FINA310 Unit 3 IP Assignment

ook ences Chris Seals has just given an insurance company $62,525. In return, she will receive an annuity of $7,458 for 12 years. a. At what rate of return must the insurance company invest this $62,525 to make the annual payments? (Use a Financial calculator to arrive at the answers. Round the final answer to 3 decimal places.) Rate of return b. What rate of return is required if the annuity is payable at the beginning of each year? (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Rate of return

Chapter 4, Question 1.

ces You have a choice of four increasing annuities as shown in the table below. Which annuity will reach a future value of $100,000 the earliest? Annuity B Annuity C $1100 Annuity D $800 $57 8% 3% 52 1 Payment Annual Rate Interest Periods Per Year Annuity A $300 5% 12 (Use the interactive figure to find your answer.) Click here to launch the interactive figure. Choose the correct answer below. OA. Annuity D OB. Annuity A OC. Annuity B OD. Annuity C 9% 4 چلے i, 14e gin MLM Incorrec

Excel Online Activity: Required annuity payments 1 Question 1 0/10 Submit HVideo Excel Online Structured Activity: Required annuity payments Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $60,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 4%. He currently has $70,000 saved, and he expects to earn 9% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Qoen spreadsheet How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do…

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QUESTION 14 What’s the interest rate of a 8-year, annual $3,500 annuity with present value of $20,000? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.) ANNUITY INTEREST RATE                %

If you owe $47,000 payable at the end of five years, what amount should your creditor accept in payment immediately ifse cou earn 8 percent on her money? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Présent value eBook Hint ant Reterenc PV=F 47,0

QUESTION 5 Katharine Bartle will receive an annuity of $4,090.00 every month for 23 years. How much is this cash flow worth to them today if the payments begin today? Assume a discount rate of 5.00%. Oa. $55,398.13 b. $2,119,880.47 c. $672,837.73 Od. $170,156.69

Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity $4,000 Interest rate 5% Deposit period (years) 11 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable as an investment? Explain why. a. (1) The future value of the ordinary annuity is $. (Round to the nearest cent.) C

Question Help Acme Annuities recently offered an annuity that pays 4.2% compounded monthly. What equal monthly deposit should be made into this annuity in order to have $70,000 in 10 years? The amount of each deposit should be $. (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. Clear All Check Answer All parts showing ר

Problem 5.06 (Future Value: Annuity Versus Annuity Due) eBook What's the future value of an 11%, 5-year ordinary annuity that pays $400 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the nearest cent. Future Value of an Ordinary Annuity: $ Future Value of an Annuity Due: $

Future and present value of an annuity Find the future and present value of a 20-year ordinary annuity paying $500.00 per year at each of the following interest rates: a, 20% h 10% c 1% d 0.1% e. What is the general principle that you see when you compare your answers here? What value are both the present value and future value getting close to as you move from part a to part d?

You want to be able to withdraw $30,000 from your account each year for 30 years after you retire. You expect to retire in 20 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals? Question Help: DVideo 1 D Video 2 Submit Question

Finance Find the savings plan balance after 18 months with an APR of 6% and monthly payments of $800. Assume an ordinary annuity. a. $15,028.63 c. $15,360.28 b. $15,280.36 d. $15,306.82 Please select the best answer from the choices provided A B C D

Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here 9 in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity Interest rate Deposit period (years) $6,000 8% 10 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable as an investment? Explain why. ..... a. (1) The future value of the ordinary annuity is $ (Round to the nearest cent.) (2) The future value of the annuity due is $ (Round to the nearest cent.) b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity is preferable as an investment? (Select the best answer below.) Ordinary annuity, because it yields a greater future value. Annuity due, because it yields a greater future value.

how do I do this on the financial calculator?

QUESTION 43 A student wants save for college which begins in five years.  How much will the student save assuming equal deposits of $2,500 at the beginning of each year and 4% interest?  Following are appropriate factors from tables:    Table %   /  n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Future value of annuity due $1 Future Value of ordinary annuity of $1 4%/5 4.62990 4.45182 5.63298 5.41632     $11,574.75     $13,540.80     $14,082.45      $11,129.55

If you were to put $1,000 in the bank each year for the next 10 years at 6% interest, which table would you use to find the ending balance in your account? Group of answer choices Future value of $1 Present value of an annuity of $1 Future value of an annuity of $1 Present value of $1

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posit at the end of hat year 3? p5-19 Future value of an annuity For each case in the accompanying table, answer the questions that follow. Case Amount of annuity Interest rate Deposit period (years) A. $ 2,500 8% 10 S00 12 30,000 20 D. 11,500 8. E 6,000 30 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. h Compare your findings in parts a(1) and a(2). All else being identical, which type able? Explain why.