Your uncle gives you $92,000 as a gift. Rather than give you a lump-sum, your uncle structures the gift as an annuity that pays $16,250 per year. You will receive the first payment one year later. If the annual interest rate is 12%, how many years does it take for you to receive all the payments for this gift?

Q: Ms. Cristiana Piccini is valuing an investment that pays her $27,000 per year for the first ten…

A: Calculation of Value of Investment: Excel Spreadsheet:

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of…

A: The cost to buy an annuity today is calculated by discounting the annuity values with the present…

Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…

A: Given: Future value = $50,000 Interest rate = 4.5% Years =10

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A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Nine  years  from  now,  Sam  wants  to  have  an  amount  available  to  deposit  into  an  account…

A: ANSWER GIVEN ON THE NEXT SHEET

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A: The value which shows the equivalent worth of payment that is expected to be realized in future by…

Q: Hamad will receive the following payments at the end of the next three years: AED 40,000, AED…

A: Given: Year 1 cash flows = AED 40,000 Year 2 cash flows = AED 50,000 Year 3 cash flows = AED 65,000…

Q: Mike joins a savings program where he deposits $1000 at the begint he will earn a perpetuity paying…

A: Here,

Q: . Your grandmother has established a trust fund that pays you $3,500 each year for 15 years. upon…

A: Given: CF=$3500t=15 yearsr=7% i.e 0.07

Q: Your aunt promises to gift you $1,500 now, $1,700 one year from now, $1,900 two years from now, and…

A: The future value is reflective of the value of cash flows in the future after compounding them using…

Q: You deposit $13,000 annually into a life insurance fund for the next 10 years, after which time you…

A: The future value is the value of the amount in future that has to be paid or received at future.

Q: Sam Robinson borrowed $10,000 from a friend and promised to pay the loan in 10 equal annual…

A:

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…

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A: The provided information are: Particular Value RATE 5.25% YEARS 19 PMT (MONTHLY PAYMENT)…

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: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…

A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%

Q: Denise has $180,983 saved for her upcoming retirement and will make no further contributions. She…

A: Interest rate = 5% compounded semiannually Annuity amount (A) = $5000 per quarter for 20 years (80…

Q: individual earns an extra $1000 each year and places this money at the end of each year into an…

A: Solved using Financial Calculator  PMT = -1000 I/Y = 7.5 N =50 CPT FV = $ 482,529.95

Q: Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: The annuity payments that are made at the beginning of the year are called annuity due and the ones…

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

A: Annuity refers to the series of payments at regular intervals over a period of time. Future value of…

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

A: Calculate the present value of annuity as follows: Present value = Payment *(1-(1+rate)^-years)/Rate…

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A: Growing perpetuity: These are the cashflows that grow forever and doesn't remain fixed. They keep…

Q: June Watson is contributing $2,000 each year to a Roth IRA. The IRA earns 4.4% per year. How much…

A: Ordinary annuity: In an ordinary annuity, we have to make equal payments at the end of consecutive…

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

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

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: Will Smith will receive $80,000 5 years from now, from a trust fund established by his father.…

A: Workings: Future value amount = $ 80000 Time period = 5 years. compounded semi annually  = 5 years x…

Q: Bill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of the next…

A: solution Bill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of…

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: Your brother has asked you for a loan and has promised to pay back $7,750 at the end of three years.…

A: Present value is the worth of amount in current time that is expected to be receive in some future…

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: 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: For your 21st birthday, your grandfather offers you a gift of $1,000 today. However, you have the…

A: Given two alternatives are: Receiving $1500 after three years Receiving $3000 after five years…

Q: What is the maximum amount this couple can contribute to a Roth IRA?

A: Roth IRA is a specific retirement account in which the individual has to pay taxes on the amount…

Q: Bill Baxter has $25,000 to invest for a year.  He can lend it to his sister, who has agreed to pay…

A: given, simple interest to sister P = $25,000 r= 10% n = 1 retirement plan: P= $25000 r=6% m=4 n=1

Q: April paid $144,000 for an annuity that would immediately pay $1,000 per month. Her life expectancy…

A: Income that is not subject to income taxes, such as municipal bonds or coupons, is referred to as…

Q: Can you help me work out this problem in detail?   Ben wants to receive $6,000 a year for 10 years.…

A:

Q: Mdm. Chan, a retiree, purchased an annuity product with a lump sum of $200,000. The annuity promises…

A: An annuity is the fixed payment that an investor receives from an investment or fixed deposits made…

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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: Gabrielle just won ​$2.7 million in the state lottery. She is given the option of receiving a of…

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Q: A man has deposited ₱50 000 in a retirement income plan with a local bank. This bank pays 9% per…

A: The provided information are: Deposit = 50,000 Rate of interest = 9% = 0.09 Time period = 12

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 30 and…

A: Question is based on the concept of Annuity

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A: We need to calculate future value of investment by using this formula FV = PV(1+i)n where FV =Future…

Q: Arnie agrees to contribute $2,300 to the road fund at the end of each year for the next 12 years.…

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Q: Jane bought an audio system and agreed to pay for the purchase by making four equal annual…

A: The total cash payments of $4,200 are the sum of the total amount of installment paid in 4 years,…

Q: Bob purchases an annuity that will pay him $10,000 a year for the next 15 years starting a year from…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…