You have just won the lottery and took a lump sum payout. After talking with a financial adviser you will make an lump sum deposit into an annuity that pays 3.3%, compounded semi-annual. If you will defer payments for 31 years and then receive payments at the end of every six months in the amount of $16,000.00 for 15 years. How much must you put into the annuity today to make this happen? You must deposit $ from your lottery winnings.

Q: Roland just put RM1,000 in the fixed deposit and intend to leave it there for 10 years. If the bank…

A: Formula Future value = PV*(1+(i/c))n*c Where PV = Present value i.e. RM1,000 i = Interest rate i.e.…

Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…

A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate

Q: To find the value of an annuity due, you will multiply the value of the ordinary annuity by…

A: Present value is the current worth of the future payments that are to be received. As per time value…

Q: You would like to have ​$   59,000 in   15 years.  To accumulate this​ amount, you plan to…

A: The concept of time value of money tells us that worth of money keeps on changing with passage of…

Q: You would like to have $8,000.00 in 15 years for a special vacation following graduation by making…

A: Using the PMT function in excel

Q: To save for a down payment on a home, you invest in an annuity that pays 7.0% annual interest,…

A: The interest earned on the annuity can be calculated with the help of future value of annuity…

Q: Suppose you invest in an annuity that pays 6% interest, compounded annually. You contribute $4,500…

A: Given information: Annuity payment is $4,500 Interest rate is 6% compounded annually Number of years…

Q: An insurance annuity offers to pay you $1,000 per quarter for 20 years starting immediately. If you…

A: Excel Spreadsheet:

Q: You want to have $2,000,000 in your savings account seven years from now, and you're prepared to…

A: Given: Future Value of investment "FV" = $2000000 Number of payments "n" = 7 Interest rate "r" =…

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: Payout annuity is the amount that an investor receives at a regular interval after a certain period…

Q: You would Ilike to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…

Q: You would like to have $15,000 in 4 years for a down payment on a home. How much would you need to…

A: Future value or amount required for down payment = FV = $15,000 Semiannual period of annuity = t = 8…

Q: Jean-Rene wants to make a lump-sum deposit today such that at the end of every three months for the…

A: Given Information: Interest rate = 8.75% compounded semi-annually Lump-sum payment = $10,000 Payment…

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Yearly annual income = $15,000 Interest rate = 4%   NOTE: As per our…

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Annual income = $15,000 Interest rate = 4%   NOTE: As per our policy, we…

Q: Suppose you just won the state lottery, and you have a choice between receiving $3,600,000 today or…

A:

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,000 of…

A: RATE 15.25% YEARS 24 PMT (MONTHLY PAYMENT) 6000 FUTURE VALUE $0 FIRST PAYMENT IMMEDIATE…

Q: You need to have 80,000 at the end of 7 years. To accumulate this sum, you have decided to save a…

A: Time Period = 7 years Future Value Required = 80,000 End of period deposits Interest Rate = 11%…

Q: Cheryl Wilcox is planning for her retirement, so she is setting up a payout annuity with her bank.…

A: Amount to be saved monthly = Total future amount needed / Present value annuity factor for the…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: It can be solved using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The interest…

Q: Mr. Romeo wants to deposit a sum of money today that will give an ordinary annuity paying 12,000…

A: The value of annuity can be computed as sum of present value of all withdrawals

Q: annuity offers to pay you $1,000 per quarter for 20 years. If you want to earn a rate of return of…

A: Answer: Calculation of the maximum amount that you are willing to pay as a lump sum today to obtain…

Q: You are offered an annuity that will pay $11,000 per year for 24 years (the first payment will occur…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: The annuity is a series of cash flow wherein an equal amount is paid every period.

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 2% interest…

A: Future value (FV) refers to a means of estimating how much an asset or cash's present value (PV)…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,100 of…

A: Immediate annuity payments are brought by investors by paying company in lump sum. Formula for…

Q: deposits

A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $5,300 of…

A: The today’s cost can be calculated using the PV function of excel. Inputs of the PV function will…

Q: Boris wants to save $27,000.00 for the down payment on a house. He already has $2,700.00, and he…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Donald Johnson has just given an insurance company $20,000. In return, he will receive an annuity of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: petual annuity that pays 2% interest compounded monthly. The prize money is paid out in fixed…

A: Perpetual annuity is a concept of infinite payment of cash flow series. Here the total amount of…

Q: You are saving up for a down payment on a house. You will deposit P600 a month for the next 24…

A: Future value means the value at some future point of time. The future value can be calculated of an…

Q: You are working for a finance firm and a client comes to you and wants to know how much money they…

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

Q: Brianca plans to save $5,000, $1,000, and $42,000 a year over the next three years, respectively.…

A: Time value It tells that value received today has more value than that of receiving the same amount…

Q: An individual needs $12,000 immediately as a down payment on a new home. Suppose that he can borrow…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You now know the power of compound starting to save for your retirement as early as possible. You…

A: In arithmetic growing annuity amount each year increase by fixed amount but this amount grow much…

Q: I want to save for a vacation. My plan is to put $200.00 each month into an ordinary annuity that…

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

Q: It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your…

A: The future value is the value of the equal deposits at the end of the deposit period. The…

Q: Tom wants to put aside $120 at the end of each month into an account earning 6% compounded monthly,…

A: Here we have to use the concept of annuity and concept of time value of money to find the present…

Q: If you desire to have $10,000 for a down payment for a house in five years, what amount would you…

A: Calculation of Amount to Deposit Today:The amount to deposit today is $7,835.26.Excel Spreadsheet:

Q: Suppose that you would like to have $25,000 to use as a down payment for a home in five years by…

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

Q: The Nelson family wants to save money to travel the world. They plan to invest in an ordinary…

A: Annuity means a series of finite number of payments which are the same in size and occurred at equal…