Can you help me work out this problem in detail?   Ben wants to receive $6,000 a year for 10 years. How much must he invest today in an annuity that pays 7% annually?

Q: Spencer would like to purchase a new car for $12,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function.

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of…

A: The cost to buy an annuity today is calculated by discounting the annuity values with the present…

Q: Roger decides to start an investment account by depositing $5,000 today. In one year he will invest…

A: Initial deposit (Year 0) = $5,000 Year 1 Deposit = $500 Year 2 Deposit = $600 Year 3 Deposit = $700…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Here, Annual payment = $50,000 Interest rate = 6% Number of periods = 10 years To Find: PV of…

Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…

A: Given: Future value = $50,000 Interest rate = 4.5% Years =10

Q: Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She…

A: Given: Holly Krech is planning for her retirement, so she is setting up a pay-out annuity with her…

Q: Bob Katz would like to save $250,000 over the next 25 years. If Bob knows today that he will be…

A: Amount likely to be saved is $250,000 Interest rate is 4% Inheritance received in year -15 is…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: JOSH WANTS TO BUY A HOUSE AND WOULD NEED A $200,000 LOAN. HE WILL AMORTIZE THE LOAN FOR OVER 15…

A: Solution Firstly lets calculate the annual installment Annual installment          = loan amount/…

Q: Hannah wants to have $ 4500 to help pay for a new deck in 7 years. If she wants to put her money…

A: FV = PV * e^(rt)

Q: Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Jennifer's pension plan is an annuity with a guaranteed return of 6% per year (compounded monthly).…

A: The periodic payment is the amount that will be paid every period which includes the principal…

Q: Kate Rose is setting up an annuity for a memorial scholarship. What lump sum does she need to set…

A: Given information: Annual interest rate is 7% Annuity payment is $2,500 Number of years is 10

Q: A person wants to make an amount of $ 5,000 to accumulate over a period of 15 years so that he can…

A: Annual, or yearly, billing is a popular choice for many businesses since it delivers a whole year of…

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: Art wants to know how much he'll have to invest today to receive an annuity of $8,000 for three…

A: The computation of amount of investment is as follows:The investment needed today is the present…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $73,000 of…

A: The provided information are: Particular Value RATE 5.25% YEARS 19 PMT (MONTHLY PAYMENT)…

Q: Jami Minard wants to receive an annuity of $8,000 at the beginning of each year for the next 10…

A: Annuity refers to a contract between an individual and an insurance company under which a desired…

Q: A man wishes his son to receive $250,000 ten years from now. What amount should he invest if it will…

A: Given: FV = $250,000   To calculate: Present Value   Let's understand the interest rates:…

Q: Jean-Rene wants to make a lump-sum deposit today such that at the end of every three months for the…

A: Given Information: Interest rate = 8.75% compounded semi-annually Lump-sum payment = $10,000 Payment…

Q: Jami Minard wants to receive an annuity of $5,000 at the beginning of each year for the next 10…

A: Periodic Payment = $5,000 Time Period = 10 years Interest rate = 7%

Q: If I would like to have $250,000 in my savings account after making contributions for 30 years, what…

A: Present Value = Monthly Contributions * PVAF ( Monthly Rate, number of Months )

Q: How much should John save today if he wishes to obtain n$ 547.00 in 5 years time? He expects to earn…

A: John should save today if he wishes to obtain n$ 547.00 in 5 years time if he expects to earn 3%…

Q: How much does Steve need to invest today, If he wants to have $50,000 in 15 years? He opens an…

A: Present Value = Future Value / (1+r)^n Where, r = rate of return per period i.e. 7.8%/12 = 0.65% or…

Q: Your friend Anne is planning to invest $700 each year for four years and will earn a rate of 6…

A: Given information, Annuity Amount = $700 Time Period = 4 years  Interest rate per year = 6%

Q: Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  FV = $80,000 n = no. of compounding period 10*12…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $5,300 of…

A: Calculate the present value of annuity as follows: Present value = Payment *(1-(1+rate)^-years)/Rate…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,000 of…

A: RATE 15.25% YEARS 24 PMT (MONTHLY PAYMENT) 6000 FUTURE VALUE $0 FIRST PAYMENT IMMEDIATE…

Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per…

A: Using excel PV function

Q: Your mother has an annuity that will give her monthly payments for 13 years. She tell you it is…

A: The present value of annuity due is calculated with the series of annuity payments which is…

Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could eam a…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: How long would it take for Nico to save an adequate amount for retirement if he deposits R40,000 per…

A: Annual deposit (P) = R40,000 Interest rate (r) = 12% Accumulated amount (FV) = R1,000,000 Period in…

Q: Susan Orman wants to pay $1,500 semiannually to her granddaughter for 10 years for helping her…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,100 of…

A: Immediate annuity payments are brought by investors by paying company in lump sum. Formula for…

Q: Tony wants to have $10,000 in 10 years after investing in an account that earns 4.6% compounded…

A: Future value is $10,000 Time period is 10years Interest rate is 4.6% Compounded monthly   To find:…

Q: annuity.he plans to deposit $500 into this account each month at 2.4 % annual interest compounded…

A: in this problem we have to find out future value FACTOR and from that we get future value.

Q: Donald Johnson has just given an insurance company $20,000. In return, he will receive an annuity of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Jami Minard wants to receive an annuity of $5,000 at the beginning of each year for the next 10…

A: Using the present value function in excel

Q: Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be…

A: Present value: The money having at present has more value than receivable in future. Formula: FV =…

Q: you want to have $10,000 in 5 years and can earn 3.2% annually. How much must you deposit today to…

A: Given Information Future Value =$10,000 Time Period = 5 years Interest rate = 3.2% annually

Q: Your aunt is planning to invest in a bank CD that will pay 7.5% interest semi annually. If she has…

A: SEMI ANNUAL INTEREST RATE  (7.50%/2) 3.75% PERIOD (4*2) 8 PRESENT VALUE $5,000 PMT 0

Q: Charlie wants to retire in 15 years, and he wants to have an annuity of $50,000 a year for 20 years…

A: Annuity refers to a series of payment made at a regular interval of time. We need to use the concept…

Q: Carlo Aldric wants to have P40,000 per year for 15 years during his retirement. What amount would…

A: Annual amount (P) = 40,000 Interest rate (r) = 5% Period (n) = 15  Years

Q: If you desire to have $10,000 for a down payment for a house in five years, what amount would you…

A: Calculation of Amount to Deposit Today:The amount to deposit today is $7,835.26.Excel Spreadsheet:

Q: The Lee family wants to save money to travel the world. They plan to invest in an ordinary annuity…

A: Using excel PMT function

Q: Bob purchases an annuity that will pay him $10,000 a year for the next 15 years starting a year from…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…