Question

Jane Evans receives payments of​ $900 at the beginning of each month from a pension fund...

Jane Evans receives payments of​ $900 at the beginning of each month from a pension fund of ​$72,500.

Interest earned by the fund is​ 6.3% compounded monthly.

​(a) What is the number of payments Jane will​ receive?

​(b) What is the size of the final​ payment?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a

Calculator - Due
Inputs:
PV $72,500.00
PMT           (900.00)
FV                      -  
Rate 0.52500%
Output:
Number of payments             104.26

b

Calculator
Inputs:
PV       72,500.00
PMT ($900.00)
Rate (I/Y) 0.525%
Term N             103.00
Output:
FV ($1,135.86)

Final payment is 1135.86

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Tom receives pension payments of $6000.00 at the end of every six months from a retirement...
Tom receives pension payments of $6000.00 at the end of every six months from a retirement fund of $90 000.00. The fund earns 8.00% compounded semi-annually. a) How many payments will Tom receive? b) What is the size of the final pension payment?
From the time Jane and John’s daughter was born, they decided to save for her university...
From the time Jane and John’s daughter was born, they decided to save for her university education. Jane and John assume their daughter will require $1000 per month for her four years of study, payments being made at the beginning of each month. If Jane and John save for 18 years, calculate the amount they must save at the beginning of each month. Assume 6% p.a. interest is compounded monthly. Hint: there are two annuities here, calculate the lump sum...
Jane and John Smith have accumulated $650,000 for their retirement, which begins today. They plan to...
Jane and John Smith have accumulated $650,000 for their retirement, which begins today. They plan to receive monthly payments from their investments, which will be paid at the beginning of each month over the next 35 years based on their estimated life expectancy. If investments are accumulating at an after-tax annual rate of 5.75%, compounded monthly, what will be the payment amount that the Smiths will receive each month to the nearest dollar?
Harlan made equal payments at the end of each month into his RRSP. If interest in...
Harlan made equal payments at the end of each month into his RRSP. If interest in his account is 11.1% compounded semi-annually​, and the balance after eleven years is ​$14,000​, what is the size of the monthly ​payment? The size of the monthly payment is ​$nothing. ​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)
For 32 years, Janet saved $850 at the beginning of every month in a fund that...
For 32 years, Janet saved $850 at the beginning of every month in a fund that earned 5.38% compounded annually. a. What was the balance in the fund at the end of the period? b. What was the total amount of interest earned over the period?
Pearson sets up a fund to pay​ $1000 at the end of each month for 9.5...
Pearson sets up a fund to pay​ $1000 at the end of each month for 9.5 years. Interest on the fund is​ 3.9% compounded monthly. ​(a) How much money must be deposited into the​ fund? ​(b) How much will be paid out of the​ fund? ​(c) How much interest is earned by the​ fund?
Mr. Dawson wants to receive payments of $1,320.00 at the beginning of every month for 19...
Mr. Dawson wants to receive payments of $1,320.00 at the beginning of every month for 19 years starting on the date of the retirement. If he retires in 21 years, how much must he deposit in an account at the beginning of every month if interest on the account is 6.84% compounded monthly? A. $222.41 B. $242.81 C. $228.81 D. $280.21 E. $284.21
hree employees of the Horizon Distributing Company will receive annual pension payments from the company when...
hree employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of...
Ali receives $2,400 from an investment at the beginning of every month for 1 years and...
Ali receives $2,400 from an investment at the beginning of every month for 1 years and 8 months at 5.78% compounded quarterly. a. What type of annuity is this? Ordinary simple annuity Ordinary general annuity Simple annuity due General annuity due b. How many payments are there in this annuity?
A) Suppose payments were made at the end of each quarter into an ordinary annuity earning...
A) Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at the rate of 10% per year compounded quarterly. If the future value of the annuity after 5 years is $50,000, what was the size of each payment? B) The Pirerras are planning to go to Europe 3 years from now and have agreed to set aside $150/month for their trip. If they deposit this money at the end of each month into...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT