Your aunt is about to retire, and she wants to sell some of her stock and...
- Your aunt is about to retire, and she wants to sell some of her
stock and buy an annuity that will provide her with income of
$53000 per year for 30 years, beginning a year from today. The
going rate on such annuities is 7%. How much would it cost her to
buy such an annuity today?
- What's the present value of a 4-year ordinary annuity of $2,250
per year plus an additional $3,800 at the end of Year 4 if the
interest rate is 5%?
- What annual payment must you receive in order to earn a 6% rate
of return on a 4 year annuity that has a cost of $2600?
- What's the present value of $11500 discounted back 5 years if
the appropriate interest rate is 4%, compounded
semianually?
- Suppose you borrowed $30,000 at a rate of 8% and must repay it in 5 equal installments at the end of each of the next 5 years. By how much would you reduce the amount you owe in the first year
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Your aunt is about to retire, and she wants to sell some of her
stock and...
An uncle of yours who is about to retire wants to sell some of his stock...
An uncle of yours who is about to retire wants to sell some of his stock and buy an annuity that will provide him with income of $11,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost him to buy such an annuity today? Select the correct answer. a. $133,113.59 b. $133,122.49 c. $133,149.19 d. $133,131.39 e. $133,140.29
14) Your father is about to retire, and he wants to buy an annuity that will...
14) Your father is about to retire, and he wants to buy an annuity that will provide him with $100,000 of income per year for 20 years, beginning a year from today. The going rate on such annuities is 1.0%. How much would it cost him to buy such an annuity today (in $'000s)? a $1,059 b. $1,447 c. $1,805 d. $2,009 e. $3,487 8) What would the future value of $2,000 be after 5 years at 4% compound interest?...
John Smith is about to retire, and he wants to buy an annuity that will provide...
John Smith is about to retire, and he wants to buy an annuity that will provide him with $50,000 of income per year for 20 years, beginning a year from today. The going rate on such annuities is 10%. How much would it cost him to buy such an annuity today? (Sample Answer: $350,789.25)
Your uncle is about to retire, and he wants to buy an annuity that will provide...
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,300 of income a year for 23 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.
aunt zelda’s son starts college in 5 years for which she will need $15,000 payable at...
aunt zelda’s son starts college in 5 years for which she will need $15,000 payable at the end of each of the 4 years. suppose she can buy an annuity in 5 yrs. that will enable her to make the four $15,000 annual payments. draw a timeline for all cash flows. what will be the cost of the annuity 5 years from today? what is the most she should be willing to pay for it if purchased today? assume an...
QUESTION 7 What's the present value of $100,000 discounted back 10 years if the appropriate interest...
QUESTION 7 What's the present value of $100,000 discounted back 10 years if the appropriate interest rate is 6.5%, compounded quarterly? QUESTION 13 Suppose you inherited $500,000 and invested it at 6.25% per year. How much could you withdraw at the end of each of the next 35 years? QUESTION 19 Suppose you borrowed $75,000 at a rate of 12% and must repay it in equal annual installments at the end of each of the next 5 years. 1. How...
Your aunt made you a beneficiary of her insurance policy. It is worth $200,000 and it...
Your aunt made you a beneficiary of her insurance policy. It is worth $200,000 and it will earn 5% interest over your expected lifetime of 45 years. How much income could you get if you take the income beginning immediately ( in other words the insurance is converted to an annuity due)?
Part A Your sister is celebrating her 30th birthday. As the party winds down she asks you for some help. She wants to s...
Part A Your sister is celebrating her 30th birthday. As the party winds down she asks you for some help. She wants to start saving for her retirement at age 60. She tells you that ideally she would like to withdraw $50,000 on an annual basis for 20 years starting the year after she retires. She says that she would be comfortable putting aside some money each year in an annuity and believes that she would be able to earn...
Charlie Stone wants to retire in 30 years, and he wants to have an annuity of...
Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1,000 a year for 20 years after retirement Charlie wants to receive the first annuity payment at the end of the 30th year. Using an interest rate of 10%, how much must Charlie invest today in order to have his retirement annuity (round to the nearest S10) A cash flow series is increasing geometrically at a rate of 6% per year. The initial cash...
Charlie wants to retire in 20 years, and he wants to have an annuity of $40,000...
Charlie wants to retire in 20 years, and he wants to have an annuity of $40,000 a year for 20 years after retirement. Charlie wants to receive the first annuity payment at the end of the year during his retirement period. Using an interest rate of 5% for both savings and retirement periods, how much must Charlie invest today in order to have his retirement annuity? (Round your answer to the nearest dollar).
14) Your father is about to retire, and he wants to buy an annuity that will provide him with $100,000 of income per year for 20 years, beginning a year from today. The going rate on such annuities is 1.0%. How much would it cost him to buy such an annuity today (in $'000s)? a $1,059 b. $1,447 c. $1,805 d. $2,009 e. $3,487 8) What would the future value of $2,000 be after 5 years at 4% compound interest?...
Part A Your sister is celebrating her 30th birthday. As the party winds down she asks you for some help. She wants to start saving for her retirement at age 60. She tells you that ideally she would like to withdraw $50,000 on an annual basis for 20 years starting the year after she retires. She says that she would be comfortable putting aside some money each year in an annuity and believes that she would be able to earn...
Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1,000 a year for 20 years after retirement Charlie wants to receive the first annuity payment at the end of the 30th year. Using an interest rate of 10%, how much must Charlie invest today in order to have his retirement annuity (round to the nearest S10) A cash flow series is increasing geometrically at a rate of 6% per year. The initial cash...
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