, this family receives a $55,000 from an inheritance. They decide to put this entire amount against the amount they owe. Given that the bank expects them to maintain the same monthly payments as in 4a, compute the length of time (months) it will take to pay the laon off.
Catherine Dohanyos plans to retire in 20 years. She will make 20 years of monthly contributions to her retirement account. One month after her last contribution, she will begin the first of 10 years of withdrawals. She wants to withdraw $2400 per month. How large must her monthly contributions be in order to accomplish her goal if the account earns interest of 7.3% compounded monthly for the duration of her contributions and the 120 months of withdrawals? Question content area bottom Part 1 The amount of her monthly contributions must be Senter your response here. (Round to the nearest cent as needed.)
Chelsea's current annual salary is $60,000. This salary is expected to increase by 4% each year. At the end of each year for the next 20 years, Chelsea plans to deposit 10% of her annual salary in a retirement account is paying 6% interest compounded monthly. Determine the amount Chelsea will have in the account at the end of the 20 years.
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Timothy is retiring from his job soon at which time his employer will make the following offer: 1. A lumpsum amount of $200,0002. A sum of $15,000 at the beginning of each year for the next 25 years. If the average interest rate is likely to be 5.5% p.a. for the next 25 years, which option should Timothy choose?
In order to accumulate enough money for their child's college tuition, a couple deposits $4, 000 every three months (quarterly) into an account paying 0.94% annual interest (compounded quarterly) show work. a) How much will the couple have altogether in 15years?
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Gisella borrows $120, 000 from Capital Mortgage Co. at 9% per annum interest, monthly payments for 30 years. At the end of 6 years, she sells the house and will pay off the loan at the closing of sale (assume that the sale takes place at the end of the sixth year). What will her loan payoff be? Using excel functions only and an amortization schedule.
Mr. De Castro wishes to have P1,400,000.00 when he retires 15 years from now. If he can expect to receive 4% annual interest, how much must he set aside in each of 15 equal annual beginning of year deposits.Mr. De Castro wishes to have P1,400,000.00 when he retires 15 years from now. If he can expect to receive 4% annual interest, how much must he set aside in each of 15 equal annual beginning of year deposits.

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