On January 1, 1988, Felix inherited a perpetuity with annual payments beginning in six months. The first payment was $5,000, and after that the payments increased by 4% each year. Find the value of this perpetuity on January 1, 1995 if the annual effective interest rate was 7% from January 1, 1988 through January 1, 1996 and 6% thereafter. (Round your answer to the nearest cent. ) answer is $389486.63. please show work
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- June Stickney purchased an annuity on January 1, 2019, which, at a 12% annual rate, would yield $6,000 each June 30 and December 31 for the next 6 years. What was the cost of the annuity to Stickney? Round your answer to two decimal places. $ fill in the blank 4 Five equal annual contributions are to be made to a fund, with the first deposit on December 31, 2019. Determine the equal contributions that, if invested at 10% compounded annually, will produce a fund of $30,000 on December 31, 2024. Round your answer to two decimal places. $ fill in the blank 5 Beginning on December 31, 2020, 6 equal annual withdrawals are to be made. Determine the equal annual withdrawals if $11,000 is invested at 10% interest compounded annually on December 31, 2019. Round your answer to two decimal places. $ fill in the blank 6At the beginning of each period for 11 years, Merl Agnes invests $410 semiannually at 4%. What is the cash value of this annuity due at the end of year 11? (Do not round intermediate calculations. Round your answer to the nearest cent.ack inherited a perpetuity-due, with annual payments of 10,000. He immediately exchanged the first 10 payments of the perpetuity for a perpetuity-immediate having the same present value. The perpetuity-immediate has annual payments of X starting at the end of the 11th year. All the present values are based on an annual effective interest rate of 5.5%. Calculate X
- Fifteen years ago, Mr. Fairhold paid $40,000 for a single-premium annuity contract. This year, he began receiving a $1,100 monthly payment that will continue for his life. On the basis of his age, he can expect to receive $249,600. Assume that on January 1, 2026, Mr. Fairhold's unrecovered investment in the annuity is $1,650. Required: a. How much of his total 2026 annuity payments ($13,200) are taxable? b. Assume that he dies in February after receiving only one $1,100 payment. What are the tax consequences on his final Form 1040?Joel makes regular (end of term) deposits into his RRSP (Registered Retirement Savings Plan) that will be converted into an RRIF (Registered Retirement Income Fund) 20 years from now. During retirement Joel would like to receive $5,400 at the end of every six months for 22 years. If interest is 3.28% compounded semi-annually (for both the RRSP and RRIF). Answer the following questions, and round all answers to two decimal places where necessary. 1) How much money should Joel have in his RRIF to receive payments of $5,400 at the end of every six months? P/Y= PV = $ esc P/Y = PV = $ Submit Question 1 2) What payment will Joel have to make at the end of every six months into his RRSP so that there is enough money in his RRIF at the start of his retirement? Q A N C/Y= FI PMT= $ C/Y= PMT= $ 2 W S * X #3 80 F3 E N= D N= FV = $ FV = $ $ 4 Q F4 R LL I/Y = F I/Y = do 5 % T G 6 % % F6 Y & 7 H F7 U 00 * 8 DII FB ( 09 OMr. Said purchases an ordinary annuity paying 6 % quarterly for 8 years. Find the future value of the annuity if the payment is OMR 2928. 359641.97 119135.31 220203.26 28979.79 59019.35
- Hector will receive 1,500 at the end of each year for 5 years. Jill will receive 1,000 at the end of each year for 10 years. At an annual effective interest rate of i, the present values of the two annuities are equal. Calculate i. a. 2754 O b. .1487 O c. .0718 O d. .9603 O e. 1.1487At the beginning of each period for 11 years, Bobby Nelson invests $470 semiannually at 4%, compounded semiannually. What is the cash value of this annuity due at the end of year 11?A perpetuity makes its first annual payment of $110 exactly 17 years from today. The discount rate is 6.1% per annum compounded annually. 1) What is the present value of this perpetuity valued at exactly Year 13? (Round your answer to the nearest cent) 2) What is the present value of this perpetuity valued at exactly Year 0? (Round your answer to the nearest cent)
- Susan won the lottery today which will pay an annual perpetuity of X, with the first payment occurring five years from today. The perpetuity has a present value of 100,000 based on an annual effective interest rate of 1% for the first ten years and 5% for all years thereafter. Calculate X. A. 4,100 B. 4,224 C. 4,357 D. 4,401 E. 5,696(1)Strahd bought a 20-year annuity-immediate with payment size 350 at an annual effective rate of 4%. Just after receiving the eighth payment, Strahd’s life forever changed and he sold the remainder of the annuity, reinvesting the proceeds in a level-payment perpetuityimmediate. What is the payment size K of this perpetuity?On January 1, Alex received an inheritance of a thirty-year annuity. Starting on the day of the inheritance, the annuity pays $1,000 each January 1, $2,000 each April 1, $1,500 each July 1, and $5000 each October 1. (a) Using i = 5%, calculate the value of this inheritance on the day Alex inherits it. (Round your answer to the nearest cent.) $ (b) If the value on the day she inherits it is $140,000, find the annual effective rate i used to calculate this value to the nearest hundredth of a percent. %