YOU WIN $500,000 do you want to be paid out all at once or do you want to receive annual end of year payments of $33,000 for 20 years. you can earn 3% per year, what is the persent value of the annuity stream.

Q: What would you pay for an annuity of $2,000 paid every six months for 12 years if you could invest…

A: Details given in the question are : Annuity payment every six months (PMT) = $2000 Time period (n) =…

Q: Find the present value of a perpetuity that pays $2,000 per year and the interest rate is 10%.

A: We are given following details : Annual cash flow in perpetuity = $2000 Interest rate = 10% We need…

Q: You have a chance to buy an annuity that pays Php2,500 at the end of each year for 3 years. You…

A: As per the given information: Annual payment = Php2,500Interest rate = 5.5%Period - 3 years To…

Q: You have decided to buy an annuity from a life insurance company that provides an annual payment of…

A: An annuity is a financial product or investment contract that provides a series of regular payments…

Q: You have set up a life annuity with a present value of $250,000. If your life expectancy at…

A: Using the PMT function in excel

Q: A retirement plan offers to pay $20, 000 per year for 30 years andincrease the annual payment bytwo…

A: The money and resources that a person or family receives during their retirement years are referred…

Q: Your friend offers to pay you an annuity of $2,500 at the end of each year for 3 years in return for…

A: Annual Payment (P) = $2,500Interest rate (r) = 5.5% or 0.055Number of years (n) = 3

Q: You have just won the lottery and took a lump sum payout. After talking with a financial adviser you…

A: Present value of $16,000: Present value: $376,205.407024

Q: Dylan is setting up an income fund for his retirement. He would like to receive $12000 every 6…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: A new investment opportunity for you is an annuity that pays $800 at the beginning of each year for…

A: Beginning of period Annuity Annuity Amount = 800 Time Period (N) = 3 years Rate = 5.5%

Q: You need $24787 in 5 years.  If you think you could earn an annual rate of 12.35%, what would be…

A: The concept of time value of money states that the money received today is worth more than that the…

Q: The Solvent Insurance Co. will pay you $4,750 a year for 15 years in exchange for $45,000 today.…

A: in this you have to find out present value FACTOR and from that you can get interest rate.

Q: How much would you be willing to pay today for an ordinary annuity that makes equal annual payments…

A: An ordinary annuity is the series of an equal payment that is paid or received at each week, month,…

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:

Q: You invest in an ordinary annuity $3,000 annually at 7% annual interest. What is the future value of…

A: Given:  Amount = 3000 r = 7% n = 5 years

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…

A:

Q: You got $80,000 as a gift. Rather than give you a lump sum, you are given the gift as an annuity…

A: An annuity is a financial contract in which an individual makes a series of payments or deposits to…

Q: Suppose Joan deposits 400 every month for 25 years into an IRA earning 12 percent compounded…

A: The Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: What is the future value of a 12%, 10 year annuity due that pays 1,000 each year.

A: The objective of the question is to calculate the future value of an annuity due. An annuity due is…

Q: Jami Minard wants to receive an annuity of $8,000 at the beginning of each year for the next 10…

A: Annuity refers to a contract between an individual and an insurance company under which a desired…

Q: Your pension plan is an annuity with a guaranteed return of 5.8% per year (compounded quarterly).…

A: To solve this problem, we need to break it down into two main parts:1. Accumulation Phase (Before…

Q: An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How…

A: Annuity Due = a = $17,250Time = t = 6Interest Rate = r = 7.34%Type Payment = due = at the beginning

Q: If your trust fund promises to pay you $25, 000 on your 24th birthday (6years from today) and earns…

A: Present Value is the current worth of an amount to be received in future. To calculate the present…

Q: Maria has leased an auto for 3 years at $200/month. If the money is worth 5%/year compounded…

A: To find the present value of this lease, we need to use the formula for the present value of an…

Q: Your goal is to save up $30,000 to use as a future down payment. If you save $4,596 every year in an…

A: Here,RequiredAmount (FV) is $30,000Yearly Savings (PMT) is $4,596Interest Rate (Rate) is 3%

Q: If you want to be paid from a 15 year ordinary annuity with a guaranteed rate of 4.277% compounded…

A: Annual payment (C) = $10,000 Period (n) = 15 Years rate (r) = 0.04277 (i.e. 4.277%) Present value or…

Q: a) You deposit $200 monthly into an annuity with the goal of accumulating $180,000 after 30 years.…

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

Q: Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You…

A: Formula for Calculating Future Value = PMT [(1+i)n - 1] / i Here, PMT = 1600              i    =…

Q: What is the present value of a Annuity where the investor receives $10,000 every year for 10 years…

A: Annuity = a = $10,000Time = t = 10 yearsInterest rate = r = 4.5%

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Yearly annual income = $15,000 Interest rate = 4%   NOTE: As per our…

Q: What is the future value​ (FV) of this​ perpetuity, given that the interest rate is 3​%?

A: The future value of an investment forecasts the expected value of an investment at a given future…

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

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: You purchase an ordinary annuity with 4% interest and will receive regular quarterly payments of…

A: The interest rate is 4% Quarterly rate, the rate is 4%4= 1% Regular Quarterly payment, PMT is $4500…

Q: You need to have 80,000 at the end of 7 years. To accumulate this sum, you have decided to save a…

A: Time Period = 7 years Future Value Required = 80,000 End of period deposits Interest Rate = 11%…

Q: You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective…

A: Present value of annuity = $10000 Interest rate (r) = 4% Annuity amount (A) = $500 Additional amount…

Q: You buy an annuity that will pay you $24,000 a year for 25 years.  What is the value of this annuity…

A: Present value of annuity = Annuity amount * PVA of $1

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: What iS the fair market price today for an annuity that pays you $350 at the beginning of each month…

A: Annuity refers to the series of payment at regular interval for certain period.