Question

J. Johnson receives a defined retirement benefit, which commences in 15 years. At that time, Johnson...

J. Johnson receives a defined retirement benefit, which commences in 15 years. At that time, Johnson is to receive monthly cash payments of $3,000 for 10 years with the first payment scheduled for the end of the initial month of benefit. Assume an interest rate of 6%.

Required

What is the value of the deferred annuity as of today? Assume annual compounding during the deferral period.

  • Round your answer to the nearest whole number.
  • Do not use a negative sign with your answer.

Homework Answers

Answer #1

for formulas and calculations, refer to the image below -

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
J. Johnson receives a defined retirement benefit, which commences in 15 years. At that time, Johnson...
J. Johnson receives a defined retirement benefit, which commences in 15 years. At that time, Johnson is to receive monthly cash payments of $900 for 10 years with the first payment scheduled for the end of the initial month of benefit. Assume an interest rate of 9%. Required What is the value of the deferred annuity as of today? Assume annual compounding during the deferral period. Round your answer to the nearest whole number. Do not use a negative sign...
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to:...
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.4% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of 2046 after 45 years of service. His retirement is expected to span 15 years. At the end of 2021, 20 years after being hired, his salary is $89,000. The company’s actuary projects Mills’s salary to be...
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% × service years...
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $90,000 at the end of 2021 and the company's actuary projects her salary to be $280,000 at...
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.4% × service years...
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.4% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $97,000 at the end of 2018 and the company's actuary projects her salary to be $315,000 at...
You are planning for your future needs and retirement. You want to receive $10,000 ten years...
You are planning for your future needs and retirement. You want to receive $10,000 ten years from today and a retirement annuity of $50,000 per year for 15 years with the first payment 15 years from today. To pay for this, you will make 5 payments of $A per year beginning today and 4 annual payments of $2A with the first payment 13 years from today. With an interest rate of 8% what is the value for A?
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to:...
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.2% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of 2046 after 45 years of service. His retirement is expected to span 15 years. At the end of 2021, 20 years after being hired, his salary is $92,000. The company’s actuary projects Mills’s salary to be...
Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years...
Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years × final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years’ service. Her retirement is expected to span 18 years. Davenport’s salary is $90,000 at the end of 2018 and the company’s actuary projects her salary to be $240,000 at...
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.3% × service years...
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.3% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $87,000 at the end of 2018 and the company’s actuary projects her salary to be $265,000 at...
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years...
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $84,000 at the end of 2018 and the company’s actuary projects her salary to be $250,000 at...
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service years...
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $89,000 at the end of 2021 and the company's actuary projects her salary to be $275,000 at...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT