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- Which of the following investment options willmaximize your future wealth at the end of 18 years?Assume any funds that remain invested will earn anominal rate of 12% compounded monthly.(a) Deposit $8,000 now.(b) Deposit $120 at the end of each month for thefirst 12 years.(c) Deposit $105 at the end of each month for 18years.(d) Deposit a lump sum in the amount of $35,000 atthe end of year 12.What is the current net single premium value of the 4-year periodic life annuity with increasing payments for a 30-year-old individual: 30 TL per month for the first year, 40 TL per month for the second year, 50 TL per month for the third year and 60 TL per month for the fourth year? please dont use excel. answer with detail.no discount rateRework part (f), assuming that Annie holds the bond for 10 years and sells it when the required return is 7.0%. Compare your finding to that in part (f), and comment on the bond's maturity risk. PV= 1,000 N=10 I/Y= 7% Assume that Annie buys the bond at its current price of $983.80 and holds it until maturity. What will her current yield and yield to maturity (YTM) be, assuming annual interest? After evaluating all of the issues raised above, what recommendation would you give Annie with regard to her proposed investment in the Atilier Industries bonds?
- 4. Eleanor makes year-end deposits of 500,000 the first year, 550,000 the second year, 605,000 thethird year, and so on increasing the next year’s deposit by 10% of the deposit in the preceding yearuntil the end of the 10th year. Ronald makes equal year-end deposits of 720,00,000 each year for 10years. A.) Is the gradient of Eleanor’s payments increasing or decreasing?B.) If interest on both funds is 12% compounded annually, who will be able to save more atthe end of 10 years.Cory Manciagli is planning to retire in 20 years. Money can be deposited at 6% compounded quarterly. What quarterly deposit must be made at the end of each quarter until Cory retires so that he can make a withdrawal of $40,000 semiannually over the first 10 years of his retirement? Assume that his first withdrawal occurs at the end of six months after his retirement. (Hint: Apply concept of economic equivalence at the end of 20 years).Please help me solve this. Please show every so I can understand. Question: A quinceañera fund is established by making four (4) identical deposits: Upon the birth of a baby girl, Upon the girl's 1st birthday, Upon the girl's 2nd birthday, and Upon the girl's 3rd birthday. Suppose that the fund that pays 4% interest compounded annually, and that the full balance of 10,527 dollars is withdrawn upon the girl's 15th birthday. How much is the amount of each deposit? Round your answer to the nearest whole number. Do not use currency signs such as "$."
- 9. A P 15,000 bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed at par at the end of this period. If it is sold now for P 1,390, determine the yield at this price.Consider a 25-year loan with an annual interest rate of 7 percent and monthly payments of $1,201.53. The discount points charged by the lender at origination are 3 percent and the cost of borrower title insurance and mortgage insurance are, respectively, 0.5 percent and 2.0 percent of the loan amount. Additional fees paid to other third parties (i.e., not the lender) will equal $4,000. What is the loan amount? What is the lender’s yield/IRR? What is the effective borrowing cost (EBC)? USE EXCELConsider a 529 (college savings) plan that will pay $20,000 once a year for a 4-year period (4annual payments). The first payment will come in exactly 5 years (at the end of year 5) and thelast payment in 8 years (at the end of year 8). What is the duration of the pension obligation? The current interest rate is 8% per yearfor all maturities.
- 2.4 A man wishes to provide a fund for his retirement such that from his 60th to 70th birthdays hewill be able to withdraw equal sums of P18,000 each for his yearly expenses. He investsequal amounts from his 41st to 59th birthdays in a fund earning 10% compounded annually.How much should each of these amounts be?Pls solve for the ordinary annuity of the following: Joe deposits $22,000 at the end of each year for 7 years, in an account paying 6 % compounded annually, how much will he have on deposit after 7 years? Ans: $184,664.43 Napoleon deposits $1,200 at the end of each quarter for 10 years, in an account paying 8 % compounded quarterly, how much will he have on deposit after 10 years? Ans: $72,482.38 Jose wants to retire in twenty years and for this purpose he is depositing $200 at the end of each month in a sinking fund that pays 7.2% compounded monthly. If he will be doing this for twenty years, then how much money will be there for him when he retires? Ans: $106,752.47A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. What is the bond's price? Assume annual compounding. Round your answer to two decimal places.