Question

You are planning for your future needs and retirement. $100,000 10 years from today and a...

You are planning for your future needs and retirement. $100,000 10 years from today and a retirement annuity of $80,000 per year for 20 years with the first payment 20 years from today. To pay for this, you will make 3 annual payments of $x per year beginning today and 2 annual payments of $x per year with the first payment 7 years from today. With an interest rate of 8%, what is the value for x?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
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?
You want to receive $50,000 five years from today and a retirement annuity of $100,000 per...
You want to receive $50,000 five years from today and a 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 for A?
PP2: You've bought an inflation-adjusted annuity to give you a constant real income during your retirement...
PP2: You've bought an inflation-adjusted annuity to give you a constant real income during your retirement years. The annuity will make 20 annual payments. The first payment of $80,000 will occur one year from now Annual payments will then grow at the rate of inflation, 3%, for 19 more years and then stop. (There are 20 total payments and the last payment is made at the end of year 20.) The interest rate is 8%. What is the present value...
Assume that you are 30 years old today, and that you are planning on retirement at...
Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $40,000 and you expect your salary to increase at a rate of 4% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 9% of this year's salary. Likewise, you expect to deposit...
Assume that you are 30 years old​ today, and that you are planning on retirement at...
Assume that you are 30 years old​ today, and that you are planning on retirement at age 65. Your current salary is​ $45,000 and you expect your salary to remain constant as long as you work. To save for your​ retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be​ 8% of this​ year's salary. ​ Likewise, you expect to deposit​ 8% of your salary each...
A. A contract features a lump-sum future flow of $46,000 three years from today. If you...
A. A contract features a lump-sum future flow of $46,000 three years from today. If you can now purchase that flow for $42,201.84, then what annual implied return would you earn on this contract? B. An annuity contract will make 8 annual payments and the first payment occurs exactly a year from today. If the annuity has a 9.2% rate and a current PV or price of $308.98, then what must be the size of its annual payments? C. An...
1a. Your grandmother will be giving you $3,000 per year for the next four years, the...
1a. Your grandmother will be giving you $3,000 per year for the next four years, the first payment beginning at the end of the first year What is the future value of these receivables in year 4 , if the interest rate is 6%? b. Your grandmother will be giving you $3,000 per year for the next four years, the first payment beginning at the end of the first year What is the future value of these receivables in year...
5. An insurance agent is trying to sell you an immediate retirement annuity, which for a...
5. An insurance agent is trying to sell you an immediate retirement annuity, which for a lump-sum fee paid today will provide you with $50,000 every year for the next 20 years. You currently earn 8 percent annual return on investments with comparable risk to the retirement annuity. What is the most you would pay for this annuity? 6. You need $300,000 to buy a house. You decide to borrow money from the bank to finance your mortgage. Assume that...
You want to have $1 million for retirement, 30 years from today. You expect your investments...
You want to have $1 million for retirement, 30 years from today. You expect your investments to earn 8%. You plan to make consistent payment amounts at the beginning of each year for the next 20 years. Then you will stop contributing to the account. How much do you have to set aside to make the goal?
Assume that you are 30 years old today, and that you are planning on retiring at...
Assume that you are 30 years old today, and that you are planning on retiring at age 65. Because your current salary is $45,000 and You expect your salary to increase at a rate of 5% per year as long as you work. To Save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year’s salary. Likewise, you expect the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT