Marcus receives an inheritance of $11,000. He decides to invest this money in a 15-year certificate of deposit (CD) that pays 6.0% interest compounded monthly. How much money will Marcus receive when he redeems the CD at the end of the 15 years? Marcus will receive $ (Round to the nearest cent.)
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- Minnie owns a qualified annuity that cost 78,000. The annuity is to pay Minnie 650 per month for life after she reaches age 65. Minnie turns 65 on September 28, 2019, and receives her first payment on November 1, 2019. a. How much gross income does Minnie have from the annuity payments she receives in 2019? b. Shortly after receiving her payment on October 1, 2034, Minnie is killed in an automobile accident. How does the executor of Minnies estate account for the annuity on her return for the year 2034? c. Assume that the accident does not occur until November 1, 2043. How does the executor of Minnies estate account for the annuity on her 2043 return?Manuel wants to invest an inheritance of $21,000 for one year. His credit union offers 4.09% for a one-year term or 4.04% for a six-month term. (a) How much will Manuel have after one year if he invests at the one-year rate? (b) How much will Manuel have after one year if he invested for six months at a time at 4.04% each time? (c) What would the one-year rate have to be to yield the same amount of interest as the investment described in part (b)? (a) After one year, Manuel will have $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) One year after the initial investment, Manuel will have $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The one-year rate to yield the same amount of interest as the investment described in part (b) is %. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal…Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded semiannually. How much money will she have in that account if she leaves it in there for 10 years?
- Jim deposits $12.4,000 annually into a life insurance fund for the next 5 years, at which time he plans to retire. Instead of a lump sum, Jim wishes to receive annuities for the next 20 years. What is the annual payment he expects to receive beginning the year he retires if he assumes an interest rate of 8.8 percent for the whole time period? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)Kenneth is expected to receive an inheritance of about $250,000 from his grandmother's estate in a few months' time. He is eyeing to buy a 1-bedder condominium so that he can stay on his own. The price of the property is $1,000,000. He is offered a 30-year mortgage loan of $750,000 at an interest rate of 1.3%. (1) Compute the monthly instalment of the mortgage loan. (ii) Analyse and discuss how the Mortgage Servicing Ratio (MSR) and Total Debt Service Ratio (TDSR) will impact his plan to purchase the $1m condo.On January 1, Alex received an inheritance of a thirty-year annuity. Starting on the day of the inheritance, the annuity pays $1,000 each January 1, $2,000 each April 1, $1,500 each July 1, and $5000 each October 1. (a) Using i = 5%, calculate the value of this inheritance on the day Alex inherits it. (Round your answer to the nearest cent.) $ (b) If the value on the day she inherits it is $140,000, find the annual effective rate i used to calculate this value to the nearest hundredth of a percent. %
- Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tables, Geoff’s life expectancy is 240 months. How much of the first $100 payment will Geoff include in his gross income?Zayden will receive an inheritance of R850 000 four years from now. His discount rate is a 9,2% interest rate, compounded semi-annually. Which of the following values is closest to the amount that he should accept today for the right to his inheritance?Jack is expected to receive an inheritance of about $350,000 from his grandmother’s estate in a few months’ time. He is eyeing to buy a 1-bedder condominium so that he can stay on his own. The price of the property is $1,500,000. He is offered a 30-year mortgage loan of $800,000 at an interest rate of 1.3%. (i) Compute the monthly instalment of the mortgage loan. (ii) Analyse and discuss how the Mortgage Servicing Ratio (MSR) and Total Debt Service Ratio (TDSR) will impact his plan to purchase the $1m condo.
- Joe purchases a£50,30-year annuity. Larry purchases a£50perpetuity. In both cases, payments begin in one year, and the appropriate interest rate is12.5%. What is the present value of Larry's payments that will occur from year 31 onwards?Craig decides to purchase a property that has been valued at $480,000. He has $90,000 available as a deposit and will require a mortgage for the remaining amount. The bank offers him a 25 year mortgage at 2% interest. Calculate the total interest he will pay over the life of the loan, assuming he makes monthly payments.Magnus wishes to have $1,500,00 when he retires in 44 years. What are the monthly payments he must deposit into an account that earns 2.5%?