A. Ashley has a large and growing collection of animated movies. She wants to replace her old television with a new LCD model, so she has started saving for it. At the end of each year, she deposits $780 in her bank account, which pays her 7% interest annually. Ashley wants to keep saving for six years and then buy the newest LCD model that is available. Ashley’s savings are an example of an annuity. How much money will Ashley have to buy a new LCD TV at the end of six years?   $5,970.14   $4,742.63   $3,717.90   $5,579.57     B. If Ashley deposits the money at the beginning of every year and everything else remains the same, she will save_______ by the end of six

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A: It is assumed that, 10.5 years from now.

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A: Computation of the money that will be saved by Abby at the completion of 8 years is shown:

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A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: i. Given Annuity=400,000 Interest rate=10% p.a. No. of years=5 FVAn=A1+rn-1r where FVAn=Future…

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A: FV = PV * e^(rt)

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A: Present value and future value is computed by discounting or compounding an amount. Future value is…

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A: formula to find future value of annuity: fva=A×1+rmm×n-1rmwhere,A= annuityr = rate of interestm =…

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A: Working of the amount put down by the Brittany’s Parents is shown: Hence, the amount deposited will…

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A: The question is based on the concept of Present value

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A: Individuals can save for expenditure by investing in financial instruments in which money grows at a…

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A: With the given values, we can determine the future value of annuity and annuity due as follows:

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A: Annual deposit refers to the amount that is deposited or invested each year at given interest rate…

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Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: Solution- Present value of future withrawal ason 10.5 years=Monthly withdrawal ×Present value…

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A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

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A: Future Value of Annuity The future value of annuity refers to the total value of the investment at…

Q: week into her savings account at an interest rate of 1.5% and made a decision not to withdraw any…

A: Amount required after 3 year =350,000 Which also includes interest of 1.5% Net amount required to be…

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A: The amount of the annual annuity payment can be calculated using the below excel formula:

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.