Question: A defined-benefit retirement plan - once you retire - will pay $30,000 end of the first year. Annual payments will increase by three-percent each year.

A defined-benefit retirement plan - once you retire - will pay $30,000 end of the first year. Annual payments will increase by three-percent each year. You will receive 40 payments. What is the present value at retirement if the discount rate is 7 percent? (Hint: growing annuity formula). $381,212 $456.713 $586,620 $642,311 $265,311

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Use the T Accounts for Moose Inc to create their Trial Balance as of December 31, 2022. The account numbers are in parentheses next to the account name. Trial Balance Account Number 100 110 120 130...

A defined-benefit retirement plan once you retire - will pay $30,000 per year for 40 years and increase the annual payment by three-percent each year. What is the present value at retirement if the...

DIN Dell La Links Li Bing SO * A defined-benefit retirement plan offers to pay $50,000 per year for 40 years and increase the annual p ayment by three-percent each year. What is the present value at...

if i can please have the answers in the excel form where they go in the pictures, that be terrific and appreciated. BTW. . .A. Merge Center - $ - % 848 Conditional Format as Cell Formatting Table...

questions 2,3,5,9,13,14,26,29,37,38 please Please see the preface for more information. Basic Problems What is the value of your investment after one year? Multiply $3,000 x 1.12. a. Fu C. 1. You...

1. You just had your 24th birthday today and have accepted a position at CDI.com. Your salary will be paid annually with the first year's salary (of $40,000 ) paid at the end of the first year of...

An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 11%...

Carolyn just turned 52 years of age and works for the state of California. She started working there on her 23 rd birthday, just after she graduated from college. This coming year will be her 30 th...

Victor, now age 61, and Maria, age 59, plan to retire at the end of the year. Since his employer changed from a defined-benefit retirement plan to a defined-contribution plan ten years ago, Victor...

What is the relationship among the mean, median, and mode in a symmetric distribution? Multiple Choice They are all equal. The mean is always the smallest value. The mean is always the largest value....

A store owner needs to decide how much to order from its supplier of a certain product. In order to do that, he needs to forecast the demand for the product for month 9. The demand for the first...

Ale is explaining MM Proposition II without taxes to a junior analyst in the team. She states, "Capital structure decision has no impoct on overall cost of capital: so cost of equity and cost of debt...

https://media.cheggcdn.com/media/e59/e5900ba1-02b0-44ab-8246-fb980e24e7c1/phpDkQ6Ux

=+the twentieth century. Use the Solow model to forecast the effect of this slowdown in population growth on the growth of total output and the growth of output per person. Consider the effects both...

=+8. Consider how unemployment would affect the Solow growth model. Suppose that output is produced according to the production function Y = K[(1 u)L] 1 , where K is

=+ a. A change in consumer preferences increases the saving rate.