Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for 25922.76 that will pay them 4000 per year for 20 years im trying to fiqure out what rate will they be earning

Q: Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: Quarterly payment (Q) = 15000 pesos n = 25 years = 100 quarters Interest rate = 10.5%

Q: You just paid $570,000 for an annuity that will pay you and your heirs $14,000 a year forever. What…

A: The fixed regular periodic payment made is regarded as an annuity. The annuity is broadly classified…

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: A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and…

A: Variables in the question:Annual payment (P)=$1000Growth (g)=8%Interest rate(r)=11%

Q: John was injured in an accident and the insurance company has offered him the choice of $37,000 per…

A: given data the insurance company has offered him $37000 per year for 15 years the present value of…

Q: Jin decided to sell their farm and to deposit the fund in a bank. After computing the interest, they…

A: The provided information are: Withdrawal amount=P480000 for 8 years Starting at the end of 6 years…

Q: A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and…

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

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

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A: A savings account seems to be an account that is opened by a salaried person. It is a very basic…

Q: You just read about an opportunity to purchase an annuity that pays $1,000 at the end of each of the…

A: Annuity = a = $1000Time = t = 10 YearsInterest Rate = r = 7%

Q: Mr. Lucky just won the lottery. He has a choice of $1,000,000 today or a $50,000 semi-annual payment…

A: The concept of time value of money will be used here.Amount today is the present value and…

Q: that is 2% larger than the last payment. She will continue to show this generosity for 20 years,…

A: Present Value: It is the present worth of a future sum of money discounted at a specific interest…

Q: Your parents would like to establish a trust fund that would pay annual payments to you and your…

A: In this question we require to calculate the present value of perpetuity as we will receive $500000…

Q: A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and…

A: We will use the concept of the time value of money here. As per the concept of the time value of…

Q: Mark is in discussion with you about saving for his retirement. You are to advise him on how much he…

A: Retirement planning is one of the most important aspects of an individual in their life. Every…

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…

Q: our father is about to retire, and he wants to buy an annuity that will provide him with $93,000 of…

A: Annuity is a type of security that pays periodic payments over a period of time. When the payment is…

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

A: ANNUITY =77000 Period =25 years  interest rate =8.5%

Q: As the beneficiary of a life insurance policy, you have two options for receiving the insurance…

A: The question is based on the concept of annuity in Financial Management. Annuity refers to the…

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: You plan to retire in exactly20 years. Your goal is to create a fund that will allow you to receive…

A: Here, Amount of annuity = $200,000 Interest rate = 11% Years to death after retirement = 30 years…

Q: You just accepted an offer from XYZ Petrochemical Company in Louisiana. As a sign up bonus, the XYZ…

A: According to bartleby guidelines,  if multiple questions are asked,  then 1st question needs to be…

Q: our friend is celebrating her birthday and wants to start saving for retirement.  She has provided…

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

Q: Required information Assume that 25 years ago your dad invested $260.000. plus $35,000 in years 2…

A: Let the deposits in year n be Dn. D1 = $260000 D2 to D5 = $35000 D6 to D25 = $43000 r = 15%

Q: The Mellows have decided to invest in a college fund for their young son. They invested $30,000 in a…

A: Rate The interest rateNper  The total number of payments Pmt Payment per periodPv  The present…

Q: Please solve this by using a number line

A: Net Present Value - It is the difference between the present value of cash outflow and present value…

Q: Pretend that you are saving up for a down payment on a car or house. Pretend that we get an…

A: Future value of a present amount Future value is always more than the present amount, deposited in…

Q: wants to remodel his game room in 9 years. He o be $15584. Find the sinking fund payment if h ase an…

A: Sinking fund is amount annual cash flow required for future investment.

Q: Your favorite uncle wants to give each of his favorite nieces and nephews $30,000 now while he is…

A: First, convert R as a percent to r as a decimalr = R/100r = 10/100r = 0.1 rate per year,Then solve…

Q: Mr and Mrs Gonzales set up a TDA to save for their retirement. They are having $100 deducted from…

A: Ordinary annuity refers to the payment when made at the end of each period. The total value of…

Q: An insurance agent just offered you a new insurance product that will provide you with ​$1,959.20…

A: Investment amount (P) = $400 Future value after 13 years (FV) = $1959.20 Period (n) = 13 Years

Q: You are the beneficiary of a life insurance policy. The insurance company informs you that you have…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Assume that Social Security promises you $43,000 per year starting when you retire 45 years from…

A: Present value is the current worth of a future sum of money, discounted back to the present. It…

Q: Anch relative has bequeathed you a growing perpetuty The first payment will occur in a year and will…

A: Growing perpetuity: These are the cashflows that grow forever and doesn't remain fixed. They keep…

Q: Mr. Z is about to retire, and he wants to buy an annuity that will provide him with $57,000 of…

A: This is the case of an annuity. As the annuity occurs at the start of each year this is a case of…