Answer question 4 and 5.
An INDIVIDUAL is entitled to receive an annual end-of- end of the 20-year period, annual payments will pass to to accumulate funds to provide a retirement annuity for its Vice Preside Upon retirement, she is entiearch, Jil G Sunrise industries wishes year payment of $44,000 for exactly 20 years. If she dies prior to the her heirs Ms. Garza, by contract, will retire at the end of exactly 12 years into an account earning 9% interest. Once the 20-year-disbursement period" begins, Sunrise plans to monies During the 12-year "accumulation period" Sunrise wishes to fund the annuity by making equal, annual, end-of into an into an account earning a guaranteed 8% per year. At the end of te that the first deposit will be made at the end of Year 1 and that the the distribution period, the account balance will be first distribution payment wil be received at the end of Year 13. An for its Vice President of Research, ill Garea. she is entitled to receive an annual end-ot 20-year period, annual payments wih Sunrise industries wishes to accumulate funds to exactly 12 years. Upon retirement, she is pass to MMs. Garea, by contract, will retire at the end of exactly 20 years. If she dies prior to the end of the year payment of $44,000 for Ouring the 12year "accumulation period" Sunrise wishes to fund the into an account earning 9% interest. Once monies inte an account earning a t ero. Note that the first deposit will be made at t her heirs by making equal, annual, end-of ethe accumu us the distribution period, the account balance will be hat the first distribution payment will be received at on period" Sunrise wishes to fund the annuity 'disbursement period" begins, Sunrise the 20 year he end of the distribution period theamo At t guaranteed 8% per year first distributiorn the end of Year 1 and the end of Year 13 Assignment (Possible points in parentheses.) Report inputs: N, ,PVPMT, FV, when used, in order to earn partial credit despite wrong fi a timeline depicting all of the cash flows associated with Sunrise's view of the retirement annuity. Be sure to identify 1. Draw cash flows, annuity cash flows, and timing of each. ion period, disbursement period, interest rates, known (7 points) 2 ldentity the size of the sum Sunrise Industries must accumulate by the end of year 12 to provide the 20-year, $44,000 annuity. (3 points) 3. Assuming your answer to the account over the 1 #2 was S450 000 identify the size of Sunrise industries' equal, annual, end-of-year deposits into 2-year accumulation period. (3 points) 4 Redo "3 assuming that Sunrise Industries could earn 10% rather than 9% during the accumulation period 2 points S becinnin eod ths (ind value) assuming that payments made to Ms. Garza in retirement would be made at the a. Size of the accumulated amount (4 points) b. Size of the "accumulation period" end-of-year annuity (4 points)
