Diane wants to receive annuity payments of $2500 at the beginning of each quarter for eight years. The annuity term is to start four years from now and interest is 6% compounded quarterly. a) How much will Diane need to invest today? b) How much will Diane receive in total from the annuity? c) How much of what Diane receives will be interest?
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- Amy purchases an annuity that will give her payments of R at the end of each quarter for seven years. She will receive the first of these payments in 1.5 years. If Amy paid $50,000 for this annuity and will earn a nominal rate of interest of 6% compounded quarterly,(a) write the equation of value (using the appropriate actuarial notation) for this annuity at the time of purchase. Be sure to indicate the effective rate per payment period being used.(b) find the value of R.Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per month for 20 years. A. How much will she have to deposit if she earns 8% interest compounde monthly? B. What's the total she will receive from her payout annuity?Michelle purchases a retirement annuity that will pay her $3,000 at the end of every six months for the first eleven years and $600 at the end of every month for the next five years. The annuity earns interest at a rate of 2.3% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Michelle receive from the annuity? Round to the nearest cent
- Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next year. Assuming a rate of 6%, what is the value of the annuity. Choose the closest. a) $106,000 b) $131,808 c) $159,374 d) $171,5694. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?Anna purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first nine years and $200 at the end of every month for the next four years. The annuity earns interest at a rate of 3.6% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Anna receive from the annuity? Round to the nearest cent
- Siri plans to retire when her simple annuity savings account has enough money to receive 10000.00 per month for 20 years starting at the end of her first month after her retirement. she starts saving 4420.00 per month. Calculate when should Siri retire from today if her savings account pays 4.9% compounded monthly. Round to the nearest year.Connie wants to have an annuity payment of $2000 at the end of every three months. How much should she deposit now at 6% interest, compounded quarterly, to yield this payment for 3 years?Jennifer opted for the plan that will pay her $ 52,000 annually for 15 years. The cash will be paid at the end of each year Required A. Assuming that the interest will remain at 6.8 % constant over the whole period , how much will the insurance company disburse at the end of the 15 years of annuity payment to Jennifer? [ordinary annuity] B. If the payment of the cash flow is done in the beginning of the period , what will be the sum for the insurance company will disburse? [interest rate changes to 7.5%] C. If Jennifer is supposed to invest a sum at the beginning of the retirement in the annuity fund of the insurance , calculate the sum she has to give to the company if Payment is received at the end of each period and the interest rate is 4.8% Payment is done at the beginning of each period and the interest rate is 5.8% [ Annual payment = $52,000 and period is 15 years]
- Mr. Lucy can invest $150 per month in an annuity for 2 years. What interest rate must she invest at if the annuity is to be worth $5 000 at the end of the 2 years. Assume the interest is compounded monthly.Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity? (Show solution)Sarah purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first nine years and $700 at the end of every month for the next five years. The annuity earns interest at a rate of 4.1% compounded quarterly. 4 a. What was the purchase price of the annuity? $0.00 Round to the nearest cent b. How much interest did Sarah receive from the annuity? Round to the nearest cent