Question
In: Finance
An insurance agent is trying to sell you an annuity, that will provide you with $6...
An insurance agent is trying to sell you an annuity, that will provide you with
$6 comma 5006,500
at the end of each year for the next
1515
years. If you don't purchase this annuity, you can invest your money and earn a return of
77%.
What is the most you would pay for this annuity right now?
Ignoring taxes, the most you would pay for this annuity is
$nothing .
Solutions
Expert Solution
PVA = Annuity x [{1 - (1 + r)-n} / r]
= $6,500 x [{1 - (1 + 0.07)-15} / 0.07]
= $6,500 x [{1 - 0.3624} / 0.07]
= $6,500 x [0.6376 / 0.07]
= $6,500 x 9.1079 = $59,201.44
So, the most you would pay for this annuity is $59,201.44
jeff jeffy answered 2 years agoRelated Solutions
An insurance agent is trying to sell you an annuity, that will provide you with $6,500...
An insurance agent is trying to sell you an annuity, that will
provide you with $6,500 at the end of each year for the next 15
years. If you don't purchase this annuity, you can invest your
money and earn a return of 7%. What is the most you would pay for
this annuity right now?
And insurance agent is trying to sell you an immediate retirement annuity, which for a single...
And
insurance agent is trying to sell you an immediate retirement
annuity, which for a single amount paid today will provide you with
$8000 at the end of each year for the next 15 years, you currently
earning 9% on low risk investments comparable to the retirement
annuity ignore taxes what is the most you would pay for this
annuity?
An insurance agent is trying to sell you an annuity, that will provide you with $19,800 at the end of each year for the next 30 years.
Value of a retirement annuity Personal Finance
Problem An insurance agent is trying to sell you an annuity, that will
provide you with $19,800 at the end of each year for the next
30 years. If you don't purchase this annuity, you can invest your
money and earn a return of 7%.What is the most you would pay for this annuity right now?Ignoring taxes, the most you would pay for this annuity is $______. (Round to the nearest cent.)
An insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount...
An insurance agent is trying to sell you an immediate-retirement
annuity, which for a single amount paid today will provide you with
R12 000 at the end of each year for the next 25 years. You
currently earn 9% on low-risk investments comparable to the
retirement annuity. Calculate the most you would pay today.
1. R103 476.97
2. R108 629.85
3. R113 181.83
4. R117 870.96
Your insurance agent is trying to sell you an annuity that costs $45,000 today. By buying...
Your insurance agent is trying to sell you an annuity that costs
$45,000 today. By buying this annuity, your agent promises that you
will receive payments of $380 per month for 15 years. What is the
rate of return expressed as an APR on this investment?
(a) 6.87%
(b) 5.01%
(c) 5.76%
(d) 6.01%
(e) 5.55%
Your insurance agent is trying to sell you an annuity that costs $60,000 today. By buying...
Your insurance agent is trying to sell you an annuity that costs
$60,000 today. By buying this annuity, your agent promises that you
will receive payments of $315 per month for 30 years. What is the
rate of return expressed as an APR on this investment? Multiple
Choice 4.44% 4.81% 4.00% 5.49% 4.72%
Your insurance agent is trying to sell you an annuity that costs $60,000 today. By buying...
Your insurance agent is trying to sell you an annuity that costs
$60,000 today. By buying this annuity, your agent promises that you
will receive payments of $475 per month for 15 years. What is the
rate of return expressed as an APR on this investment?
An insurance company is trying to sell you a retirement annuity. The annuity will give you...
An insurance company is trying to sell you a retirement annuity.
The annuity will give you 20 payments with the first payment in 12
years when you retire. The insurance firm is asking you to pay
$50,000 today. If this is a fair deal, what must the payment amount
be (to the dollar) if the interest rate is 8 percent?
please show in excel
An insurance company is trying to sell you an investment policy that will pay you and...
An insurance company is trying to sell you an investment policy
that will pay you and your heirs $100,000 per year forever. If the
required return on this investment is 6.5 percent, how much will
you pay for the policy? A. $1,538,461.54 B. $925,925.93 C.
$1,265,455.25 D. $2,627,950.42
A life insurance co. is trying to sell you an investment policy that will pay you...
A life insurance co. is trying to sell you an investment policy
that will pay you and your heirs $15367 per year forever. If the
policy costs $546357 today, at what interest rate (in percent) is
it properly priced? Answer to two decimals.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Can you explain to me the differnces in how we paid for the health care (access...
- Discuss proactive and defensive marketing in context to the company position in the hypothetical market structure...
- Write a java code that could be used to show the simulation of a tornado. use...
- A Canadian company issues an 8-year term bond with face value of $1,000 and 6% coupon...
- 1. Consider the following nuclides: &
- In general, teams can be described three ways. Name and define each.
- JAVASCRIPT: Please create an array of student names and another array of student grades. - Create...
ADVERTISEMENT