Question

Suppose a friend tells you about an annuity that pays 6% annual interest. You invest in...

Suppose a friend tells you about an annuity that pays 6% annual interest. You invest in the annuity contributing $10,000 semiannually for 6 years. What is the value of the annuity after your last investment? Enter your answer rounded to the nearest hundred dollars and omit the dollar sign and comma (For example, $42,570.21 should be entered as 42600.)

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
Suppose you bought a bond with an annual coupon of 6 percent one year ago for...
Suppose you bought a bond with an annual coupon of 6 percent one year ago for $964. The bond sells for $938 today. If the inflation rate last year was 3 percent and the face value of the bond is $1000, what was your total real rate of return on this investment? (Negative amount should be indicated by a minus sign. Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2...
A 30 year annuity due earns a 6% rate of return.  If you invest $40,000, what is...
A 30 year annuity due earns a 6% rate of return.  If you invest $40,000, what is the payment (rounded to the nearest dollar) you will receive at the beginning of each year?
You can invest in an account that pays simple interest or an account that pays compound...
You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $658 today and both accounts have an annual interest rate of 5.5%. How much more interest will you receive in the 7th year in the account that pays compound interest? Round your answer to the nearest penny, and do not type the "$" sign?
A.)How much do you need to invest semiannually into an ordinary annuity earning an annual interest...
A.)How much do you need to invest semiannually into an ordinary annuity earning an annual interest rate of 7.12% compounded semiannually so that you will have $5,953.19 after 7 years? B.) If you make quarterly deposits of $309.00 into an ordinary annuity earning an annual interest rate of 5.74%, how much will be in the account after 15 years? How much interest did you earn in those 15 years?
Bank D pays 7.289% effective annual yield, on an investment account in which interest is compounded...
Bank D pays 7.289% effective annual yield, on an investment account in which interest is compounded weekly. What is the annual interest rate before compounding? Enter your answer as a percent, rounded to the nearest four decimals, without the % sign. (9.34562% should be input as 9.3456.)
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1723 monthly. The contract...
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1723 monthly. The contract currently sells for $126268. What is the effective annual return on this investment vehicle? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
A financial advisor tells you that you can make your child a millionaire if you just...
A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 7.55 interest per year, starting on the day your child is born. How much would you need to invest each year (rounded to the nearest dollar) to accumulate a million for your child by the time he/she is 35 years old? (your last deposit will be...
First National Bank pays 5.9% interest compounded semiannually. Second National Bank pays 6% interest, compounded monthly....
First National Bank pays 5.9% interest compounded semiannually. Second National Bank pays 6% interest, compounded monthly. a. Calculate the future value for each dollar invested in First National (Assume you invest $1). (Do not round intermediate calculations. Round your answer to 5 decimal places.)   Future value $    b. Calculate the future value for each dollar invested in Second National (Assume you invest $1). (Do not round intermediate calculations. Round your answer to 5 decimal places.)   Future value $    c. Which...
Your good friend is looking to buy a bond that pays semi-annual interest. The par value...
Your good friend is looking to buy a bond that pays semi-annual interest. The par value is $1,000 and the coupon rate is 4%. Your friend plans to hold the bond to its maturity, which is 10 years from now. If her required rate of return is 3%, what is the most you recommend your friend pay for the bond? (round to nearest cent)
Part A. Suppose your firm has an obligation to pay an annuity with 18 annual payments...
Part A. Suppose your firm has an obligation to pay an annuity with 18 annual payments of $80,000. The first payment is due two years from today. Assume all interest rates are 11.5%. Write down the information requested on your answer sheet. What is the present value of the obligation? Round and express your answer to the nearest whole dollar (i.e., nearest integer). Do not include a dollar sign. Part B. What is the duration of the obligation? Please carry...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT