3) Phyllis Vance is currently age 45. She uses a single premium to purchase an annuity...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3) Phyllis Vance is currently age 45. She uses a single premium to purchase an annuity due with the following payment schedule. She will receive $1000 at the beginning of the year for the first 5 years, $2000 at the beginning of the year for the next five years, and then $3000 at the beginning of the year for the rest of her life. Using the information below, how much does she need to pay for this annuity? (7 marks) i) ä45= 14.112 ii) ä45:101= 7.648 ä45:15]=9.957 vi) vii) ä50:101= 7.574 SP45 = 0.977 10P45= 0.943 v = 0.94 3) Phyllis Vance is currently age 45. She uses a single premium to purchase an annuity due with the following payment schedule. She will receive $1000 at the beginning of the year for the first 5 years, $2000 at the beginning of the year for the next five years, and then $3000 at the beginning of the year for the rest of her life. Using the information below, how much does she need to pay for this annuity? (7 marks) i) ä45= 14.112 ii) ä45:101= 7.648 ä45:15]=9.957 vi) vii) ä50:101= 7.574 SP45 = 0.977 10P45= 0.943 v = 0.94
Expert Answer:
Answer rating: 100% (QA)
ANSWER Phyllis Vance needs to pay 94 for this annuity EXPLANATION i The present value of an annuity ... View the full answer
Related Book For
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Posted Date:
Students also viewed these accounting questions
-
A contractor submits a bid on a project for which more research and development work needs to be done. It is estimated that the total cost of satisfying the project specifications will be $20 million...
-
A building contractor is preparing a bid on a new construction project. Two other contractors will be submitting bids for the same project. Based on past bidding practices, bids from the other...
-
A farmer estimates that if he harvests his soybean crop now, he will obtain 1,000 bushels, which he can sell at $3.00 per bushel. However, he estimates that this crop will increase by an additional...
-
Are there accomplishments for which you individually receive credit which others helped you accomplish?
-
On June 30, 2008, Thorpe Companys total current assets were $250,000 and its total current liabilities were $125,000. On July 1, 2008, Thorpe issued a long-term note to a bank for $25,000 cash....
-
Given that all of the choices are true, which one provides the most logical cause for the action described in the statement immediately following this underlined portion? A. NO CHANGE B. This magma...
-
Use the characteristics of a project to differentiate it from a nonproject. LO8
-
Laraby Company produces a single product. It sold 25,000 units last year with the following results. Sales .........$625,000 Variable costs ...... 375,000 Fixed costs ........1, 50,000 Income before...
-
The value of any security, including bonds and stocks, is the future value of the cash flows paid by the company that include the coupon payments and the maturity value of the bond which is $1,000....
-
Answer the following questions. a. What are the strengths of Professor Waddocks analysis? What are the weaknesses? What does the fact that there were frauds and unethical behavior long before the...
-
Chapter 3 Grove and Cipher book Note, these questions refer to the follow-up study. What was the sampling inclusion criteria for the study? Were these criteria appropriate for this study? What was...
-
Propose how these mechanisms can be used to build a strategic business partnership, close the gap between management / leadership and employees while building a cohesive culture that adds value,...
-
1.What risks does the company face? 2. What is role for ERM at Swissgrid or most any company? 3. What risk management processes has Meyer installed at Swissgrid? Assess their strengths and...
-
Elizabeth's Country Wares How many workers does Elizabeth have and what does each of them do? What type of work does Elizabeth do for the CP product line? How long does it take to do the underglazing...
-
Do you support the policy of not allowing some Chinese nationals to attend graduate school in the United States because of national security concerns?
-
Using your product or service name or category, do a search using the following phrase: Find a (insert the name of your product or service here...) near me. For instance, using my Mobile Notary...
-
1 F.D. Roosevelt purchased an apartment building for $300,000. Accelerated depreciation was taken in the amount of $260,000 before the building was sold for $250,000. Straight-line depreciation would...
-
In Exercises 1558, find each product. (9 - 5x) 2
-
Jon Payne, tennis coach, kept a record of the most serious type of errors made by each of his players during a 1-week training camp. The data are stored in the data file Tennis. a. Construct a Pareto...
-
A bank holds 720 delinquent mortgages in residential properties. It required an estimate of the mean current appraised value of these properties. Initially, a random sample of 20 was appraised, and a...
-
Suppose that a dependent variable is related to K independent variables through a multiple regression model. Let R2 denote the coefficient of determination and R2, the corrected coefficient. Suppose...
-
A new dental bonding agent. Refer to the Trends in Biomaterials & Artificial Organs (Jan. 2003) study of a bonding adhesive for teeth, presented in Exercise 8.154 (p. 455). Recall that the adhesive...
-
What is the difference between a design study and an observational LO4 study?
-
The following table shows a partially completed ANOVA table for a two-factor factorial experiment. Source df SS MS F A 5 3.6 B 3 10.2 A * B 4.1 LO4 Error 19.7 Total 47 a. Complete the ANOVA table. b....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App