Question

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?

Answer #1

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 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 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 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 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 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 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 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 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 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

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 15 minutes ago

asked 36 minutes ago

asked 53 minutes ago

asked 56 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago