A perpetuity pays $100 each and every year forever. The duration of this perpetuity will be _______ if its yield is 10.0%. Need typed answer only .Please give answer within 45 minutes
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A perpetuity pays $100 each and every year forever. The duration of this perpetuity will be _______ if its yield is 10.0%.
Need typed answer only .Please give answer within 45 minutes
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- You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.Jami Minard wants to receive an annuity of $8,000 at the beginning of each year for the next 10 years. How much (in $) should be deposited now at 7% compounded annually to accomplish this goal?Computing the Future Value of an Annuity Stone will deposit $8,250 at the beginning of each year for 10 years in a fund that earns 5%, compounded annually. What is the total amount of the fund at the end of 10 years? Round your answer to the nearest whole number. Do not use a negative sign with your answer. $ Answer
- Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the next 25 years if the balance earns 8% annually, and the first payment occurs one year from now? Round to the nearest dollar and show your work.Find the future value of an annuity of $1200 paid at the end of each year for 10 years, if interest is earned at a rate of 4%, compounded annually. (Round your answer to the nearest cent.) $____________________________A perpetuity pays $ 100 each year , with the first payment scheduled two years from now . Assume that the effective annual interest rate for the next five years is 8 % , and thereafter it is 5 % . Find the present value of the perpetuity .
- Today is your birthday and you decide to start saving for your retirement. You will retire on your 60th birthday and need $40,000 per year at the end of each of the following 15 years. You will make the first deposit one year from today in an account paying 9% interest annually and continue to make an equal amount of deposit each year up to the year before you plan to retire. If an annual deposit of $967.28 will allow you to reach your goal, what birthday are you celebrating today'!You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period. Use this information for the questions below. Use the Saving for Retirement information above to answer this question. If your monthly payments are $147, how much will you have in your retirement fund after 40 years? $_________. Round to the nearest dollar.An insurance settlement of $1.5 million must replace Trixie Eden's income for the next 35 years. What income will this settlement provide at the end of each month if it is invested in an annuity that earns 7.5%, compounded monthly? (b) Solve the problem. (Round your answer to the nearest cent.)$ _____
- A friend who owns a perpetuity that promises to pay $1,000 at the end of each year, forever, comes to you and offers to sell you all of the payments to be received after the 25th year for a price of $1,001. At an interest rate of 10%, should you pay the $1,000 today to receive payment numbers 26 and onwards? What does this suggest to you about the value of perpetual payments?The Eternal Gift Insurance Company is offering you a policy that will pay you and your heirs $10,000 a year forever. The cost of the policy is $285,000. What is the rate of return on this policy if the payment starts today? answer is 3.64%You wish to retire after 22 years; at which time you want to have accumulated enough money to receive an annuity of $68,000 a year for 25 years of retirement. During the period before retirement, you can earn 6 percent annually, while after retirement you can earn 4 percent on your money. What annual contribution to the retirement fund will allow you to receive the $68,000 annually?