You are contributing money to an investment account so that you can purchase a house in six (6) years. You plan to contribute seven payments of $2,000 a year--the first payment will be made today (t = 0), and the final payment will be made six years from now (t = 6). If you earn 11 percent in your investment account, how much money will you have in the account six years from now (at t = 6)? Select one: a. $20,856 b. $15,350 c. $19,567 d. $17,412 e. $11,683

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A: Computation:

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A: Here, Annual payment = $50,000 Interest rate = 6% Number of periods = 10 years To Find: PV of…

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Q: You graduate and receive a $10,000 cheque from your grandparents. You decide to save it toward a…

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Q: You are offered the opportunity to put some money away for retirement. You will receive 6 annual…

A: Computation:

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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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Q: Assume that you are saving up for a trip around the world when you graduate in two years. If you can…

A:

Q: You are offered an annuity that will pay $10,000 a year for ten years (that is, ten payments), but…

A: Maximum you should pay for this annuity is $ 45,668/.Explanation:

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Q: Let’s say that you are saving up for retirement and decide to deposit $3,000 each year for the next…

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Q: You are saving money for a down payment on a new house. You intend to place $5,000 at the end of…

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Q: You plan on saving $15,200 this year, nothing next year, and $17,500 the three years after that. You…

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Q: You know that you'll inherit $10,000 in 19 years. If you borrow $6,000 now and plan to pay it off…

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Q: You are scheduled to receive $27,000 in two years. When you receive it, you will invest it for 7…

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Q: You expect to receive a payout from a trust fund in 3 years. The payout will be for $11,000. You…

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Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.