Question
In: Finance
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.)
Solutions
Expert Solution
The most to be paid is the present value of amount to be received in future
= 19,800*present value annuity factor
= 19,800*PVAF(7%,30 years)
= 19,800*12.409
=$245,698.2
jeff jeffy answered 2 years agoRelated Solutions
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 .
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 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
You plan on saving $10,000 a year (as a regular annuity) for the next 30 years. You...
You plan on saving $10,000 a year (as a regular annuity) for the
next 30 years. You will then make equal withdrawals for
each of the next 25 years (also a regular annuity). If
the interest rate is 10% over the first 30 years but only 8% for
the remaining 25 years, what will be the amount of each
withdrawal?
Place answer in the box below and use 2 decimals.
Suppose you deposit $20,000 at the end of each of the next 30 years into a...
Suppose you deposit $20,000 at the end of each of the next 30
years into a retirement account. Immediately after your last
deposit, you take the entire accumulated value in your account and
purchase a 20-year annuity, which will pay you X at the beginning
of each year for 20 years. The price of this 20-year annuity is
equal to the present value (at the time of purchase) of the 20
annual cash flows. The effective annual interest rate through...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Suppose you are trying to determine the capacity (in gallons) of the gas tank needed on...
- List the arithmetic operators used in BASIC and state their priorities of execution in a statement....
- Describe the espoused values of a company you have worked for (or been exposed to -...
- 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...
ADVERTISEMENT