You pay $628 thousand to buy a 20-year annuity with annual payments
to be received at...
You pay $628 thousand to buy a 20-year annuity with annual payments
to be received at the end of each year. What is the annual payment
if the discount rate is 5.88%? Express your answer in $ thousands,
round to the nearest $0.1 thousand. E.g., if your answer is
$50,583, record it as 50.6.Blank 1. Calculate the answer by
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Expert Solution
What is the annual payment if the discount rate is 5.88%
1. A 20 year annuity has annual payments which increase by $500
each year. The first payment is $10,500 on Jan. 1, 2018. The annual
effective interest is 1%. What is the value of the annuity on Oct.
1, 2017?
The answer should be $274,250.53 And I don't have more
information about this...this is how the problem looks like.
2. A loan is repaid with level installments payable at the end
of each half-year for 3(1/2) years, at a nominal...
You are offered a 12-year annuity of $10,000 annual payments.
However, the annuity begins in 8 years (you will not receive any
payments for 8 years, but will then receive $10,000 at the end of
each year for 12 years. If the discount rate is 5% per year
(compounded annually), what is the current value of the
annuity?
You are offered a 18-year annuity of $10,000 annual
payments.
However, the annuity begins in 7 years (you will not receive any
payments for 7 years, but will then receive $10,000 at the end of
each year for 18 years. If the discount rate is 6% per year
(compounded annually), what is the current value of the
annuity?
How much would you be willing to pay for a 10-year ordinary
annuity if the payments are $500 per year and the interest rate is
6.25% compounded annually ?
a 20-years annuity-immediate has annual payments . The
first payment is 100 and subsequent payments are increased by 100
until they reach 1000. The remaining payment stay at 1000. the
annual effective intersst rate 7.5% . What is the coast of this
annuity?
-Q-
You are offered an annuity product that will pay you $36,000 per
year for 20 years in retirement. If you believe the appropriate
discount rate is 8%, then what is the annuity worth to you today?
Round to the nearest 0.01.
Assume you are to receive a 10-year annuity with annual payments
of $800. The first payment will be received at the end of year 1,
and the last payment will be received at the end of year 10. You
will invest each payment in an account that pays 7 percent
compounded annually. Although the annuity payments stop at the end
of year 10, you will not with draw any money from the account until
20 years from today, and the...
An annuity-immediate with 20 annual payments starts with a
payment of 300 and each payment thereafter is 25 more than the
previous payment. The effective annual interest rate is 5%.
Calculate the present value. Be sure to include the appropriate
equation or expression of value that you use. Instead of a 20 year
annuity-immediate, it is a perpetuity. What would the present value
be in that case?
Assume you can either take a 20-year annuity that will first pay
you $17,000 and
increase by 2.4% each year, or a perpetuity that will pay you
$15,500 the first year
and increase by 2% each year. Assuming the interest rate of 11% and
that the
interest rate will compound annually, which one has a higher
present value?
Explain.
You wish to purchase a 15-year deferred annuity (payments start
now) that will last 20 years and generate $3000 per month for those
20 years while growing in value at 3% during the 20-year payout
period. Assuming the discount rate for all cash flows is 7%
What is the price you should pay for this 15-year deferred, 3%
growing 20-year annuity? in creating your answer, place a spinner
on all key rates (growth and discount)