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the withdrawals that can be made at the end of each 7. With a present value of $135,000, what is the size of 7. With a present value of $135,000, what is the size of 50,000 quarter for the next 10 vears if money is worth 6.4% 40,000 + compounded quarterly? 8. If $88,000 is invested in an annuity that earns 5.8% 30,000- ollars

the withdrawals that can be made at the end of each 7. With a present value of $135,000, what is the size of 7. With a present value of $135,000, what is the size of 50,000 quarter for the next 10 vears if money is worth 6.4% 40,000 + compounded quarterly? 8. If $88,000 is invested in an annuity that earns 5.8% 30,000- ollars

Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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#7 please explain thoroughly
7. With a present value of $135,000, what is the size of the withdrawals that can be made at the end of each quarter for the next 10 years if money is worth 6.4% 50,000 + compounded quarterly? 8. If $88,000 is invested in an annuity that earns 5.8% 40,000 + 30,000 + compounded quarterly, what payments will it provide at the end of each quarter for the next 5 years? 9. A personal account earmarked as a retirement supple- ment contains $242,400. Suppose $200,000 is used to establish an annuity that earns 6% compounded quar- terly and pays $4500 at the end of each quarter. How long will it be until the account balance is $0? 10. A professional athlete invested $2.5 million of a bonus in an account that earns 6.8% compounded semiannually. If $120,000 is to be withdrawn at the end of each six months, how long will it be until the account balance is $0? 20,000 - 10,000 ANNI 15. 16. 11. Suppose that a 25-year government bond has a matu- rity value of $1000 and a coupon rate of 6%, with cou- pons paid semiannually. Find the market price of the bond if the yield rate is 5% compounded semiannually. Is this bond selling at a discount or at a premium? 12. Suppose that a 10-year corporate bond has a maturity value of $25,000 and a coupon rate of 7%, with coupons paid semiannually. Find the market price of the bond if the yield rate is 8% compounded semiannually. Is this bond selling at a discount or at a premium? gronh that compares tbe present Dollars
Transcribed Image Text:7. With a present value of $135,000, what is the size of the withdrawals that can be made at the end of each quarter for the next 10 years if money is worth 6.4% 50,000 + compounded quarterly? 8. If $88,000 is invested in an annuity that earns 5.8% 40,000 + 30,000 + compounded quarterly, what payments will it provide at the end of each quarter for the next 5 years? 9. A personal account earmarked as a retirement supple- ment contains $242,400. Suppose $200,000 is used to establish an annuity that earns 6% compounded quar- terly and pays $4500 at the end of each quarter. How long will it be until the account balance is $0? 10. A professional athlete invested $2.5 million of a bonus in an account that earns 6.8% compounded semiannually. If $120,000 is to be withdrawn at the end of each six months, how long will it be until the account balance is $0? 20,000 - 10,000 ANNI 15. 16. 11. Suppose that a 25-year government bond has a matu- rity value of $1000 and a coupon rate of 6%, with cou- pons paid semiannually. Find the market price of the bond if the yield rate is 5% compounded semiannually. Is this bond selling at a discount or at a premium? 12. Suppose that a 10-year corporate bond has a maturity value of $25,000 and a coupon rate of 7%, with coupons paid semiannually. Find the market price of the bond if the yield rate is 8% compounded semiannually. Is this bond selling at a discount or at a premium? gronh that compares tbe present Dollars
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