Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE ANSWER PART C AND LABEL ANSWERS EXACTLY AS THE SCREENSHOT eck my You deposit $11,000 annually into a life insurance fund for the next
PLEASE ANSWER PART C AND LABEL ANSWERS EXACTLY AS THE SCREENSHOT
eck my You deposit $11,000 annually into a life insurance fund for the next 11 years, after which time you plan to retire. a. If the deposits are made at the beginning of the year and earn an interest rate of 6 percent, what will be the amount in the retirement fund at the end of year 11? b. Instead of a lump sum, you wish to receive annuities for the next 22 years (years 12 through 33). What is the constant annual payment you expect to receive at the beginning of each year if you assume an interest rate of 6 percent during the distribution period? c. Repeat parts (a) and (b) above assuming earning rates of 5 percent and 7 percent during the deposit period and earning rates of 5 percent and 7 percent during the distribution period. Complete this question by entering your answers in the tabs below. Req A and B Reg C Repeat parts (a) and (b) above assuming earning rates of 5 percent and 7 percent during the deposit period and earning rates of 5 percent and 7 percent during the distribution period. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Value at 11 Years Distribution Period Annual payment Deposit Period 5 percent $ 164,088.39 5 percent 7 percent 5 percent 7 percent 7 percent $ 185,772.96Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started