Your sister told you about an opportunity which she says has a guaranteed return of 14.46%.  You don't believe her, but just imagine it were true and you  plan to invest your life savings of  $14383. How much will you have in 38 years?

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 client is 34 years old. She wants to begin saving for retirement, with the first payment to…

A: To solve this problem, we will use the future value of an annuity formula and the present value of…

Q: c. The Flemings will need $160,000 annually for 20 years during retirement. How much will they need…

A: A retirement account is an account that compounds savings to be further utilized after retirement.…

Q: Your client is 38 years old. She wants to begin saving for retirement, with the first payment to…

A: Given: Particulars   Client age 38 Savings 5000 Return 10% age 65 age  70

Q: Assume you are currently 25 years old and just received an inheritance of $1,000,000 from a wealthy…

A: Money have time value that means more money would be required in the future for same amount and this…

Q: Your parents will retire in 22 years. They currently have $250,000 saved, and they think they will…

A: Future value is the value of current asset at a particular date in the future when it has earned…

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: Your brother plans to start investing.  He will invest $804 today; $991 in 2 year and $1294 in 6…

A: The concept of time value of money will be applied here. Money invested today grows in future due to…

Q: You have just retired with savings of $8 million. If you expect to live for 34 years and to earn 14%…

A: Here; We have Savings of $8million Expected life is 34 years Interest rate is 14% To Find: Yearly…

Q: Linda would like to have a retirement account with $3,000,000 in it on the day she retires 40 years…

A: Solution:-When an equal amount is invested each periodat end of period, it is called ordinary…

Q: You are thinking about buying a real estate property.  If you buy the property, you think you will…

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

Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could earn…

A: Present value = Future value * Present value of $1 table factor

Q: You have recently adopted a child and are planning to save for her college education. You want to…

A: We need to use future value of ordinary annuity formula to calculate annual payment to achieve…

Q: our client is 21 years old. She wants to begin saving for retirement, with the first payment to come…

A: There is a need to plan for retirement and if done on time with proper planning based on time value…

Q: You have just retired with savings of $2 million. If you expect to live for 54 years and to earn 10%…

A: Current Savings are $2 million The time period is 54 years The interest rate is 10% Annuity type is…

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 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: Assume that your parents wanted to have $130,000 saved for college by your 18th birthday and they…

A: The FV of an investment refers to the combined value of the investment's cash flows at a future date…

Q: You would like your child who was bom today to be a millionaire eventually. To that end, you deposit…

A: Future value refers to the value of cash flow at future date. It can be calculated by compounding…

Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could earn…

A: Given: Future value = $55,000 Years = 3 Interest rate = 6%

Q: Assume that your parents wanted to have $150,000 saved for university by your 18th birthday and they…

A: Annuity refers to a contract between the insurance company and the person in exchange for a fixed…

Q: Your parents will retire in 26 years. They currently have $230,000 saved, and they think they will…

A: Interest rate refers to the charge that is paid by the borrower to the lender on the amount of…

Q: Ronald has an investment opportunity that promises to pay him $52,000 in three years. He could earn…

A: Present value = Future value * Present value of $1 table factor

Q: Your client is 29 years old. She wants to begin saving for retirement, with the first payment to…

A: Here,YearlySavings is $15,000Interest Rate earned is 8%Current Age is 29 years old.

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

A: Savings per year = $12,000Average annual  return =8%Current age = 45 years

Q: Assume that your parents wanted to have $130,000 saved for college by your 18th birthday and they…

A: Given, The amount required is $130,000 Rate is 7.5%

Q: lan to start your own business and are investing today to grow some seed money.  You have $16917 to…

A: Future value of money is the amount today that is deposited and amount of interest accumulated over…

Q: You have just retired with savings of $4 million. If you expect to live for 57 years and to earn 13%…

A:

Q: What rate of return must you earn to achieve your goal?

A: To solve this question, we need to determine the interest rate in a future value of annuity due…