Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She would like to retire with a pension of $20,000 per quarter for 15 years. If she works 27 years before retiring, how much money must she and her employer deposit each quarter?

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A:

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A: Computation:

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

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A: Computation:

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Q: Meg's pension plan is an annuity with a guaranteed return of 5% per year (compounded quarterly). She…

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Q: Gary decides to set up a retirement fund by depositing $300 at the end of each week for 29 years.…

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A: To Find: Monthly Payout or how much she will receive per month

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A: The cash flows discussed here are annuities where an equal amount is paid each period.

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

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A: Total amount she got = 5400*20*12 = 1296000

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A:

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

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Q: Frank plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: This is a case of ordinary annuity. It means that deposits are being made at the end of the relevant…

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.