Establish an individual retirement account

Assignment Help Financial Management

Reference no: EM131813753

1. "A judge denied a 94-year-old woman s attempt to force a Lottery Commission to pay her $2.6 million winnings up front on the grounds that she otherwise won't live long enough to collect it all. The woman already received an immediate payment of $215,611, and she will receive 18 annual gross checks of $132,467. If a buyer offers to pay the woman $1.7 million for the 18 annual gross checks of $132,467, what is the buyer's annual interest rate? Enter your answer as a percentage between 0 and 100."

2. "You establish an Individual Retirement Account (IRA) with an interest rate of 4.7%, compounded annually. You plan to deposit $2900 at the end of each year for a total of 26 years. However, you only deposit $967 at the end of year 5. If you deposit $2900 in the other 25 years (i.e., years 1-4 and years 6-26), how much do you have in the IRA at the end of 26 years?"

Reference no: EM131813753

Questions Cloud

Review problem on checking accounts at a certain bank : In the previous year the proportion of deposits in checking accounts at a certain bank that were made electronically was 45%. The bank wishes to determine.

Outline the process of forensic lab accreditation : From the second e-Activity, outline the process of forensic lab accreditation and determine what a laboratory needs to do in order to fulfill the requirements.

Compare the EVA for Briggs and Stratton : Briggs & Stratton Corporation is the world's largest maker of air-cooled gasoline engines for outdoor power equipment. Compare the EVA for Briggs and Stratton

Discuss voluntary and involuntary termination : Discuss voluntary and involuntary termination of an S corporation

Establish an individual retirement account : "You establish an Individual Retirement Account (IRA) with an interest rate of 4.7%, compounded annually.

Should the research center acquire the equipment explain : Annual cash inflows from operations would increase by $140,000, Should the research center acquire the equipment? Explain

Proportion of state population that is impoverished is less : According to the Federal Poverty Measure 12% of the U.S. population lives in poverty. The governor of a certain state believes that the proportion.

Annual interest rate compounded annually : With a 13.9% annual interest rate compounded annually, what is the minimum price that you should sell your two payments for right now? "

Determine the purpose of creating a digital hash : Determine the purpose of creating a digital hash. Explain in detail the need for this procedure and the potential damage if this critical step is not taken.

User Account

All Pages