Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this annuity and contribute $10, 000 annually for 10 years, how much money will be in the annuity after 10 years? Enter your answer rounded to the nearest hundred dollars and omit the dollar sign and comma (For example $122, 570.21 should be input as 122600.) Provide your answer below:

Q: You may purchase an annuity that will pay you 300000 in income per year starting one year from now…

A: Given, Payment amount (PMT) = 300,000 Number of payments (n) = 22 Interest rate (i) = 4%

Q: After carefully exmaining your budget, you determine you can manage to set aside $370 per year. You…

A: Introduction: Contribution to an annuity: It refers to the series of payments made to have the…

Q: An investment of $100,000 today will make advance quarterly payments of $4,000. If the annuity can…

A: We need to use NPER formula in excel to calculate number of periods to depleted annuity.  Formula is…

Q: What’s the present value of a perpetuity that pays $1,000 per year beginning1 year from now, if the…

A: Computation:

Q: If you put 45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual cash…

A: Present Value = 45,000 Rate = 6.4% Time period = 15 ye

Q: After carefully exmaining your budget, you determine you can manage to set aside $350 per year. You…

A: Introduction: Future Value of Annuity Due: Future value: The value of an investment made today, with…

Q: f you wish to save $875,000 in three years, how much would you need to deposit at the start of each…

A: Principal amount invested to save $ 875000 is $ $ 744,941 so to start depositing at the beginning of…

Q: Your investment advisor says you can buy an annuity now that will pay you $25,000 per year for the…

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

Q: Suppose you put $ 525 a month for retirement into an annuity earning 5.25% compounded monthly. If…

A: An investment decision may involve regular cashflows of equal amount during successive years in…

Q: a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of…

A: In this we have to calculate present value FACTOR of annuity and from that we can  calculate the…

Q: Mark Ventura has just purchased an annuity to begin payment at the end of 2011 (that is the date of…

A: Factor for a 10 year annuity when the approximate discount rate is 13%(5.426)The value of the…

Q: Suppose that an annuity will provide for 20 annual payments of 1240 dollars, with the first payment…

A: Total number of payments "N" is 20 Annual payments "PMT" is $1,240 Interest rate is 8.8% convertible…

Q: Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per…

A: Since you have not mentioned the specific question we will just answer the first question in case…

Q: What will be the value in your account at the end of Year 30?

A: Future Value of Annuity: It represents the future worth of the annuity payments made for a given…

Q: A perpetuity will make its first payment in 20 years. The first payment will be $5,000, and future…

A: Perpetuity means a series of infinite numbers of payments of the same size occurs in an equal…

Q: Mark Ventura has just purchased an annuity to begin payment two years from today. The annuity is for…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: If you put up $30,000 today in exchange for a 6.50 percent, 15-year annuity, what will the annual…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: You want to buy an ordinary annuity that will pay you $4,000 a year for the next 20 years. You…

A: Ordinary Annuity = 4000 N = 20 years Interest Rate = 8%

Q: For $150,000, Continental Life Insurance Co. will sell a 20-year annuity paying $1200 at the end of…

A: An annuity is usually used in the retirement funds where fixed future amounts are paid in exchange…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Present value is the current value of a future amount that is to be received or paid out.     Future…

Q: You begin saving for your retirement by investing $640 per month in an annuity with a guaranteed…

A: The question is based on the concept of future value of growing annuity with annual growth rate, the…

Q: Suppose you are going to receive $17,500 per year for five years. The appropriate interest rate is…

A:

Q: If you buy an ordinary annuity that will pay you 4,000 a year for the next 20 years with an annual…

A: Annual payment (P) = 4000 Number of annual payments (n) = 20 Annual interest rate (r) = 8%

Q: Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

A: Present Value of Annuity=Annuity×1-11+ratetimerate

Q: You purchase an annuity that will pay you $100 every three months for five years. The first $100…

A: FORMULA FOR PRESENT VALUE OF ANNUITY (FVA): PVA=A×1-1+rmm×nrm×1+rm where, A=annuity r=rate…

Q: You are considering an annuity which costs $120,000 today. The annuity pays $13,255 a year at an…

A: Given: Present value of Annuity=$120000Annuity =$13255Interest rate (r)=9.75%

Q: Suppose for an annuity due, you want to have S30,000 in the bank after 20 years. Assuming you make…

A: Time value of money is a concept that helps in determining the value of future cash flows…

Q: You may purchase an annuity that will pay you ¥300,000 in income per year starting one year from now…

A: Annual income (P)= ¥300,000 Annual interest rate (R) = 4% Period (N) = 22 Years

Q: You are planning to make monthly deposits of $450 into a retirement account that pays 10 percent…

A: An annuity is a series of equivalent periodic cash flows for a specific duration. The future value…

Q: If you put up $37,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual…

A: Time value of money states that the worth of money in present is always more than that of future…

Q: An insurance company is offering to sell an annuity for $20,000 cash. In return the firm will…

A: given, present value of annuity = $20,000 first payment =$1100

Q: Suppose you invest in an annuity that pays 5% annual interest, compounded quarterly. If you…

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

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…

A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5

Q: You are considering an annuity that costs $91,288 today. The annuity pays $6,500 a year at an annual…

A: The length of the annuity will depend upon the costs of the annuity, the periodic payment, and the…

Q: If you put up $73,000 today in exchange for an annual 6.75 percent, 18-year annuity, what will the…

A: The annual cash flow can be computed with the help of present value of annuity.

Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: Annuity means number of payments made at equal interval of time and equal in size. Ordinary annuity…

Q: What is the present value of a perpetuity that pays $50 annually and has an annual rate of return of…

A:

Q: Suppose payments will be made for 6 1/4 years at the end of each month from an ordinary annuity…

A: given, n=6.25 m=12 r=4.25% PVA =$46,000

Q: How much will you need to invest annually to reach a savings goal of $300,000 at the end of 25…

A: n=25r=5%FV=300000

Q: You want to invest 8000$ at an annual interest rate of 8% that compounds annually for 12 years.…

A: The future value of money concept is a fundamental concept of financial management. The future value…

Q: Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this…

A: In finance annuity refers to that series of payments that are made/received at regular intervals.…

Q: If you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual…

A: Given,Exchange rate (rate) = 5.1%Time Period (nper) = 15 Years (Annuity)Initial Outflow (pv) =…