You have an endowment insurance policy that paid you a lump sum of $400,000. If you invest the sum at 6%, how much money can you withdraw in equal amounts at the end of each of 7 years?

Q: What will be the interest rate per interest period if convert to compounding monthly?     1.9967%…

A: Effective annual rate (EAR) refers to the rate of interest which is an outcomes of compounding…

Q: At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If…

A: In finance, a trust is considered as an arrangement between a third party, a trustee, and the…

Q: The will of Don José Luis, who has just died, specifies that the beneficiary of his 15,000,000.00…

A: Insurance Amount = 15,000,000 Interest Rate = 24%/12 = 2% per month Periodic Amount = 250,000…

Q: At the conclusion of each year, each participant made a deposit of 1500.35 into a sinking fund. What…

A: This is used in the case of a future annuity – suppose an equal sum of money is invested in the bank…

Q: Carl is the beneficiary of a $24,000 trust fund set up for him by his grandparents.  Under the terms…

A: Excel Spreadsheet:

Q: a. What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to…

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

Q: Brenda expects to receives Sh.50,000 at the end of each year for 5 years in a fund earning 10% per…

A: The present value of an annuity is a series of payments or receipts lasting for some specific…

Q: Your grandmother just died and left you $100,000 in a trust fund that pays 6.5% interest. You must…

A:

Q: Cody invested the profit of her business in an investment fund that was earning 2.25% compounded…

A: Given, The amount of withdrawal is $5000. Interest rate is 2.25% compounded monthly.

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: An annuity is a series of cash flows that involve an equivalent periodic amount over a specific time…

Q: Tara wishes to accumulate $29,000 in 5 years. Use the appropriate formula to find the sinking fund…

A: first thing is calculate semiannual interest rates and semiannual period and from table you can get…

Q: Your brother invested RM5,000 twenty years ago with an insurance company that paid him 5 percent…

A: Investment = RM 5,000 Time Period = 20 Years Interest Rate = 5%

Q: Bob has saved a total of ₱2,550,000.00 for retirement. He put the money in a mutual fund which pays…

A: We need to use annuity formula given below to calculate size of monthly withdrawal PMT…

Q: You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and…

A: a)  Computation of my account balance:

Q: Your uncle has $375,000 and wants to retire. He expects to live for another 25 years and to earn…

A: Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: Fund grant for each year = P120,000 for 5 years Grant each quarter = P30,000 for next 5 years  Grant…

Q: You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and…

A: Since, in this question fixed amount is invested each year. So, it is the question of annuity.…

Q: Your uncle has $375,000 and wants to retire. He expects to live for another 25 years, and he also…

A: The mathematical equation is:

Q: For her​ daughter's education, Georgina Harcourt has invested an inheritance in a fund paying 3.8​%…

A: Present Value of annuity refers to the value of regular payments of equal amounts at a specified…

Q: Mr Santos wants to get a lump sum of money when he retires at the end of 30 years. He then deposits…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A man who won 730,000 pesos in a lottery decided to place 50% of his winnings in a trust fund for…

A: A man won a lottery of worth = 730,000 pesos He invested 50% in trust funds for his son education =…

Q: who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800…

A: Prices increase each year by the rate of inflation and may grow to double from existing levels over…

Q: 4. Rodel decided to sell their farm and to deposit the fund in a bank. After computing the interest,…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: Having received a large inheritance, Jing-mei's parents wish to establish a trust for her college…

A: Future Value =$120,000 N = 7

Q: A wealthy donor wants to establish a scholarship that pays an award of $1,000 in perpetuity at the…

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

Q: Mercy receives the following cash flow from her rich uncle every year and she wants you to help her…

A: Definition of Present value of money: The money having today on hand has more value than having in…

Q: You are the beneficiary of a life insurance policy. The insurance company informs you that you have…

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

Q: New parents wish to save for thier newborn's education and wish to have $36,000 at the end of 18…

A: The computation of yearly payment and interest as follows: Working note: Hence, the interest is…

Q: Phoebe saved a total of $2 550 000 for her retirement. She invested the money in a mutual fund that…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Mr Santos wants to get a lump sum of money when he retires at the end of 30 years. He then deposits…

A: The interest rate is the amount charged by a lender to a borrower and is expressed as a percentage…

Q: .What was size of the investment in the fund if it was earning 5.50% compounded semi-annually?

A: Present Value of Perpetuity Due: It refers to the present worth of the annuity payments made for…

Q: For her daughter's university education, Carla Hackl has invested an inheritance in fund paying 9.2%…

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

Q: An inheritance of $120,000 is invested in a fund that earns 7.7% compounded semiannually. If this…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. Ordinary…

Q: A young man is the beneficiary of a trust fund established for him 18 years ago at his birth. If the…

A: Future value formula: Future value =present value×1+rmm×n where, r=rate m=frequency of compounding…

Q: Stacey deposits $ 4500 at the end of each year for 30 years into an investment fund which pays out…

A: Reinvestment is the practice of using dividends, interest, or any other form of the income…

Q: mployee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly.…

A: The present worth of fund is the equivalent value of fund today considering time and interest rate…

Q: money at the end of ten years

A: Future value is the amount of current assets at some future date on the basis of the assumed growth…

Q: Your grandmother just died and left you $40,000 in a trust fund that pays 6.5% interest. You must…

A: We need to calculate the annual withdrawal at the beginning of each year for 4 years after which…

Q: Mr. Crabapple wants to donate money now for an account that will allow a favored charity to make…

A: Annnuity at the end of each year from year 19 to 44 = $17,000 Time = 26 years Rate = 4.3% annually…

Q: A 1,000,000-trust fund was set up and to be used by an 8-year old nephew when he goes to college. In…

A:

Q: A couple received a $131,000 inheritance the year they turned 50 and invested it in a fund that…

A: Information Provided: Inheritance amount = $131,000 Interest rate = 6.4% compounded semi-annually…

Q: Tara wishes to accumulate $29,000 in 5 years. Use the appropriate formula to find the sinking fund…

A: Sinking fund is referred as the account which consists amount of money kept aside to pay off a debt.…

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Jeffrey invested the profit of his business in an investment fund that was earning 3.50% compounded…

A: FV = 0 N = 7*2 PMT = 5000 rate = (1 + 3.50%/12)^6 - 1 = 1.7628% use PV function in Excel