Lucy purchases a retirement annuity that will pay her $1,500 at the end of every six months for the first eight years and $700 at the end of every month for the next five years. The annuity earns interest at a rate of 3.9% compounded quarterly.
a. What was the purchase price of the annuity?
Round to the nearest cent
b. How much interest did Lucy receive from the annuity?
Round to the nearest cent
Lucy purchases a retirement annuity that will pay her $1,500 at the end of every six...
Catherine purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first ten years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 2.8% compounded quarterly.a). What was the purchase price of the annuity?b). How much interest did Catherine receive from the annuity?
Calculate the accumulated amount of end-of-month payments of $5,000 made at 3.21% compounded quarterly for 4 years. Round to the nearest cent How much should Austin have in a savings account that is earning 4.50% compounded quarterly, if he plans to withdraw $2,400 from this account at the end of every quarter for 9 years? Round to the nearest cent Zachary deposits $350 at the end of every quarter for 4 years and 6 months in a retirement fund at...
Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,400 per month for twenty years. (Round your answers to the nearest cent.) (a) How large a monthly payment must Holly Krech make if she saves for her payout annuity with an ordinary annuity, which she sets up thirty years before her retirement? (The two annuities pay the same interest rate of 7.8% compounded monthly.)...
7. How much interest is included in the future value of an ordinary simple annuity of $1,350 paid every six months at 6% compounded semi-annually if the term of the annuity is 2 years? The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 8. Glenn has made contributions of $250 at the end of every three months into an RRSP for ten years. Interest for...
What is the discounted value of $1327.00 paid at the end of every six months for 10 years if interest is 8% per annum compounded quarterly? The discounted value is $____? (Round the final answer to the nearest cent as needed. Round all intermediate values six decimal places as needed.) Please help!! !!!!! assistancr needed !!
To start saving for retirement, Ali opens an RRSP that earns interest at a rate of 4.4% compounded quarterly. Ali makes deposits of $520 at the end of every quarter for ten years. At the end of the ten years, Ali switches his deposits to $130 at the end of every month for 18 years. a. How much money does Ali have in this RRSP at the end of the 28 years? Round to the nearest cent b. How much...
Suppose an annuity will pay $15,000 at the beginning of each year for the next 7 years. How much money is needed to start this annuity if it earns 7.5%, compounded annually? (Round your answer to the nearest cent.) $ Suppose $200,000 is used to establish an annuity that earns 7%, compounded quarterly, and pays $5500 at the end of each quarter. How long will it be until the account balance is $07 (Round your answer Up to the nearest...
Starting six months after her grandson Robin's birth, Mrs. Devine made deposits of $240 into a trust fund every six months until Robin was twenty-one years old. The trust fund provides for equal withdrawals at the end of each six months for four years, beginning six months after the last deposit. If interest is 5.87% compounded semi-annually, how much will Robin receive every six months? Robin will receive $___ ? (Round the final answer to the nearest cent as needed....
Liz contributed $1,750 at the end of every 3 months, for 4 years, into a Registered Retirement Savings Plan (RRSP) earning 3.25% compounded quarterly. a. What is the future value of the fund at the end of 4 years? Round to the nearest cent b. What is the amount of interest earned over the 4-year period?
Jean receives annuity payments at the end of every six months. If she deposits these payments in an account earning interest at 9% compounded monthly, what is the equivalent semi-annually compounded rate of interest? What sum of money must be deposited at the end of every 3 months into an account paying 6% compounded monthly to accumulate to $25,000 in 10 years? Irina deposited $150 in a savings account at the end of each month for 60 months. If the...