I will invest P500 per quarter for my retirement at 7.3% compounding quarterly for 32 years....
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I will invest P500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have a choice of making that payment of P500 at the beginning or the end of the quarter (regular annuity or annuity due). In which account will I have more money and by how much? Which account will earn the most interest and by how much? 2. I am looking ahead to my retirement and want to be able to retire at 70 and hope to live to 95 and make P3200 a month from an account compounding monthly at 4.5%. I am currently 27 and I am going to deposit P1000 at the beginning of each quarter until I am 70 in an account that pays 8.5% and is compounded quarterly. Will I have enough to make it happen and by how much am I above or below? Annuity Due 1. What is the future value (as of 10 years from now) of an annuity that makes 10 annual payments of P 5,000, if the interest rate is 7% per year compounded quarterly? 2. Mr. GO will receive P8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today? I will invest P500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have a choice of making that payment of P500 at the beginning or the end of the quarter (regular annuity or annuity due). In which account will I have more money and by how much? Which account will earn the most interest and by how much? 2. I am looking ahead to my retirement and want to be able to retire at 70 and hope to live to 95 and make P3200 a month from an account compounding monthly at 4.5%. I am currently 27 and I am going to deposit P1000 at the beginning of each quarter until I am 70 in an account that pays 8.5% and is compounded quarterly. Will I have enough to make it happen and by how much am I above or below? Annuity Due 1. What is the future value (as of 10 years from now) of an annuity that makes 10 annual payments of P 5,000, if the interest rate is 7% per year compounded quarterly? 2. Mr. GO will receive P8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?
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Question 1 Retirement Annuity Due vs Regular Annuity 1 Account with More Money The annuity due account will have more money at the end of 32 years Thi... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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