Question

Faith Rogers decides to put the child-support payments from her previous husband into an annuity for...

Faith Rogers decides to put the child-support payments from her previous husband into an annuity for the education of her two children. At the end of each month for 8 years, she puts $300 into a mutual fund that has yielded 9% compounded monthly. Find the amount of the annuity.

Homework Answers

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
Math of Finance Annuities A) Allison purchased an annuity that provided her with payments of 1000...
Math of Finance Annuities A) Allison purchased an annuity that provided her with payments of 1000 every month for 25 years at 4.5% compounded monthly i) how much did she pay for the annuity ii) what was the total amount of money received from the annuity and how much of this amount was the interest earned B) A company buys a computer for 30000 and pays $5000 down and $5000 at the end of each year. If interest is at...
Katie plans to purchase a new car. She decides to borrow $25,000 from her friend at...
Katie plans to purchase a new car. She decides to borrow $25,000 from her friend at 8% per year compounded monthly for 4 years. She plans to repay the loan with 48 equal monthly payments. How much is the monthly payment? How much interest is in the 23rd payment? What is the remaining balance immediately after she made her 37th payment? Later, she became able to pay off the loan at the end of the 30th month. She has not...
On her 25th​ birthday, a young woman engineer decides to start saving toward building up a...
On her 25th​ birthday, a young woman engineer decides to start saving toward building up a retirement fund that pays​ 6% interest compounded monthly​ (the market interest​ rate). She feels that​ $1,000,000 worth of purchasing power in​ today's dollars will be adequate to see her through her sunset years after her 65th birthday. Assume a general inflation rate of​ 4% per year. ​(a) If she plans to save by making 480 equal monthly​ deposits, what should be the amount of...
Chloe Colburn purchased home appliances for her new apartment. Store allowed her to defer payments (interest...
Chloe Colburn purchased home appliances for her new apartment. Store allowed her to defer payments (interest is still being charged even though payments are deferred) for six months and to make 36 equal end-of-month payments thereafter. The original note was for $15,000, with interest at 9% per annum compounded monthly. After 26 monthly payments, Chloe considers getting a loan from the bank to pay her debts in one lump sum. She would pay the bank $186 per month for the...
Required Annuity Payments. A father is now planning a savings program to put his daughter through...
Required Annuity Payments. A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and should graduate 4 years later. Currently, the annual cost (for everything—food, clothing, tuition, books, transportation, and so forth) is $12,000, but these costs are expected to increase by 6% annually. The college requires total payment at the start of the year. She now has $10,000 in a college savings account...
1. In the following ordinary annuity, the interest is compounded with each payment, and the payment...
1. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.) $215 monthly at 5.8% to accumulate $25,000 Please provide number of years: 2. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the...
1. Find the periodic payments PMT necessary to accumulate the given amount in an annuity account....
1. Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $40,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT = 2. Determine the selling price PV, per $1,000 maturity value, of the bond. (Assume twice-yearly interest payments. Do not round those payments...
You value education and you want your child to receive the best possible education. But sending...
You value education and you want your child to receive the best possible education. But sending a child to private schools and Ivy League colleges is not cheap. You want to start saving money so that when you child need the money, you can support him/her. The current assumption is you will have your 1st child in 5 years and you wish to have $200,000 in today’s dollars when he/she is 15 years old. Based on current situation, you expect...
Paula Oates, age 37, is an unmarried custodial parent. Her household includes three dependent children: Harry...
Paula Oates, age 37, is an unmarried custodial parent. Her household includes three dependent children: Harry (age 15), Holly (age 13), and Holland (age 3). Oates divorced her husband 2 years ago and receives monthly alimony payments of $5,000, with $3,500 of this amount designated as child support. Oates works for a CPA firm. For 2019, Oates, who has adjusted gross income of $40,000 (as reported on Form 1040, line 8b), qualifies to itemize deductions and is subject to federal...
  The following balance sheet and income statement should be used for questions #1 through #6: Kuipers,...
  The following balance sheet and income statement should be used for questions #1 through #6: Kuipers, Inc. 2001 Income Statement (OMR in millions) Net sales 9,625 Less: Cost of goods sold 5,225 Less: Depreciation 1,890 Earnings before interest and taxes 2,510 Less: Interest paid 850 Taxable income 1,660 Less: Taxes 581 Net income 1,079 Addition to retained earnings 679 Dividends paid 400 Kuipers, Inc. 12/31/00 and 12/31/01 Balance Sheet (in OMR, in millions) 2000 2001 2000 2001 Cash 1,455 260...