Determine the present value PV of annuity necessary to fund withdrawal given. (Suppose end-of-period withdrawals and compounding at same intervals as withdrawals.)
$1,200 per month for 15 years, if annuity earns 5% per year
Determine present value PV of annuity necessary to fund withdrawal given. (Suppose end-of-period withdrawals and compounding at same intervals as withdrawals.)
$1,500 per quarter for 20 years, if annuity earns 6% per year
Determine periodic withdrawals PMT for annuity given. (Suppose end-of-period withdrawals and compounding at same intervals as withdrawals.)
$500,000 at 8%, paid out monthly for 16 years
Determine periodic withdrawals PMT for annuity given. (Suppose end-of-period withdrawals and compounding at same intervals as withdrawals.)
$450,000 at 7%, paid out monthly for 10 years
Find periodic payments PMT on loan given.
$400,000 borrowed at 5% for ten years, with quarterly payments
Find selling price PV, per $1,000 maturity value, of bond. (Suppose twice-yearly interest payments.)
3 year, 4.385% bond, with the yield of 4.465%
While shopping for the car loan, you get following offers: Solid Savings & Loan is eager to loan you $10,000 at 5% interest for four years. Fifth Federal Bank & Trust will loan you $10,000 at 6% interest for 3 years. Both need monthly payments. You can afford to pay $250 per month. Which loan, if either, can you take?
a) Solid Savings & Loan
b) Fifth Federal Bank & Trust
c) neither loan
Meg's pension plan is the annuity with the guaranteed return of 6% per year (compounded quarterly). She will like to retire with the pension of $20,000 per quarter for 15 years. If she works 27 years before retiring, how much money should she and employer deposit every quarter?