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This is all one question. Solve for a thumbs up. Thank you! (Future value of an ordinary annuity) What is the future value of $480
This is all one question. Solve for a thumbs up. Thank you!
(Future value of an ordinary annuity) What is the future value of $480 per year for 9 years compounded annually at 11 percent? The future value of $480 per year for 9 years compounded annually at 11 percent is $ (Round to the nearest cent.) (Related to Checkpoint 6.2) (Present value of an ordinary annuity) What is the present value of $3,500 per year for 10 years discounted back to the present at 9 percent? The present value of $3,500 per year for 10 years discounted back to the present at 9 percent is $ {Round to the nearest cent.) (Related to The Business of Life: Saving for Retirement) (Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Life box in this chapter, you have decided to invest $4,200 at the end of each year into a Roth IRA for the next 42 years. If you earn 7 percent compounded annually on your investment, how much will you have when you retire in 42 years? How much will you have if you wait 10 years before beginning to save and only make 32 payments into your retirement account? How much will you have when you retire in 42 years? (Round to the nearest cont.) Related to Checkpoint 6.2) (Present value of an ordinary annulty) Nick Johnson, a sophomore mechanical engineering student, receives a call from an insurance agent who believes that Nick is an older woman who is ready to retire from teaching He talks to her about several annuities that she could buy that would guarantee her a fixed annual income The annuities are as follows. Purchase Price of the Amount of Money Duration of the Annuity Annuity (Att=0) Received Per Year Annuity (Years) A $60,000 $7,500 22 B $40,000 $8.500 10 $60 000 $7.000 16 (Click on the icon in order to copy content into a spreadsheet) Nick could eam 9 percent on her money by placing it in a savings account Alternatively, she could place it in any of the above annuities which annuities in the table above, if any, will eam Nicki a higher return than investing in the savings account earning 9 percent? a. Ir Nich could eam percent on her money, what is the present value of annuity A with $7,500 payments per year and 22 years duration? $ Round to the nearest cent) Step by Step Solution
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