Your uncle is about to retire, and he wants to buy an annuity that will provide him with $95,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 4.70%. How much would it cost him to buy the annuity today? O a. $1,271,700.48 Ob. $1,309,613.64 D O c. $1,232,005.40 O d. $1,214,613.64 Oe. $1,250,824.87 D D D

Q: Suppose you just won the state lottery, and you have a choice between receiving $3,550,000 today or…

A: Choice-1 Amount to receive today is $3,550,000 Choice -2 Annuity amount is $250,000 Time period is…

Q: Sammie Jo wants to begin saving for her retirement in 35 years. She researched and found an annuity…

A: The future value is equal to the sum of the future cash flows multiplied by the future value factor…

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: A life insurance co. is trying to sell you an investment policy that will pay you and your heirs…

A: Perpetuity refers to a financial concept where a stream of cash flows continues indefinitely. It is…

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: Sammie Jo wants to begin saving for her retirement in 35 years. She researched and found an annuity…

A: The question is based on the concept of future value calculation for annuity payment, the annuity…

Q: Suppose you are buying your first home for $210,000, and you have $15,000 for your down payment. You…

A: An arrangement between a borrower and a mortgage lender known as a mortgage, also known as a…

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: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $55,928 of…

A: Annuity = a = $55,928Time = t = 10 YearsRate of Return = r = 8%

Q: Mary is going to receive a 32-year annuity of $9,700 per year. Nancy is going to receive a…

A: We need to use the present value of the ordinary annuity formula to calculate the present value of…

Q: You just inherited some money, and a broker offers to sell you an annuity that pays $19,245 at the…

A: Present value (PV) could be a budgetary concept utilized to decide the current worth of future cash…

Q: 17) Sun Woo wants to purchase an annuity that will pay him $1,000 a month for fifteen years. If he…

A: The Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a…

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: ou just paid $350,000 for an annuity that will pay you and your heirs $18,400 a year forever. What…

A: Rate of return on investment depends on the amount of money paid today for annuity and amount you…

Q: You just purchased an annuity that will pay you $24,000 a year for 25 years, starting today. What…

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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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Q: a. What is today's value of the bequest? b. What is the value of the bequest immediately after the…

A: We can determine the value of a growing perpetuity using the formula below:

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A: Present Value is calculated by dividing the future value by the 1+r factor for the given required…

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

Q: Art wants to know how much he'll have to invest today to receive an annuity of $8,000 for three…

A: The computation of amount of investment is as follows:The investment needed today is the present…

Q: you would like to have enough money saved to receive a $53,000 per year perpetuity after retirement.…

A: Perpetuity refers to something that lasts forever, without an end.It represents an infinite duration…

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A: Perpetual Annuity : When an Investor invests an amount which will keep compounding itself at a…

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: r. Bearer may choose to take a lump-sum payment of $25,292.8 now from his insurance policy or an…

A: Annuity is the series of equal payments that are made at regular intervals and payments are uniform…

Q: Suppose you deposited $39,000 in a bank account that pays 5.25% WI daily compounding based on a…

A: Future value is the amount initially deposited and amount of comounding interest accumulated over…

Q: Your girlfriend just won the Florida lottery. She has the choice of $10,700,000 today or a 20-year…

A: Option 1 i.e. Present Value = 10,700,000 Time Period (N) = 20 years Annuity Amount = 1,050,000 End…

Q: Your friend offers to pay you an annuity of $7,700 at the end of each year for 3 years in return for…

A: Cash flow, C = $7700              No. of periods, n = 3 rate of interest, i = 5.5%

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: 3. Rico wants to buy a retirement annuity that will pay him the first of 50 semiannual payments of…

A: Annuity refers to series of equalized payments that are made over definite period either at start of…

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: Your father is considering purchasing an annuity that pays $5,000 at the beginning of each year for…

A: The objective of the question is to find out the present value of an annuity that pays $5,000 at the…

Q: You purchase a home for $207,000 that you expect to appreciate 8% in value on an annual basis. How…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: What annual contributions to the retirement fund will allow you to receive the $18,000 annuity?

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Q: If George wants to purchase a new home for $400,000 and finance $320,000 with a 4%, 30 year mortgage…

A: Calculate the monthly payment as follows: Monthly payment is $1527.73.

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.