Part A)

Given that the $10,000 payments are equal in amount, will be made at the same time each semi-annual period, and will be discounted at the same interest rate each period, the payments can be described as:

Part b)

Which concept would you rely on to find out what the $10,000 payments are worth in 2040?

Group of answer choices

Present Value of an Annuity (Table E.2)

Future Value of an Annuity (Table E.4)

Future Value of a Single Amount (Table E.3)

Present Value of a Single Amount (Table E.1)

part C)

What interest rate and number of periods would you use to calculate what the $10,000 payments are worth in 2040?

part D1)

Given your answer to #4, you now know what the payments are worth in 2040. However, what you really want to know, is what the amount from #4 will be worth today, in 2020. Which concept would you rely on to find out what the value from #4 above is worth in 2020?

Group of answer choices

Present Value of a Single Amount (Table E.1)

Future Value of a Single Amount (Table E.3)

Present Value of an Annuity (Table E.2)

Future Value of an Annuity (Table E.4)

Part d2)

If youre looking for a factor representing 20 periods (i.e. 20 years), what interest rate would you look up on the table indicated in #5 OR which interest rate would enter into the Excel equation to determine what the amount from #4 will be worth in 2020?

Assume that you've worked for the same company for the past 15 years and this company offers its employees a pension plan. This plan guarantees that, as soon as you retire, you will receive a specific amount of money every six months until you die. Today you find out that the amount you will receive is $10,000. You don't plan on retiring for another 20 years but would like to know what these payments are worth to you now. Having taken ACCT 2101 you know that the value of $10,000 twenty years from now is not the same as if you received $10,000 now. You expect your retirement period to last a good 15 years. If the interest rate (i.e. discount rate) on these payments is 8%, what are they worth to you today? To answer this question it may help to consider the timeline below: 2020 2040 2055 RIP Today Day you Retire $10,000 paid in pension every six months for 15 years To determine today's value of the $10,000 payments that will begin in 2040, rely on the following steps (and answer related questions as you progress along): Assume that you've worked for the same company for the past 15 years and this company offers its employees a pension plan. This plan guarantees that, as soon as you retire, you will receive a specific amount of money every six months until you die. Today you find out that the amount you will receive is $10,000. You don't plan on retiring for another 20 years but would like to know what these payments are worth to you now. Having taken ACCT 2101 you know that the value of $10,000 twenty years from now is not the same as if you received $10,000 now. You expect your retirement period to last a good 15 years. If the interest rate (i.e. discount rate) on these payments is 8%, what are they worth to you today? To answer this question it may help to consider the timeline below: 2020 2040 2055 RIP Today Day you Retire $10,000 paid in pension every six months for 15 years To determine today's value of the $10,000 payments that will begin in 2040, rely on the following steps (and answer related questions as you progress along)