Determine the amounts of the first and the final payment

Assignment Help Econometrics

Reference no: EM13232716

Lawson just purchased an income annuity for $323,335. The income annuity pays interest at a rate of 3.85 percent compounded monthly. The first income payment will be made today and the final income payment will be made in twenty years. The monthly income payments will grow geometrically and the final payment will be 50 percent larger than the initial payment. Determine the amounts of the first payment and the final payment Lawson will receive.

Reference no: EM13232716

Questions Cloud

At what temperature will air have same density as helium : At what temperature will air (MW=29) have the same density as helium at 300 K, both gases at the same pressure.

Find value today of the maintenance costs for next years : Maintenance occurs every month. The cost of maintenance starts at $2250 and it will grow by $20 each time the facility is maintained. Find the value today of the maintenance costs for the next ten years if Black Cat Blades Ltd.'s

Explain how many molecules of gas could be confined : How many molecules of gas could be confined in 230 mL at a pressure of 740 mmHg and a temperature of 25 degree C?

Did product change jobs and wages domestically : How marketing costs are lower and show new market opportunities were created and how it helped income all year round, benefited the local market, and reduced expenses

Determine the amounts of the first and the final payment : Lawson just purchased an income annuity for $323,335. The income annuity pays interest at a rate of 3.85 percent compounded monthly. The first income payment will be made today and the final income payment will be made in twenty years.

Explain what is the molecular weight of thiopene : What is the molecular weight of thiopene, if 0.74 g of thiopene occupies a volume of 270 mL at 760 mmHg and 100 degrees C?

Calculate the amount of the monthly additional income : if you were to retire today, you would need a monthly income of $1600 in addition to the company pension, Canada Pension Plan, and Old Age Security payments you expect to receive. Today is your 22nd birthday and you plan to retire on your 65th bir..

Describe the evolution of prokaryotes and eukaryotes : Can anyone explain the mechanism of evolution for prokaryotes and eukaryotes, Please use your own words and not copy from internet because I will not be able to understand

Explain a saturated solution of cu : The solubility product constant for Cu(IO3)2 is 1.44 x 10-7. What volume of 0.0520 M S2O32- would be required to titrate a 20.00 mL sample of a saturated solution of Cu(IO3)2?

User Account

All Pages