Consider the case of the following annuities and the need to compute either their expected rate of return or duration Jacob inherited an annuity worth $5,660.74 from his uncle. The annuity will pay him eight equal payments of $1,100 at the end of each year. The annuity fund is offering a return of 14.85% 9.57% 11.00% Jacob's friend, Wilson, has hired a financial planner for advice or Considering Wilson's current expenses 12.98% and expected future lifestyle changes, the financial planner has stated that once Wilson crosses a threshold of $43,672,383 in savings, he will have enough money for retirement. Wilson has nothing saved for his retirement yet, so he plans to start depositing $100,000 in a retirement fund at a fixed rate of 11.00% at the end of each year. It will years for Wilson to reach his retirement goal. take Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, complete the following exercises. Which of the following are characteristics of a perpetuity? Check all that apply. The value of a perpetuity cannot be determined. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less on the discounted value of its more distant (in the future) cash flows. A local bank's advertising reads: "Give us $35,000 today, and we'll pay you $400 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit? 0 1.60% 1.82% 01.03% 01.14% Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $52,500. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to increase reduce OCT