Which of the following is an annuity? * O Jack gets P10 this year and P20 next O Mah gets P10 in three months and P10 six months later O Bill gets P50 in six months and P20 six months later O Gates gets P100 every year for the rest of her life

Q: Shawn purchases a retirement annuity that will pay him $1,000 at the end of every six months for the…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: How much does Tim need to save each year for 9 years as a regular savings payment if he wants to…

A: Formulas to be used   In excel PMT(rate, nper, pv, [fv], [type]) Rate The interest rate for the…

Q: Your grandmother bought an annuity from Great-West Life Insurance Company for $439,002 when she…

A: Time, the value of money refers to the concept used for calculating the future value of an asset…

Q: is expected to be received in 5 years and her last annual payment is expected in 10 years. She can…

A: Annual payment=$49900Interest rate=12.84%Period= 5 years

Q: Jenna purchases a retirement annuity that will pay her $1,000 at the end of every six months for the…

A: Semi Annual Payment Semi Annual Payment $              1,000.00Time Period (years)8Interest…

Q: A man has children aged 12, 15, and 20. He purchases annuities for each one that pay 3,000 per year…

A: Time value concept Money that is received today is of more worth as compared to the money received…

Q: Vernon has nothing saved for retirement. He wants to receive $46,000 per year for 5 years during…

A:

Q: Jane receives payments of X at the beginning of each year forever. The present value of her annuity…

A: In this question payment is received at the beginning of each year and present value of annuity is…

Q: Laura purchases a retirement annuity that will pay her $2,500 at the end of every six months for the…

A: Present value of annuities will be the equivalent value of future cash flow to be received in the…

Q: (Saving for retirementlong dashfuture value of an annuity) Selma and Patty Bouvier are twins and…

A: The future worth of annuity payment needs to be computed where the two person will retire in same…

Q: son.3

A: The objective of the question is to calculate the present value of the 27 annual payments of $22,500…

Q: will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual…

A: Present value is the equivalent value of money today of the future money based on the time value of…

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1-year old daughter starting…

A: Present worth will be the difference between total present worth of cash inflows and total present…

Q: Matt will receive an annuity of $11,850.75 a year for nine years. The first payment is to be…

A: Here, Particulars Values Annual receipts (PMT)  $ 11,850.75 Time period (NPER) 9.00…

Q: en you retire at 65 you can take either $500,000 in cash or an ordinary annuity that promises to pay…

A: Today value=PV=$500000PMT=annuity=$47488.98Rate-r=8%Required =number of years

Q: Dylan purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Maude Pasy $5000 a year into an annuity contract for 25 years. Maude is paying what?

A: Annuity contract is a contract which involves fixed amount of payment for a fixed period or for the…

Q: promised to pay his son $300 semiannually for 9 years. Assume Pete can invest his money at 8% in an…

A: There is need of proper planning for the future and if done on the proper time it can have proper…

Q: nswoman, wishes to gift her boyfriend P20,000 on their 10th anniversary which is 10 years from now.…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Since Charles is a good boy, his mother plans to give him pocket money three times: S100 today. S100…

A: Here, Amount received today is $100 Amount received after a year from today is $100 Amount received…

Q: Fatima recently set up a tax-deferred annuity to save for her retirement. She arranged to have BD…

A: Working Note # 1 : P= Payment per period = BD 110 R= Rate of interest per period =2%/12 =…

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: Martha receives $100 on the first of each month. Stewart receives $100 on the last day of each…

A: In finance, the concept of the time value of money is crucial, emphasizing that the value of money…

Q: Consuelo pays into an ordinary annuity for 40 years. a. If the annuity earns 5.4% yearly interest…

A: The present value of an annuity is the current value of a series of future payments or receipts,…

Q: Jake plans to contribute $3600 at the end of each year to his IRA. If he earns a return of 8.5%…

A: Future Value Future value  is the worth of any asset or any sum of money at a future date when such…

Q: 1- Ahamed Al Riyami is managing a business with no ownership and he get the resources from the…

A: When the individual is conducting the business activities with the intention of earning profits from…

Q: Find the total value of the annuity at the end of the 2nd year.

A: Ordinary Annuity: These are annuity payments made at the end of the given period. These payments…

Q: Mary buys a 20 year annuity immediate for $100,000 subject to 6% effective annual interest rate. The…

A: Total number periods in annuity are 20 Purchase price of annuity is $100,000 Effective interest rate…

Q: aDamon and his brother Ed inherit annuities from their quirky great aunt Maeve. Damon's annuity has…

A: The present value of a growing annuity is the present worth of a series of cash flows growing at a…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Annuity means no. of finite payments which are the same in size and made in equal intervals. Person…

Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…

A: We need to calculate the persent value of annuity  by using this formula.    PV of annuity =CF*…

Q: Anna receives $1,000 on the first of each month. Josh receives $1,000 on the last day of each month.…

A: Present value of the annuity is the present value of streams of periodic cash flows that occur at…

Q: Michelle purchases a retirement annuity that will pay her $3,000 at the end of ever months for the…

A: Purchase price is the present value of the payments from the annuity based on the period and…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Future value is the value of the future cash flows being compounded at a predefined rate of interest…

Q: Mary wants to receive a payout of $1500 per month for 20 years. 1) How much money must be in the…

A: Using excel PMT and PV function

Q: Alejandra has an payout annuity that pays 66% annual interest compounded monthly. This is a 2020…

A: To solve this question, firstly have to take $10,000 as the present value and by using Annuity…

Q: Krissie wishes to bestow her youngest son Bim P200,000 ten years from now. What amount should she…

A: Value at end of 10th year = P200000 Interest rate for first 5 year = 6% Interest rate for next 5…

Q: A grandmother opens an investment account for her only granddaughter on the day she was born,…

A: The FV of an investment refers to the combined value of the cash flows at a particular future date…

Q: Erica purchases a retirement annuity that will pay her $1,500 at the end of every six months for the…

A: Purchase price of annuity would be the present value of payments received from annuity based on time…

Q: Your mother has an annuity that will give her monthly payments for 13 years. She tell you it is…

A: The present value of annuity due is calculated with the series of annuity payments which is…

Q: You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and…

A: Since, in this question fixed amount is invested each year. So, it is the question of annuity.…

Q: Winston and Bonnie pay $400 at the end of each 6 months for 5 years into an ordinary annuity paying…

A: The Future Value (FV) of an annuity is the total value of a series of equal payments or deposits at…

Q: IRA Anne Wright decides to invest $4000 in an IRACD at the end of each year for 10 years. If she…

A: Future value (FV) is the term which is described as the value of the current asset at the future…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.