Kenneth decides to put away an amount of R400,00 for 15 years, at the end of every month, towards a retirement annuity that earns interest at 10% per year, compounded monthly. Determine the present value of the annuity?

Q: Shawn purchases a retirement annuity that will pay him $1,000 at the end of every six months for the…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She…

A: Given data; rate of interest = 4% payment after retirement= $20,000 number of years after retirement…

Q: Adam purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Semi Annual Payment  $              1,500.00 Time Period (years) 8 Interest rate 4% Monthly…

Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…

A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate

Q: John and Rosamond want to retire in 15 years and can save $110 every three months. They plan to…

A: Individuals save for retirement using various instruments in order to have a sufficient amount…

Q: Janice and Terry Van Dyke have decided to establish a quarterly ordinary annuity of $8,000 for the…

A: Ordinary annuity refers to the periodic series of payments that an investor makes into an investment…

Q: a) How much is in your account on retirement? b) Suppose you set up your account as a perpetuity on…

A: “Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Bill Jones plans to deposit $2100 at the end of every 6 months for the next 20 years into an annuity…

A: Calculation of the total value of the annuity at the maturity is shown below: Hence, the total…

Q: e). In which account will he have more money and by how much?

A: Regular annuity: Number of periods = 32 * 4 = 128 Quarterly rate = 7.3% / 4 = 1.825% Future value =…

Q: Gary decides to set up a retirement fund by depositing $182 at the end of each week for 17 years.…

A: Calculation of Amount at the end of 17 years:To calculate the amount at the end of 17 years, the…

Q: A relative wills you an annuity paying $1000 per quarter for the next 4 years. If money is worth 12%…

A: An annuity is a financial arrangement that involves a series of fixed payments at equal time…

Q: Hamad will receive the following payments at the end of the next three years: AED 40,000, AED…

A: Given: Year 1 cash flows = AED 40,000 Year 2 cash flows = AED 50,000 Year 3 cash flows = AED 65,000…

Q: Sarai is planning to save $200 each month in an ordinary annuity that earns 3% interest compounded…

A: GIVEN, A=$200 R=3% M=12 N=10

Q: A son will receive 3000 pesos at the beginning of each 3 months for 4 years. What is the sum of this…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

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: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: Payout annuity is the amount that an investor receives at a regular interval after a certain period…

Q: An individual's salary is now $50,000 per year and he anticipates retiring in 30 more years. If his…

A: The amount which will be required at the time of retirement is that amount which a person expects to…

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: Freya plans to invest $1,600 every six months for 25 years. How much will this investment be worth…

A: Given information: Investment every 6 months : $1,600 Time period : 25 years Rate of interest : 8.2%

Q: Manuel is preparing for an income fund for his retirement. He wants to receive P 15 500 at the…

A: Let the amount to deposit now = X Monthly payout (M) = P 15500 n = 25 years = 300 months r = 10.5%…

Q: Karen deposits 300 each month into an annuity that pays 8% annual interest at the end of each year.…

A: Future value of annuity =PMT [{(1+i) n-1}/i]*(1+i) Where i=periodic interest rate n=number of…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…

A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%

Q: open an annuity with $5,200.00 and makes monthly payments of $270.00 paid at the end of each month…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Kyla wants to have an annuity payment of $400, at the end of each 6 months. Use the appropriate…

A: Amount of Annuity payment(PMT) is $400 Time period 14 years or 14*2 = 28 semi- annual periods…

Q: Connie wants to have an annuity payment of $2,250 at the END of every three months. How much should…

A: Present value of annuities will give what is cash amount to be paid today.

Q: Mr. Handsome would like to accumulate $1 million in his pension fund. If the annual interest rate is…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Enrique already knows that he will have $300,000 when he retires. If he sets up a payout annuity for…

A: Given: Present value = $300,000 Interest rate = 4.55% Year = 15 Interest compounded = Quarterly

Q: Andrew would like a retirement income of $3,000 per month (beginning of month payments) for 19 years…

A: Retirement income is $3000 per month Time period is 19 Years Interest rate is 3.6%

Q: Andrew has an annuity that pays 4.4% annual interest compounded monthly and at the end of each month…

A: We need to calculate future value of annuity for the above question Formula: FV=PMTi(1+i)n-1 Where,…

Q: Cameron is saving for his retirement 22 years from now by setting up a savings plan. He has set up a…

A: Time period till retirement is 22 years Quarterly saving of $97.00 Time period of saving is 12 years…

Q: eposit $220 at the beginning of each of the 15 years, using interest at 7% per year, how much he…

A: Given information :

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: Kobe is retiring in 19 years, and wants to save some money. He will make bi-weekly deposits of…

A: Bi-weekly Deposit = $513.38 Time Period = 19 Years Interest Rate = 2.750% compounded semi-annually

Q: Jennifer's pension plan is an annuity with a guaranteed return of 4% per year compounded quarterly.…

A: A pension plan is a kind of retirement account that is being created by an individual who seeks…

Q: As part of her retirement planning, Mrs. Smith purchases an annuity that pays 16 % compounded…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Mr. Michael’s monthly insurance premium is ₱ 500.00, payable at the end of each month. His policy…

A: The worth of a present asset at some point in the future depending on a projected growth rate is…

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: Hank made payments of ​$205 per month at the end of each month for 30 years to purchase a piece of…

A: Annuity means a series of finite number of payments which are the same in size and made in equal…

Q: A is planning for her retired life. She has 10 more years of service. He would like to deposit 20%…

A: Present value of Annuity Annuity is a series of equal payment at equal interval over a specified…

Q: Me. Cruz plans to deposit for the education of his 5 years old son, 500 at the end of each month for…

A:

Q: Johan won an annuity that pays RM1000 every 3 months for 3 years. What is the present value of this…

A: Given, The annuity payment is RM 1000 Rate is 16% Term is 3 years. Frequency - quarterly, which…

Q: Abby plans to deposit $100 at the end of every quarter for the next 10 years into an annuity that…

A: The computation of the value at maturity as follows:

Q: David wants to retire in 40 years. If he puts away $300 per quarter, at the end of each quarter,…

A: Time value of money states that the value of the amount of money today is more than the value of the…

Q: Bill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What…

A: Future value table: This table shows the future amount of investment at specific rate and periods.…

Q: You plan to invest $2, 000 each year in a retirement account for the next 20 years. Calculate the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Rickey would like to have $2500 per month for 20 years after retirement. How much should he save in…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Mr. Lucy can invest $150 per month in an annuity for 2 years. What interest rate must she invest at…

A: FV= $5,000 Annuity amount= $150 per month= $1,800 per annum n= 2 years r= ?

Q: Jennifer's pension plan is an annuity with a quaranteed return of 5% per year (compounded monthly).…

A: Monthly Deposit = 300 Time period of saving (N) = 45 years i.e. 540 months Time Period of Pension…