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In: Math
If $100,000 will purchase a 20-year annuity paying $739 at each month’s end, what monthly compounded...
If $100,000 will purchase a 20-year annuity paying $739 at each month’s end, what monthly compounded nominal rate and effective rate of interest are earned by the funds? (Do not round intermediate calculations and round your final answers to 2 decimal places.)
Solutions
milcah answered 1 year agoRelated Solutions
If $100,000 will purchase a 20-year annuity paying $739 at each month’s end, what monthly compounded...
If $100,000 will purchase a 20-year annuity paying $739 at each
month’s end, what monthly compounded nominal rate and effective
rate of interest are earned by the funds? (Do not round
intermediate calculations and round your final answers to 2 decimal
places.)
j = % compounded monthly
f = % effective rate
What minimum initial amount will sustain a 25-year annuity paying $1000 at the end of each...
What minimum initial amount will sustain a 25-year annuity
paying $1000 at the end of each year if the initial amount can be
invested to earn:
a) 6% compounded annually?
b) 6% compounded semiannually?
c) 6% compounded quarterly?
d) 6% compounded monthly?
You purchase a 10 year annuity with payments at the end of each year for $10,000
You purchase a 10 year annuity with payments at the end of
each year for $10,000 (where for this annuity effective annual
interest is 4%). Immediately after you receive payments, you
deposit the payment into an account earning 5% effective annual
interest. How much is in this account at the end of 10 years? Use
this to find the equivalent effective annual interest rate for this
$10, 000 investment over this 10 year period.
You purchase a 10 year annuity with payments at the end of each year for $10,000...
You
purchase a 10 year annuity with payments at the end of each year
for $10,000 (where for this annuity effective annual interest is
4%). Immediately after you receive payments, you deposit the
payment into an account earning 5% effective annual interest. How
much is in this account at the end of 10 years? Use this to find
the equivalent effective annual interest rate for this $10, 000
investment over this 10 year period. please answer all parts of the...
You purchase a 10 year annuity with payments at the end of each year for $10,...
You purchase a 10 year annuity with payments at the end of each
year for $10, 000 (where for this annuity effective annual interest
is 4%). Immediately after you receive payments, you deposit the
payment into an account earning 5% effective annual interest. How
much is in this account at the end of 10 years? Use this to find
the equivalent effective annual interest rate for this $10, 000
investment over this 10 year period.
A 20-year annuity pays $1,450 per month, and payments are madeat the end of each...
A 20-year annuity pays $1,450 per month, and payments are made
at the end of each month. If the interest rate is 11 percent
compounded monthly for the first ten years, and 7 percent
compounded monthly thereafter, what is the present value of the
annuity? (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
A 20-year annuity pays $2,100 per month, and payments are made at the end of each...
A 20-year annuity pays $2,100 per month, and payments are made
at the end of each month. If the interest rate is 11 percent
compounded monthly for the first ten years, and 7 percent
compounded monthly thereafter, what is the present value of the
annuity? (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Find the amount of each annuity A) after 12 monthly deposits of $200 at 5% compounded...
Find the amount of each annuity A) after 12 monthly deposits of
$200 at 5% compounded monthly B) after 5 annual deposits of $1000
at 3% compounded annually.
A bank offers a retirement annuity that earns 4% APR, compounded monthly. Each person wants to...
A bank offers a retirement annuity that earns 4% APR, compounded
monthly. Each person wants to have at least $200,000 in the account
when they retire. For each retirement plan described, determine:
the monthly deposit, the total length of time they spent investing,
the amount in their account at the end of the investing time, the
total amount of money they invested, and the total amount of
interest they earned. Round monthly deposits up to the cents place
and other...
Find the EAR in each of the following cases: a.20% compounded quarterly b.13% compounded monthly c....
Find the EAR in each of the following cases:
a.20% compounded quarterly
b.13% compounded monthly
c. 18% compounded daily
d. 16%with continuous compounding
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