Jennifer opted for the plan that will pay her $ 52,000 annually for 15 years. The cash will be paid at the end of each year Required A. Assuming that the interest will remain at 6.8 % constant over the whole period , how much will the insurance company disburse at the end of the 15 years of annuity payment to Jennifer? [ordinary annuity] B. If the payment of the cash flow is done in the beginning of the period , what will be the sum for the insurance company will disburse? [interest rate changes to 7.5%] C. If Jennifer is supposed to invest a sum at the beginning of the retirement in the annuity fund of the insurance , calculate the sum she has to give to the company if Payment is received at the end of each period and the interest rate is 4.8% Payment is done at the beginning of each period and the interest rate is 5.8% [ Annual payment = $52,000 and period is 15 years]
Jennifer opted for the plan that will pay her $ 52,000 annually for 15 years. The cash will be paid at the end of each year
Required
A. Assuming that the interest will remain at 6.8 % constant over the whole period , how much will the insurance company disburse at the end of the 15 years of
B. If the payment of the cash flow is done in the beginning of the period , what will be the sum for the insurance company will disburse? [interest rate changes to 7.5%]
C. If Jennifer is supposed to invest a sum at the beginning of the retirement in the annuity fund of the insurance , calculate the sum she has to give to the company if
- Payment is received at the end of each period and the interest rate is 4.8%
- Payment is done at the beginning of each period and the interest rate is 5.8%
[ Annual payment = $52,000 and period is 15 years]
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