Computation of annuity, A individual has accumulated some

Computation of annuity

Assignment Help Finance Basics

Reference no: EM13827496

Problem:

A individual has accumulated some wealth in a self-administered stock market investment fund and now wants to cash in (or liquidate) a part of this fund and use it to purchase an annuity from an insurance company that will pay her $65,000 annually beginning exactly one year from today for the next 15 years. If the applicable interest rate by the insurance company is 4.5%, how much will she have to pay for this annuity?

Summary of problem:

This question basically belongs to Finance as well as it discusses about computation of annuity to be paid to an insurance company which will pay $65000 annually, for the next 15 years.

Reference no: EM13827496

Questions Cloud

Discusses about a statement by foucault : This problem is from Sociology and the problem discusses about a statement by Foucault that goes, "there is no such things as a neutral subject. We are all inevitably someone's adversary".

Market differentiation based on demographics : Market Differentiation based on Demographics

Please provide asummary of harriet tubman''s role : Please provide asummary of Harriet Tubman's role in American History in 800 words or more.

The rail splitter repairing the union : In one paragraph, explain the bias in the political cartoon of "The Rail Splitter Repairing the Union." What strategies does the media item use to persuade people? (examples are symbolism and emotional appeal).In another paragraph, in your own words,..

Computation of annuity : A individual has accumulated some wealth in a self-administered stock market investment fund and now wants to cash in (or liquidate) a part of this fund and use it to purchase an annuity from an insurance company that will pay her $65,000 annually..

Structure about poultry litter convert to bio fuel : structure about poultry litter convert to bio fuel from one industrial or research person

Explain four primary theoretical perspectives : The problem related to Sociology and it is explain about defining four primary theoretical perspectives and their application in gender stratification and institution of family.

Compare symbolic interaction and rational choice perspective : The problem is belongs to Sociology and the problem is describe the comparing symbolic interaction and rational choice perspectives on religion.

Calculation of yield to maturity of a bond : What is the current yield on a government bond, issued exactly five years ago, that has a current market price of $5866 and pays an annual coupon payment of $350, and matures at the end of 4 years, when the face value of $5000 will be repaid?

User Account

All Pages