ZuoTi.Pro
Question

00 per year starting when you retre 45 years from today the first S50 000 wil get pa d 45 rears from now) If your discount rate is 6%, compounded annually, and you plan to live fr 18 years after so that you will receive a total of 19 payments including the first one). what is the value today of Social Securitys promise?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The value today of social security's promise is $ 42,963.81

re us amnualu men S The Pv -4니 50,000 (1-(Hou) ニー833,333.331 L 833333.33 Co.cc 9486)u, we meed do di Vn back en Pvwu SS7, 905.82 557, 905.82 12.985y

0 0
Add a comment
Know the answer?
Add Answer to:
00 per year starting when you retre 45 years from today the first S50 000 wil...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Assume that Social Security promises you $40,000 per year starting when you retire 45 years from...

    Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $ 40,000 will get paid 45 years from now). If your discount rate is 7% , compounded annually, and you plan to live for 15 years after retiring (so that you will receive a total of 16 payments including the first one), what is the value today of Social Security's promise? Assume that Social Security promises you $40,000 per year starting...

  • Assume that Social Security promises you $40,000 per year starting when you retire 45 years from...

    Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will get paid 45 years from now). If your discount rate is 4%, compounded annually, and you plan to live for 13 years after retiring (so that you will receive a total of 14 payments including the first one), what is the value today of Social Security's promise? The value today of Social Security's promise is S(Round to the nearest...

  • Assume that Social Security promises you $30,000 per year starting when you retire 45 years from...

    Assume that Social Security promises you $30,000 per year starting when you retire 45 years from today (the first $30,000 will get paid 45 years from now). If your discount rate is 6%, compounded annually, and you plan to live for 18 years after retiring so that you will receive a total of 19 payments including the first one), what is the value today of Social Security's promise? The value today of Social Security's promise is $LI (Round to the...

  • Assume that Social Security promises you $48,000 per year starting when you retire 45 years from...

    Assume that Social Security promises you $48,000 per year starting when you retire 45 years from today (the first S48,000 will get paid 45 years from now). If your discount rate is 6%, compounded annually, and you plan to live for 14 years after retiring so that you will receive a total of 15 payments including the first one what is the value today of Social Security's promise? The value today of Social Security's promise is (Round to the nearest...

  • Assume that Social Security promises you $ 43 comma 000$43,000 per year starting when you retire...

    Assume that Social Security promises you $ 43 comma 000$43,000 per year starting when you retire 45 years from today​ (the first $ 43 comma 000$43,000 will get paid 45 years from​ now). If your discount rate is 7 %7%​, compounded​ annually, and you plan to live for 1818 years after retiring​ (so that you will receive a total of 1919 payments including the first​ one), what is the value today of Social​ Security's promise? The value today of Social​...

  • P 4-45 (similar to) E Question Help You are looking to buy a car and can...

    P 4-45 (similar to) E Question Help You are looking to buy a car and can afford to pay $190 per month. If the interest rate on a car loan is 0.73% per month for a 60-month loan, what is the most expensive car you can afford to buy? The amount that you can afford is S. (Round to the nearest dollar.) P 4-22 (similar to) Question Help You figure that the total cost of college will be $93,000 per...

  • You gure hat the to a costo college will be S99 000 per year 18 years...

    You gure hat the to a costo college will be S99 000 per year 18 years rom today f your discount rate is 6% compounded annually, what s the present value today o our years o college costs starting 18 years o oday? The present vakue today of four years of college costs starting 18 years from today is s(Round to the nearest dolilar)

  • Please help by providing explanations/step-by-step processes for solutions. Thank you in advance! 1. You are 20...

    Please help by providing explanations/step-by-step processes for solutions. Thank you in advance! 1. You are 20 years old. Starting at age 70 (in 50 years), it is expected that you will begin to receive a $1,500 monthly check from Social Security. You expect to live until you are 86 years old. Assuming a discount rate of 5%, what is the value today of the expected stream of Social Security payments? 2. 5. Suppose an investment promises to pay you $10,000...

  • You plan to retire in 30 years and plan on saving $15,000 annually, starting next year,...

    You plan to retire in 30 years and plan on saving $15,000 annually, starting next year, for the next 30 years. You expect to need $120,000 about 18 years from now for college tuition for your recently born daughter which must be paid out of these savings. You expect to live 35 years during retirement (the first retirement payment will be 31 years from today). 1. If you assume an interest rate of 8.15% over the entire period, how much...

  • You plan to save $240 per month starting today for the next 33 years "just to...

    You plan to save $240 per month starting today for the next 33 years "just to start the month off right." You feel that you can earn an interest rate of 10 percent compounded monthly. How much will there be in the account 33 years from today? Multiple Choice O $747618.00 O $690,761.90 $741.439.34 5640,084.45 $704.092.89

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT