User Account

All Pages

Immediate retirement annuity

Assignment Help Finance Basics
Reference no: EM132534737

An insurance agent is trying to sell you an immediate retirement annuity, which for a lump-sum fee paid today will provide you with $50,000 every year for the next 20 years. You currently earn 8 percent annual return on investments with comparable risk to the retirement annuity. What is the most you would pay for this annuity?

You need $300,000 to buy a house. You decide to borrow money from the bank to finance your mortgage. Assume that the bank charges a fixed annual interest rate of 4.50 percent and the term of the loan is 30 years. If you are required to make an equal payment every year for 30 years to pay off the loan, what is the annual payment? (Note that banks typically require monthly mortgage payments. For this problem, however, let's assume for simplicity that annual payments can be made.)

Your financial objective is to have $3,000,000 upon your retirement 40 years from now. If you have committed to make an equal annual deposit into an investment account that provides 9 percent annual return, how much will the annual deposit be?

If you invest $30,000 a year, every year in an account that earns 8 percent annual return, how long will it take for the balance in the account to reach $2,000,000?

Reference no: EM132534737

Questions Cloud

Find what is maximum price should be willing to pay : If you require a 5.75% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for this bond?
Define how to construct a strong problem statement : Evidence-based practice is extremely important in nursing. Throughout your master's program, you will complete research on various topics.
Establish target expected return : Suppose that the risk-free rate is 6 percent and the expected return on the market portfolio is 15 percent. An investor with $1.5 million to invest wants
Find what is the portfolio beta : What is the portfolio's beta? Note: Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as 12.35
Immediate retirement annuity : An insurance agent is trying to sell you an immediate retirement annuity, which for a lump-sum fee paid today will provide you with $50,000 every year
When is revenue generally recognized : When is revenue generally recognized?When the company satisfies the performance obligation./When the warranty expires./When cash is received.
Discuss connection between ebp and the quadruple aim : Write a brief analysis (no longer than 2 pages) of the connection between EBP and the Quadruple Aim. Your analysis should address how EBP might (or might not).
What is ritter required rate of return : The risk-free rate is 3.50%, and the required return on the market portfolio is 11.75%. Using CAPM, what is Ritter's required rate of return?
What is meant by comparability : What is meant by comparability when discussing financial accounting information? Information has predictive or confirmatory value.

Reviews

Write a Review

Finance Basics Questions & Answers

  On sept 15th 2013 the dow jones industrial average closed

on sept 15th 2013 the dow jones industrial average closed at 14776.13 which was down from 14946.46 the day before. what

  Accumulate the money necessary for retirement

How much do you need to set aside at the end of each year to accumulate the money necessary for your retirement? (Assume year-end cash flows.)

  Take withdrawals from retirement account

Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 73.00. During these years of part-time work

  Evaluate the firms decision making procedures

Evaluate the firm's decision-making procedures, and explain why the acceptance of project 263 and rejection of project 264 may not be in the owners' best interest.  If the firm maintains a capital structure containing 40% debt and 60% equity, find it..

  Orien inc has the following data rrf 400 rpm 600 and b

obrien inc. has the following data rrf 4.00 rpm 6.00 and b 1.10. what is the firms cost of equity from retained

  Analyze financial performance in a business setting

What types of financial ratios are used to analyze financial performance in a business setting?

  The kaizen strategy can be used for an ongoing improvement

the kaizen strategy can be used for an ongoing improvement process and to evaluate total quality control and make

  Honest and transparent with dealings

I think that if the two firms want to give out some shoes, as long as they are honest and transparent with their dealings, why not?

  Business culture is the context in which the measures exist

business culture is the context in which the measures exist. they are bound to each other in terms of context and

  What is the account effective annual rate of return

If a four-year interest bearing account yields an 8 percent nominal annual rate of return that is compounded quarterly, what is the account's effective annual.

  Pick two pounds of coffee beans

Tom can pick two pounds of coffee beans in an hour or gather four pounds of nuts. Each works six hours a day.

  Business analyst for a well-known design firm

You have been hired as a business analyst for a well-known design firm. Currently, they utilize technology for their day-to-day operations but not to analyze data that could help with making business decisions.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd