Question
In: Finance
Calculate the following: (LG 15-2) a. What is the amount of the annuity purchase required if...
Calculate the following: (LG 15-2) a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $240,000 for 20 years? Assume that the annuity will earn 7 percent per year. b. Calculate the annual cash flows from a $2.5 million, 20-year fixed-payment annuity earning a guaranteed return of 7 percent per year if payments are to begin at the end of the current year. c. Calculate the annual cash flows from a $2.5 million, 20-year fixed-payment annuity earning a guaranteed return of 7 percent per year if payments are to begin at the end of year 6.
PLEASE answer in excel format
Solutions
Expert Solution
SEE THE IMAGE. ANY DOUBTS,
FEEL FREE TO ASK. THUMBS UP PLEASE
jeff jeffy answered 2 years agoRelated Solutions
Problem 15-1 (LG 15-2) a. What is the amount of the annuity purchase required if you...
Problem 15-1 (LG 15-2)
a. What is the amount of the annuity purchase
required if you wish to receive a fixed payment of $230,000 for 20
years? Assume that the annuity will earn 10 percent per year.
b. Calculate the annual cash flows (annuity
payments) from a fixed-payment annuity if the present value of the
20-year annuity is $2 million and the annuity earns a guaranteed
annual return of 10 percent. The payments are to begin at the end
of...
Calculate the following: (LG 15-2) a. Suppose a 60-year-old person wants to purchase an annuity from...
Calculate the following: (LG 15-2)
a. Suppose a 60-year-old person wants to purchase an annuity from
an insurance company that would pay $15,000 per year until the end
of that person’s life. The insurance company expects this person to
live for 20 more years and would be willing to pay 5 percent on the
annuity. How much should the insurance company ask this person to
pay for the annuity?
b. A second 60-year-old person wants the same $15,000 annuity,
but...
Problem 15-6 (LG 15-2) a. Suppose a 65-year-old person wants to purchase an annuity from an...
Problem 15-6 (LG 15-2)
a. Suppose a 65-year-old person wants to
purchase an annuity from an insurance company that would pay
$22,000 per year until the end of that person’s life. The insurance
company expects this person to live for 15 more years and would be
willing to pay 7 percent on the annuity. How much should the
insurance company ask this person to pay for the annuity?
b. A second 65-year-old person wants the same
$22,000 annuity, but this...
a. What is the amount of the annuity purchase required if you wish to receive a...
a. What is the amount of the annuity purchase
required if you wish to receive a fixed payment of $250,000 for 15
years? Assume that the annuity will earn 10 percent per year.
b. Calculate the annual cash flows (annuity
payments) from a fixed-payment annuity if the present value of the
15-year annuity is $1.6 million and the annuity earns a guaranteed
annual return of 10 percent. The payments are to begin at the end
of the current year.
c....
a. What is the amount of the annuity purchase required if you wish to receive a...
a. What is the amount of the annuity purchase
required if you wish to receive a fixed payment of $220,000 for 25
years? Assume that the annuity will earn 11 percent per year.
b. Calculate the annual cash flows (annuity
payments) from a fixed-payment annuity if the present value of the
25-year annuity is $1.1 million and the annuity earns a guaranteed
annual return of 11 percent. The payments are to begin at the end
of the current year.
c....
a. What is the amount of the annuity purchase required if you wish to receive a...
a. What is the amount of the annuity purchase required if you
wish to receive a fixed payment of $200,000 for 20 years? Assume
that the annuity will earn 12 percent per year.
b. Calculate the annual cash flows (annuity payments) from a
fixed-payment annuity if the present value of the 20-year annuity
is $1.1 million and the annuity earns a guaranteed annual return of
12 percent. The payments are to begin at the end of the current
year.
c....
Calculate the future value of the following annuity streams: (LG 2-9) a. $5,000 received each year...
Calculate the future value of the
following annuity streams: (LG 2-9) a. $5,000 received each year
for five years on the last day of each year if your investments pay
6 percent compounded annually. b. $5,000 received each quarter for
five years on the last day of each quarter if your investments pay
6 percent compounded quarterly. c. $5,000 received each year for
five years on the first day of each year if your investments pay 6
percent compounded annually....
Calculate the present value of the annuity assuming that it is (1) an ordinary annuity (2)...
Calculate the present value of the annuity assuming that it is
(1) an ordinary annuity (2) an annuity due. Comparing the two types
of annuities, all else equal, which type is more preferable? Why?
Amount of annuity=$12,000 Interest rate=7% Deposit period
(years)=3
Ordinary annuity = 33696, annuity due = 31492, ordinary annuity
is better because it discounts for one less year.
Ordinary annuity = 31492, annuity due = 33696, annuity due is
better because it discounts for one less year....
Calculate the amount of energy required to escape from the surface of the following bodies, relative...
Calculate the amount of energy required to escape from the
surface of the following bodies, relative to that required to
escape from the surface of Earth.
(a) Uranus
energy to escape Earth
(b) Mars
energy to escape Earth
Calculate the amount of reagent and water required to make the following solutions. Do not assume...
Calculate the amount of reagent and water required to
make the following solutions. Do not assume you have a stock
solution unless instructed to do so.
a) 1.00 L of 20.00mM Tris-HCl, 50.0mM NaCl, 20.00mM
MgSO4 x 7H2O, 5.00mM CaCl2
b) 275 mL of 25% Na2HCO3, 18.0% EtOH
c) 750.0mL of 0.2M sodium citrate, 10.00mM SDS (from 0.50M
stock), 2.5% glycerol
d) Calculate molarity of 15% NaCl and 27% hydrochloric acid
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Why would UnderArmour want to be sure that consumers can clearly see different models ( about...
- Five years ago, Miguel invested a stock with price $35 per share. The stock price at...
- You are touring a distant planet on which the magnitude of the gravitational acceleration is 65%...
- GDP increased from $16.55 trillion to $17.28 trillion. What was the growth rate of GDP? The...
- Forming an Accountable Care Organization in a hospital setting What is an ACO and its reimbursement?...
- Implement a method that meets the following requirements: (a) Has the same requirements as the above...
- The Good’n’Fresh Grocery Store has two checkout lanes and four employees. Employees are equally skilled, and...
ADVERTISEMENT