We Pay Insurance Co. will pay you $1,500 each quarter for 29 years. You want to...
We Pay Insurance Co. will pay you $1,450 each quarter for 27 years. You want to earn a minimum interest rate of .99 percent per quarter. What is the most you are willing to pay today for these payments? $95,420.38 $91,124.72 $277,956.49 $92,723.40 $95,920.76
Atlas Insurance wants to sell you an annuity which will pay you $600 per quarter for 20 years. You want to earn a minimum rate of return of 5.0 percent compounded quarterly. What is the most you are willing to pay as a lump sum today to buy this annuity?
The Insolvent Insurance Co. will pay you $2,500 a year for 10 years in exchange for $30,000 today. What interest rate will you earn on this annuity? 5.50 percent 5.60 percent 5.55 percent -3.18 percent 3.18 percent
Beginning three months from now, you want to be able to withdraw $1,500 each quarter from your bank account to cover college expenses over the next three years. If the account pays .37 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next three years?
An insurance company is trying to sell you an investment policy that will pay you and your heirs $50,000 per year forever. If the required return on this investment is 5.4 percent, how much will you pay for the policy? A.$1,265,455.25 B.$1,627,950.42 C.$872,688.17 D.$925,925.93 Beginning three months from now, you want to be able to withdraw $2,300 each quarter from your bank account to cover college expenses. The account pays 1.45 percent interest per quarter. How much do you need...
A company has a pension liability of $460,000,000 that it must pay in 29 in years. If it can earn an annual interest rate of 4.2 percent, how much must it deposit today to fund this liability? Multiple Choice O $133,883,255.09 Ο $139,506.351.81 Ο Ο 44,08571.14 Ο $11755.30770 ( $121423,867.90
3. A student pays 87.50 per quarter for insurance. What would the pay- ments be if they were made annually? Monthly? Weekly? Every two years? Annual interest is 18% compounded monthly. 4. A bank customer deposits $100 at the end of every quarter for 5 years. He then increases the deposit to $120 and continues to make quarterly payments for 6 more years. Assuming an effective rate of 8% per annum, how much is in account after 5 years? After...
You deposit $11,000 annually into a life insurance fund for the next 10 years, after which time you plan to retire. a. If the deposits are made at the beginning of the year and earn an interest rate of 7 percent, what will be the amount in the retirement fund at the end of year 10? b. Instead of a lump sum, you wish to receive annuities for the next 20 years (years 11 through 30). What is the constant...
You will receive 29 annual payments of $23,500. The first payment will be received 8 years from today and the interest rate is 5.2 percent. What is the value of the payments today? $231,998.06 $382,663.13 $230,502.96 $25219736 O $244,061.96
You are planning for your future needs and retirement. You want to receive $50,000 five years from today and retirement annuity of $100,000 per year for 25 years with the first payment 10 years from today. To pay for this, you will make 5 payments of $A per year beginning today and 10 annual payments of $A with the first payment 8 years from today. With an interest rate of 8%, what is the value of A?