Question
3a. An insurance company is offering quarterly payments of $580 for the next 20 years in exchange for a one-time payment of $16,000 today. What
3a. An insurance company is offering quarterly payments of $580 for the next 20 years in exchange for a one-time payment of $16,000 today. What is the per annum rate of return on this offer? (Round to nearest 100th of a percent and enter your answer as a percentage, for example, as 12.34)
Answer:
3b. What is the future value (at the end of 10 years) of an annuity that pays $3200 a quarter over 10 years with the payments invested at 8.3% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78)
Answer:
3c. Jack and Jill need to save $6100 toward a new car. How long will it take them if they save $200 a month earning interest at 4.7% per year? (Treat as an ordinary annuity.) (State your answer in years rounded to the second decimal place, e.g., 12.34)
Answer:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started