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questions are attached and needed help, Please let me know if you can help me? PLEASE SHOW YOUR WORK. 1) A SIX YEAR ANNUITY OF
questions are attached and needed help, Please let me know if you can help me?
PLEASE SHOW YOUR WORK. 1) A SIX YEAR ANNUITY OF $8500 QUARTERLY PAYMENTS WILL BEGIN 9 YEARS FROM NOW. THE DISCOUNT RATE IS 9% COMPOUNDED QUARTERLY. a. how much is the annuity worth 5 years from now? b. how much is this annuity worth 2 years from now? c. how much is this annuity worth today? 2) You are currently comparing two investments, both of which have up-front costs of $45,000. Investment 1 returns $75,000 in 7 years. Investment 2 returns $105,000 in 9 years. Which of these investments has a higher return? 3) You are planning for your retirement and have decided the following: You will retire in 35 years and will make monthly deposits into your retirement account of $400 for the next 15 years and then monthly deposits of $800 for the remaining 20 years until retirement. You have access to an account that earns a 7% rate of return. a. how much will you have when you retire? b. once you retire, you plan to live off of the interest. If you make annual withdrawals, what will be your retirement income. c. If your goal is to be able to live off of 80,000 per year during retirement ( instead of your answer to b), how much more would you have to have at retirement to reach this goal? 3) You have 20,000 in student loans with an interest rate of 5%, compounded annually. You plan to pay the loan off with equal annual payments over the next ten years. a. What will your annual payments have to be? b. Prepare the first three rows of the amortization schedule for paying off this loanStep by Step Solution
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