QUESTION $17$"A perpetuity has a PV of $$1000.$ If the interest rate is $6\%,$ how much will the perpetuity pay every year? Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."$10$ pointsSave Answer

QUESTION $17$

"A perpetuity has a $PV$ of $$1000.$ If the interest rate is $6\%,$ how much will the perpetuity pay every year? Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."

QUESTION $18$

"Ally wishes to leave a provision in her will that $$1500$ will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is $10\%?$ Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $$ sc $$n sncinior"

QUESTION $19$

$"$If the current rate of interest is $4\mathrm{.}5\%,$ then the present value $($PV$)$ of an investment that pays $$1000$ per year and lasts $5$ years is closest to $.$ Note: Express your answers in strictly numerical terms. For examble, if the answer is $5\%,$ enter $0\mathrm{.}05$ as an answer."

QUESTION $20$

"A rich donor gives a hospital $$15000$ one year from today. Each year after that, the hospital will receive a payment $2\%$ larger than the previous payment, with the last payment occurring in $4$ years' time. What is the present value $($PV$)$ of this donation, given that the interest rate is $4\%?$ Note: Express your answers in strictly numerical terms. For example, if the answer is $5\%,$ enter $0\mathrm{.}05$ as an answer."

QUESTION $21$

"Assume that you are $35$ years old today, and that you are planning on retirement at age $65.$ Your current salary is $$80000$ and you expect your salary to increase at a rate of $1\mathrm{.}5\%$ per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your $36$st birthday and will be $5\%$ of this year's salary. You expect to deposit $5\%$ of your salary each year until you reach age $65.$ Assume that the rate of interest is $4\%.$The present value $($PV$)($at age $35)$ of your retirement savings is $.$Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."QUESTION $18$"Ally wishes to leave a provision in her will that $$1500$ will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is $10\%?$Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter$10$ pointsSave Answer $500$ as an answer $"$

QUESTION $19"$If the current rate of interest is $4\mathrm{.}5\%,$ then the present value $($PV$)$ of an investment that pays $$1000$ per year and lasts $5$ years is closest to $\_\_\_\_\_\_\_\_.$Note: Express your answers in strictly numerical terms. For example, if the answer is $5\%,$ enter $0\mathrm{.}05$ as an answer."$10$ pointsSave Answer

QUESTION $20$"A rich donor gives a hospital $$15000$ one year from today. Each year after that, the hospital will receive a payment $2\%$ larger than the previous payment, with the last payment occurring in $4$ years' time. What is the present value $($PV$)$ of this donation, given that the interest rate is $4\%?$ Note: Express your answers in strictly numerical terms. For example, if the answer is $5\%,$ enter $0\mathrm{.}05$ as an answer."$10$ pointsSave Answer

QUESTION $21$"Assume that you are $35$ years old today, and that you are planning on retirement at age $65.$ Your current salary is $$80000$ and you expect your salary to increase at a rate of $1\mathrm{.}5\%$ per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your rst contribution will be made on your $36$st birthday and will be $5\%$ of this year's salary. You expect to deposit $5\%$ of your salary each year until you reach age $65.$ Assume that the rate of interest is $4\%.$The present value $($PV$)($at age $35)$ of your retirement savings is $\_\_\_\_\_\_\_\_.$Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter