You own a house along a river that floods severely and destroys the house once every 30 years. If your house is worth 210k, what would be your annual insurance premium in dollars?   You also have the option to build a seawall to lower the odds of your home being destroyed by a flood. If the seawell makes the likelihood of the destructive flood become once every 75 years, what should be your insurance premium?

Q: Gabby is planning to buy a home.  She has some money for a down payment already saved.  She sees a…

A: Monthly payment on the borrowing is calculated using following equation Monthly payment =…

Q: A couple will retire in 50 years; they plan to spend about $26,000 a year (in current dollars) in…

A: Years to retire = 50Retirement period = 25 yearsAnnual expense during retirement = $26,000Interest…

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A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: If she starts now, how much does Sally need to save each month for the next 9 years to accumulate…

A:

Q: You are saving for retirement. To live comfortably, you decide you will need to save $1,400,000 by…

A: Future Value = fv = $1,400,000Time = t = 48Interest Rate = r = 12%

Q: You are considering buying a condo as an investment property. The condo will generate $20,000 a year…

A: Maximum you should pay for the property is the present value of future cashflows

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A: Future value: Future value is $97,435.86

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A: Expected return is amount of profit or loss that is expected to be earned on the annual premium that…

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A: A mortgage is a loan on a property where the collateral is the property itself.

Q: The Kellys are planning for a retirement home. Theyestimate they will need $200,000 4 years from now…

A:

Q: The pipe guy plans to deposit $78,000 into an investment each year for the next 10 years so he can…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

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A: The price of house = $700,000. DownPayment =$100,000 Mortgage loan Tenure = 30 year  The mortgage…

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A: The most that you should be willing to pay for the property is [selling price today*1/(1+r%)^t]

Q: Suppose that you earn $50,000 annually. You expect expenses to drop by 22% for your family in the…

A: If you die you want to provide your family with = 50000 - 0.22*50000 = 39000$39000 every year for 15…

Q: To retire at a decent age and move to Hawaii, an engineer plans to trust her account to an…

A: Excel Spreadsheet: Excel Workings:

Q: You are planning for your retirement. You expect to earn a monthly salary of $7,000 starting on the…

A: First thing you have to calculate retirement amount needed and total amount at retirement.

Q: You just inherited some money, and a broker offers to sell you an annuity that pays $4,300 at the…

A: Present value of annuity is computed as follows:-PV = A*wherePV= Present value of annuityA= periodic…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,800 of…

A: Payment = p = $6800Time = t = 14 yearsInterest rate = r = 5.25%

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Q: 1) Today is your 30th birthday and you must choose between two retirement options. The first option…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

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A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

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A: PV computes the existing value of future benefits by discounting future cash flows with a given…

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A: Worth of money changes with passage of time as money has the power to earn interest.To compute…

Q: Suppose that Kate is 45 years old and has no retirement savings. She wants to begin saving for…

A: As per Bartleby guidelines, if there are multiple sub-parts are given in the question. So, we are…