Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You can afford to put $1,100 per quarter into the fund, and you will work for 40 years before retiring. After you retire, you will be paid a quarterly pension based on a 25-year payout. How much will you receive each quarter? (Round your answer to the nearest cent.)

Q: you are planning for a very early retirement. you would like to retire at age 40 and have enough…

A: You need $235,000 each year for 40 years. Present value for $235,000 for 40 years at 10% can be…

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: Suppose you just won the state lottery, and you have a choice between receiving $2,825,000 today or…

A: Present value = pv = $2,825,000 Time = nper = 20 years Payment = pmt = $240,000

Q: You just inherited some money, and the end of each year for 20 years. You could earn 5% on your…

A: Data given:: PMT(Annuity) = $16800 i= 5% n= 20 years nper= 20   Required:: Amount you should pay…

Q: After carefully exmaining your budget, you determine you can manage to set aside $350 per year. You…

A: Introduction: Future Value of Annuity Due: Future value: The value of an investment made today, with…

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: 8. Mr. Diamond expects to invest $1000 per year for each of the next 20 years in an investment plan…

A: Return from investment plan (F) in which invest $1000 per year at 10% compound interest rate for 20…

Q: ou are saving for retirement in 30 years.  You contribute $5,500 a year to a pension plan for 20…

A: Annuity refers to series of equalized payments that are made either at start or end of specific…

Q: you just won the state lottery, and you have a choice between receiving $2,625,000 today or a…

A: Rate of return inbuilt in annuity is rate at which present value of annuity is equals to amount of…

Q: You have just celebrated your birthday. Your uncle, has set up a trust fund for you, which will pay…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: Which of the following is NOT true about competitive dynamics? High market commonality and high…

A: Competitive dynamics refer to the interactions among firms in a competitive market. It is a critical…

Q: You are trying to decide how much to save for retirement. Assume you plan tpo save $4.000 per year…

A: Here, To Find: Part A. No. of years required to exhaust the savings =? Part B. Rate of return need…

Q: Suppose you win the lottery and you're thinking about whether to take the lump sum or be paid the…

A: First payment: $8 million (immediate payment at t=0)Discount rate: 7%Number of payments: 30Growth…

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: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Present value is the current value of a future amount that is to be received or paid out.     Future…

Q: Your friend Anne is planning to invest $700 each year for four years and will earn a rate of 6…

A: Given information, Annuity Amount = $700 Time Period = 4 years  Interest rate per year = 6%

Q: (Annuity interest rate) Your folks just called and would like some advice from you. An insurance…

A: An annuity refers to a series of equal and regular payments or receipts at fixed intervals. The…

Q: You just turned 23 years old and want to retire when you turn 65. You expect to live for 25 years…

A: Current Age = 23 Retrement Age = 65 Total Difference(n2) = 65-23 = 42 years Expected to live(n1) =…

Q: suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: The computation of down payment as follows: Hence, the down payment is $15,000.

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 aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will…

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

Q: You are planning for a very early retirement. You would like to retire at age 40 and have enough…

A: Particulars Values Annual withdrawals after retirement  $ 2,05,000 Total number of years of…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,000 of…

A: RATE 15.25% YEARS 24 PMT (MONTHLY PAYMENT) 6000 FUTURE VALUE $0 FIRST PAYMENT IMMEDIATE…

Q: You just won the lottery! As your prize you will receive $2,500 a month for 10 years. If you can…

A: To calculate the prize worth today we will use the below formula   Prize worth today =…

Q: Now let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from…

A: Annuities are regular stream of cash flows as payments which occur for a defined period and at a…

Q: Annuity interest rate) Your folks just called and would like some advice from you. An insurance…

A: Present Value of Annuity = pv = $12,798.91Annual payment = pmt = $2000Time = nper = 15 years

Q: You are planning for a very early retirement. You would like to retire at age 40 and have enough…

A: Types of investments and withdrawals: A certain amount of money can be invested either as a lump sum…

Q: Let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from our…

A: Given: Value of the annuity “P” = $1368506.12 Interest rate = 5% Per month rate “r” = 5%/12 Number…

Q: powerful way to save for your retirement. Saving a little is, suppose your goal is to save $1…

A: A. The future value of the deposits can be computed as follows : Calculations :

Q: You have $20,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly.…

A: Step 1:  Step 2:Interest is being compounded quarterly:So interest formula A= P(1+r/n)ntwhere, A =…

Q: You just inherited some money, and you decide to put $70,000 in an account that pays 3.25% interest,…

A: Given:P = $70,000r = 3.25% or 0.0325 in decimaln = 10 years

Q: After consulting with your financial advisor, you figured that you need $9,000 per year for your…

A: Value of annuity is the present value of payments from the annuity based on the interest rate and…