An insurance company client deposits $1,000,000 for an annuity payment of $6000 per month
An insurance company client deposits $1,000,000 for an annuity payment of $6000 per month. The annual contracted discount rate of 4% is compounded monthly. The insurance company fee is 2% of the deposit.
How many months does the annuity last?
What is the formula for n?
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An insurance company client deposits $1,000,000 for an annuity payment of $6000 per month
You are an insurance company and have sold an annuity to a customer. The annuity pays...
You are an insurance company and have sold an annuity to a customer. The annuity pays 240 monthly payments (the same each month) starting 12 months from today. The monthly paymenst are $500 per month. If your firm earns 5.00% APR (compounded monthly), on its investments, how much does it have to invest today to just cover the cost of the annuity? O $75,763 $77,278 O$72,375 $72,075 O$73,517
Problem Set 1. A man is paying off a debt of $15,000 with regular payments of...
Problem Set 1. A man is paying off a debt of $15,000 with regular payments of $300 at the end of each month. Annual interest is 18% compounded monthly. (a) Find the exact amount of time to at least five decimal places that it will take to pay off this loan. (b) Determine the size of the balloon payment to be made to pay off the loan at the time of the last regular payment. (c) Determine the size of...
Jean receives annuity payments at the end of every six months. If she deposits these payments...
Jean receives annuity payments at the end of every six months. If she deposits these payments in an account earning interest at 9% compounded monthly, what is the equivalent semi-annually compounded rate of interest? What sum of money must be deposited at the end of every 3 months into an account paying 6% compounded monthly to accumulate to $25,000 in 10 years? Irina deposited $150 in a savings account at the end of each month for 60 months. If the...
5. We wish to accumulate a fund of $60,000 by making regular deposits of $1,525 at...
5. We wish to accumulate a fund of $60,000 by making regular deposits of $1,525 at the end of each month for as long as is necessary. If the annual rate of interest is 6% compounded monthly, how many regular deposits will be necessary and find the final deposit to be made one month after the last regular deposit.
1. In order to accumulate enough money for a down payment on a house, a couple deposits $507 per month into an account...
1. In order to accumulate enough money for a down payment on a house, a couple deposits $507 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 5 years? 2. A company estimates that it will need $125,000 in 16 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 3.3%...
Problem 4 and 5-4 Future Value and Number of Annuity Payments Your client has been given...
Problem 4 and 5-4 Future Value and Number of Annuity Payments Your client has been given a trust fund valued at $1.52 million. She cannot access the money until she turns 65 years old, which is in 15 years. At that time, she can withdraw $21,000 per month. If the trust fund is invested at a 5 percent rate, compounded monthly, how many months will it last your client once she starts to withdraw the money? (Do not round...
A student takes out a college loan of $6000 at an annual percentage rate of 5%,...
A student takes out a college loan of $6000 at an annual percentage rate of 5%, compounded monthly. a. If the student makes payments of $800 per month, how much, to the nearest dollar, does the student owe after 4 months? Don't round until the end. Enter an integer or decimal number [more.. b. After how many months will the loan be paid off?
Taylor has a retirement account that pays 4% per year compounded monthly. Every month for 20...
Taylor has a retirement account that pays 4% per year compounded monthly. Every month for 20 years, Taylor deposits $444, with the first deposit at the end of month 1 The day the last deposit is made, the interest rate increases to 6% per year compounded monthly. During retirement, Taylor plans to make equal monthly withdrawals for 15 years, thus depleting the account. The first withdrawal occurs one month after the last deposit. How much can be withdrawn each month?
find the present value of the given annuity. $ 533 per month for 36 months at...
find the present value of the given annuity. $ 533 per month for 36 months at the rate of 3.9 % compounded monthly
1. Compute the Future Value of a 20-year annuity that pays $15,000 per year. Assume an...
1. Compute the Future Value of a 20-year annuity that pays $15,000 per year. Assume an interest rate of 10.00 percent. Puck currently has $10,000 in his bank account which pays 4.00 %, compounded monthly. How much must Puck save every month, if he wants to accumulate a total of $15,000 in 5 years? 3. Assume that Schuester Bancorp is paying 3.50 percent, compounded weekly, on new deposits. How many years will it take for an initial deposit to triple...
You are an insurance company and have sold an annuity to a customer. The annuity pays 240 monthly payments (the same each month) starting 12 months from today. The monthly paymenst are $500 per month. If your firm earns 5.00% APR (compounded monthly), on its investments, how much does it have to invest today to just cover the cost of the annuity? O $75,763 $77,278 O$72,375 $72,075 O$73,517
Problem Set 1. A man is paying off a debt of $15,000 with regular payments of $300 at the end of each month. Annual interest is 18% compounded monthly. (a) Find the exact amount of time to at least five decimal places that it will take to pay off this loan. (b) Determine the size of the balloon payment to be made to pay off the loan at the time of the last regular payment. (c) Determine the size of...
Jean receives annuity payments at the end of every six months. If she deposits these payments in an account earning interest at 9% compounded monthly, what is the equivalent semi-annually compounded rate of interest? What sum of money must be deposited at the end of every 3 months into an account paying 6% compounded monthly to accumulate to $25,000 in 10 years? Irina deposited $150 in a savings account at the end of each month for 60 months. If the...
5. We wish to accumulate a fund of $60,000 by making regular deposits of $1,525 at the end of each month for as long as is necessary. If the annual rate of interest is 6% compounded monthly, how many regular deposits will be necessary and find the final deposit to be made one month after the last regular deposit.
A student takes out a college loan of $6000 at an annual percentage rate of 5%, compounded monthly. a. If the student makes payments of $800 per month, how much, to the nearest dollar, does the student owe after 4 months? Don't round until the end. Enter an integer or decimal number [more.. b. After how many months will the loan be paid off?
1. Compute the Future Value of a 20-year annuity that pays $15,000 per year. Assume an interest rate of 10.00 percent. Puck currently has $10,000 in his bank account which pays 4.00 %, compounded monthly. How much must Puck save every month, if he wants to accumulate a total of $15,000 in 5 years? 3. Assume that Schuester Bancorp is paying 3.50 percent, compounded weekly, on new deposits. How many years will it take for an initial deposit to triple...
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