A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used to establish an annuity that earns 5%, compounded quarterly, and pays $4500 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.) quarters

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A: Calculate the future value as follows:MS-Excel --> Formulas --> Financials --> FV

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Q: A personal account earmarked as a retirement supplement contains $242,400. Suppose $200,000 is used…

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Q: A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used…

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Q: A personal account earmarked as a retirement supplement contains $242,200. Suppose $200,000 is used…

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A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

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A: Calculate the time period in month:

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Q: Suppose that you are to make annual deposit of $3,000 into a retirement account that pays 11%…

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Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: An annuity is a financial term that depicts a stream of cash flows of an equivalent periodic amount…

Q: A personal account earmarked as a retirement supplement contains $342,300. Suppose $300,000 is used…

A: Computation:

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Q: How long will it be until the account balance is $0?

A: Information Provided: Retirement Supplement = $342,000 Amount used to establish annuity = $300,000…

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A:

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Q: A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used…

A: We use NPER function to calculate no of quarters

Q: What effective rate of return does the annuity investment earn?

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: A personal account earmarked as a retirement supplement contains $342,400. Suppose $300,000 is used…

A: Given data; annuity = $300,000 interest rate = 6% compounded quarterly payment amount = $6500…

Q: A retirement account has $260,000.00 that will be used to start an annuity that earns 4.1%,…

A: Please see the next step for the solution

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A: I/Y = rate = 6.2%/2 = 3.1% NPER = Number of years = 13*2 = 26 PV = Present value = 0 FV = future…

Q: Determine the value of an ordinary annuity if $290 is deposited each month into an account earning…

A: In order to find the future value of an annuity, one can use excel and use FV function to determine…

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A: Introduction: Amount which is deposited into an account now is referred to as present value. The…

Q: a personal account earmarked as a retirement supplement contains 242,400. suppose 200,000 is used to…

A: Excel Spreadsheet:

Q: Recently, More Money 4U offered an annuity that pays 5.4 % compounded monthly. If $1,634 is…

A: Computation of future value and interest earned:

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A personal account earmarked as a retirement supplement contains $342,200. Suppose $300,000 is used…

A: Given data; Payment amount = $5500 annuity amount = $300,000 annual interest rate = 5%   As the…

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A: Future value is the value of current asset or investment at a future date. Future value is…

Q: John Regan, an employee at Home Depot, made deposits of $850 at the end of each year for 6 years.…

A: Annual Deposit = $ 850 Interest Rate =6% Years =6

Q: A deposit of $2,570 is placed into a retirement fund at the beginning of every 6 months for 14…

A: Future value is the value of amount invested today at a future specified period and interest rate.