ordinary annuity that earns 7.3% compounded monthly has a current balance of $600,000. The owner of the account is about to retire and has to decide how much to withdraw from the account each month. Find the number of withdrawals under each of the following options. (A) $5000 monthly (B) $4000 monthly (C) $3000 monthly B (A) Select the correct choice below, and, if necessary, fill in the answer box to complete your choice. OA. The total number of withdrawals of $5000 will be OB. The withdrawals of $5000 continue forever.
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- > An ordinary annuity that earns 7.3% compounded monthly has a current balance of $600,000. The owner of the account is about to retire and has to decide how much to withdraw from the account each month. Find the number of withdrawals under each of the following options. (A) $5000 monthly (B) $4000 monthly (C) $3000 monthly (A) Select the correct choice below, and, if necessary, fill in the answer box t OA. The total number of withdrawals of $5000 will be OB. The withdrawals of $5000 continue forever. Help me solve this View an example complete your choice. Get more help. Clear all Check answer rect: 0A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used to establish an annuity that earns 4%, compounded quarterly, and pays $6500 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.)At the age of 24, to save for retirement, you decide to deposit $80 at the end of each month in an IRA that pays 5% compounded monthly. a. You will have approximately S in the IRA when you retire. (Do not round until the final answer. Then round to the nearest dollar as needed.) Use the following formula to determine how much you will have in the IRA when you retire at age 65. a. P[(1 + n* - 1] A= or nt - 1 A = b. Find the interest.
- Which table would you use to determine how much must be deposited now in order to provide for 5 annual withdrawals at the beginning of each year, starting one year hence? a. Future value of an ordinary annuity of 1 b. Future value of an annuity due of 1 c. Present value of an annuity due of 1 d. None of these answer choices are correct.A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used to establish an annuity that earns 6%, compounded quarterly, and pays $5500 at the end of each quarter. How long will it be until the account balance is $0?An insurer needs to make the following annuity payments to an individual: £445 paid at the end of each month during the first 15 years and then £448 paid at the end of each 4 months for the following 8 years. Assuming an effective monthly interest rate of 1.3% throughout the entire period, how much total fund the insurer needs to hold today in order to meet these payments? ( correct answer =31470.44, using formulas no tables)
- Choose the appropriate formula type for answering the following question: Suppose you want to have $410,500 for retirement in 15 years. Your account earns 6.5% interest. How much would you need to deposit in the account each month? Annuity Compound Interest Loan/Payout AnnuitySuppose a friend tells you about an annuity that pays 6% annual interest, compounded semi-annually. You invest in the annuity contributing $10,000 semiannually for 6 years. What is the value of the annuity after your last investment? Enter your answer rounded to the nearest hundred dollars and omit the dollar sign and comma (For example, $42,570.21should be entered as 42600.)As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year into an account paying 5% interest compounded annually. (Round your answers to the nearest cent.) Use the future value of an annuity due formula to calculate how much (in $) you would have in the account after 30 years if the bank in part (d) switched from annual compounding to monthly compounding and you deposited $500 at the beginning of each month instead of $6,000 at the beginning of each year.
- Suppose that for retirement purposes, over the course of 27 years, you make monthly deposits of $480.00 into an ordinary annuity that pays an annual interest rate of 4.954% compounded monthly. After those 27 years, you then want to make monthly withdrawals for 28 years, reducing the balance in the account to zero dollars. a) Find the amount of money you have accumulated in the annuity over the first 27 years: b) How much should you withdrawing monthly from your account so that the balance reaches zero dollars after the final 28 years? (Note: Your answers should have a dollar sign and be accurate to two decimal places)An investor wants to save money to purchase real estate. He deposits $550 at the end of each year in an ordinary annuity that pays 4% interest, compounded annually. Answer each part. Do not round any intermediate computations nor answers. If necessary, refer to the list of financial formulas. (a) Find the total value of the annuity at the end of the 1 year. st 24 (b) Find the total value of the annuity at the end of the 2 nd year. (c) Find the total value of the annuity at the end of the 3 rd year.If 5 deposits of $600 each are made into an account at the end of years 9, 10, 11, 12, and 13, what will be the balance in the account at the end of year 25, if the account offers a stated annual rate of interest r = 12 percent compounded annually? [Optional: Try using each of the four annuity formulas to solve this problem and then verify the result using repeated lump sum calculations.]