Question

You deposit $11,100 annually into a life insurance fund for the
next 10 years, at which time you plan to retire. Instead of a lump
sum, you wish to receive annuities for the next 20 years. What is
the annual payment you expect to receive beginning in year 11 if
you assume an interest rate of 8 percent for the whole time period?
**(Do not round intermediate calculations. Round your answer
to 2 decimal places. (e.g., 32.16))**

Answer #1

The first step is to calculate the future value of deposits made for the next 10 years. The future value is found using the future value of annuity equation

The lump sum amount at the end of next 10 years = $ 160,800.8434

Using the lump sum payment, the annual payment that can be expected to be received for the next years is calculated using present value of annuity equation.

Solving for the value of A in the above equation,

**The annual payment expected to receive for the next 20
years = $ 16377.92**

You deposit $12,000 annually into a life insurance fund for the
next 10 years, at which time you plan to retire. Instead of a lump
sum, you wish to receive annuities for the next 20 years. What is
the annual payment you expect to receive beginning in year 11 if
you assume an interest rate of 7 percent for the whole time
period?

You deposit $10,000 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 6 percent, what will be the amount in the
retirement fund at the end of year 10? (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g., 32.16))
Future value
$
b.
Instead of a lump sum, you...

You deposit $10,000 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 6 percent, what will be the amount in the
retirement fund at the end of year 10? (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g., 32.16))
Future value
$
b.
Instead of a lump sum, you...

You deposit $11,000 annually into a life insurance fund for the
next 13 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 6 percent, what will be the amount in the
retirement fund at the end of year 13? (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g., 32.16))
Future value
$
b.
Instead of a lump sum, you...

You would like to have $47,000in 9 years. To accumulate this
amount you plan to deposit each year an equal sum in the bank,
which will earn 8 percent interest compounded annually. Your first
payment will be made at the end of the year.
a. How much must you deposit annually to accumulate $47,000 in 9
years?
b. If you decide to make a large lump-sum deposit today instead
of the annual deposits, how large should this lump-sum deposit be?...

1. You would like to have $50,000 in 15 years. To accumulate
this amount you plan to deposit each year an equal sum in the bank,
which will earn 7% interest annually. Your first payment will be
made at the end of the year. o How much must you deposit annually
to accumulate this amount? o If you decide to make a large lump-sum
deposit today instead of the annual deposits, how large should this
lump-sum deposit be? o At...

You would like to have $73,000 in 14 years. To accumulate this
amount, you plan to deposit an equal sum in the bank each year that
will earn 9 percent interest compounded annually. Your first
payment will be made at the end of the year.
a. How much must you deposit annually to accumulate this
amount?
b. If you decide to make a large lump-sum deposit today
instead of the annual deposits, how large should the lump-sum
deposit be? ...

For 2 years, you deposit $45 per month in an account that earns
10% annually with monthly compounding. After the first five months,
you deposit a $500 lump sum. Six months after that (on month 11),
you deposit $1000 into your account. Eight months later (on month
19), you make a $750 deposit. You then move your money to an
account that has 3.5% monthly interest compounded weekly. You keep
it in this account for 3 years. After this time...

7)
You just turned 50 years old
and are planning to retire in 15 years.
You have decided you would like to receive an
annuity rather
than keeping a lum sum. If you invest $12,500 at
the end of
each of the next 10 years, what will your annual
payment
be at the beginning of the first year of your
retirement?
You can assume an interest rate of 6.5% for the
entire period.
The value of $12,500 deposited annually in...

5-1
FUTURE VALUE If you deposit $10,000 in a bank
account that pays 10% interest annually, how much will be in your
account after 5 years?
5-2
PRESENT VALUE What is the present value of a
security that will pay $5,000 in 20 years if securities of equal
risk pay 7% annually?
5-3
FINDING THE REQUIRED INTEREST RATE Your parents
will retire in 18 years. They currently have $250,000, and they
think they will need $1,000,000 at retirement. What annual...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 19 minutes ago

asked 26 minutes ago

asked 36 minutes ago

asked 36 minutes ago

asked 38 minutes ago

asked 59 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago