Lisa purchased an annuity that had an interest rate of 3.00% compounded semi-annually. It provided her with payments of $2,500 at the end of every month for 7 years. If the first withdrawal is to be made in 4 years and 1 month, how much did she pay for it?

Q: how long in years and months will she receive the payments

A: RRSP: RRSP stands for Registered Retirement Savings Plan. RRSP is a kind of retirement savings and…

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: 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: How much money did he have for retirement?

A: Future Value of annuity = A= R* (1+rm)n-1rmwhereA - future valueR - periodic paymentr - nominal…

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A: Present value of annuities will be the equivalent value of future cash flow to be received in the…

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A: Future value of annuity can be calculated with the help of annuity table given in the question.…

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A: Future value of investment includes the amount deposited and interest being accumulated over the…

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A: Formula  Annual payment = FV/((1+i)n-1)/i Where FV - Future value i.e. $98000 i - Interest rate i.e.…

Q: Alice owned an annuity which had level annual payments for twelve consecutive years, the first of…

A: Time values tell that money received today is of more worth than that of receiving the exact amount…

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A: In this we need to calculate the present value of annuity.

Q: Karen deposits 700 each month into an annuity that pays 12% annual interest at the end of each year.…

A: solution given Deposits each month (p) 700 Rate of interest (r) 12% Time period…

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

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A: Future value represents the future worth of existing cash flows. It is determined by compounding…

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A: A concept through which it is studied that the current worth of money is higher than its future…

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A: Total number periods in annuity are 20 Purchase price of annuity is $100,000 Effective interest rate…

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

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A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

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A: Annuity means no. of finite payments which are the same in size and made in equal intervals. Person…

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A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

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A: in this we have to calculate future value FACTOR and than future value from that.

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A: The future value is the future worth of the amount that will be paid or received in the future.

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A: The compounded value concept is an important technique of the time value of money. It determines the…

Q: The Alavis have decided to invest in a their Son. college fund for They invested $50,000 deferred…

A:

Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 5…

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

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A: The term "annuity" depicts a series of cash flows with equal amounts occurring at equal time…

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A: Amount invested annually “PMT” = $2500 Number of years of investment “n” = 8 Annual rate “r” = 8%…

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A: The future value can be calculated using the FV Function in excel. FV = (RATE, NPER, PMT, PV, TYPE)…

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A: A regular series of fixed payments that are made or received at equal time intervals is term as the…

Q: Since the birth of her daughter, 20 years ago, William has deposited $50 at the beginning of every…

A: Time period is 20 years Monthly deposit is $50 Interest rate for first 8 years is 5.10% Interest…

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A: Honor code: Hi, there, thanks for posting the question. As per our Q&A honor code, we must…

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A: Part of each $11,000 payment represents a return of the original $87,450 investment, plus $22,550…

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A: Ordinary Annuity: These are payments made at the period end regularly for a period of time. The size…

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A: The present value of a prospective amount of money or series of payments with a predetermined…

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A: The present value of annuity refers to the current value of the future payments from the payment…

Q: Sehar has accumulated $245,000 in her retirement savings plan. When she retires in exactly 4 years…

A: Accumulated saving (A) = $245000 n = 4 years = 16 quarters r = 6% per annum = 1.5% per quarter Let…

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A: Inputs Borrowing Amount or Loan Amount = 5000

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A: Case 1 ) Periodic Payment = $4500 annually Interest Rate = 9% p.a compounded annually. Case 2 )…

Q: How much money did he have for retirement?

A: Future Value of Annuity: It is the future worth of the present annuity stream cash flows and is…

Q: Harleen has deposited​ $125 at the end of each month for 13 years at​ 4.68% compounded monthly.…

A: Given the information in question Monthly deposit =$125 Interest rate =4.68%(monthly) ( I assume it…

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.