We Pay Insurance Co. will pay you $1,125 each quarter for 25
years. You want to...
We Pay Insurance Co. will pay you $1,125 each quarter for 25
years. You want to earn a minimum interest rate of .86 percent per
quarter. What is the most you are willing to pay today for these
payments?
We Pay Insurance Co. will pay you $1,025 each quarter for 21
years. You want to earn a minimum interest rate of .82 percent per
quarter. What is the most you are willing to pay today for these
payments?
We Pay Insurance Co. will pay you $1,425 each quarter for 26
years. You want to earn a minimum interest rate of .98 percent per
quarter. What is the most you are willing to pay today for these
payments?
We Pay Insurance Co. will pay you $1,350 each quarter for 23
years. You want to earn a minimum interest rate of .95 percent per
quarter. What is the most you are willing to pay today for these
payments?
We Pay Insurance Co. will pay you $1,100 each quarter for 24
years. You want to earn a minimum interest rate of .85 percent per
quarter. What is the most you are willing to pay today for these
payments?
You want to be able to withdraw $30,000 from your
account each year for 25 years after you retire. If you expect to
retire in 20 years and your account earns 6.1% interest while
saving for retirement and 5% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you
retire? $ b) How much will you need to deposit each month until
retirement to achieve your retirement goals?$ c) How much did you...
You want to get a mortgage, but can only afford to pay $1200 per quarter. How much can you borrow, if the interest rate is 5% annually for a 30 year mortgage?
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.
Larry’s Life Insurance Co. is trying to sell you an investment
policy that will pay you and your heirs $25,000 per year forever.
If the required return on this investment is 4percent, how much will you pay for the policy?
Curly’s Life Insurance Co. is trying to sell you an investment
policy that will pay you and your heirs $42,000 per year forever.
Assume the required return on this investment is 6.7 percent. How
much will you pay for the policy?
Policy value today =
Curly’s Life Insurance Co. is trying to sell you an investment
policy that will pay you and your heirs $40,000 per year forever. A
representative for Curly’s tells you the policy costs $650,000. At
what interest rate would this be a fair deal? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)