Exercise 14.1 #5 algo (Calculator Version)

A deferred annuity consists of an ordinary annuity paying $2,700 semiannually for a 10-year term after a 5-year period of deferral. Calculate the deferred annuity's present value using a discount rate of 4.7% compounded quarterly.(Do not round intermediate calculations and round your final answer to 2 decimal places.)

Present value of deferred annuity$

Exercise 14.1 #2

A life insurance company can invest funds to earn (after expenses) 8% compounded quarterly. A client wishes to purchase a five-year ordinary annuity that will commence 3.5 years from now. What will the insurance company charge for the annuity, if the quarterly payments are $750?(Round your answer to the nearest cent.)

Charge$

Exercise 14.1 #1 algo (Calculator Version)

The first of 12 semiannual payments of $2,500 will be made 6 and 1/2years from today. What is the present value of this deferred annuity using a discount rate of 7.5% compounded semiannually?(Do not round intermediate calculations and round your final answer to 2 decimal places.)

Present value of deferred annuity$

Exercise 14.1 #6

The first quarterly payment of $750 in a five-year annuity will be paid 3.75 years from now. Based on a discount rate of 8.25% compounded monthly, what is present value of the payments today?(Round your answer to the nearest cent.)

Present value$

Exercise 14.1 #8

Mr. Haddit plans to retire eight years from today. He projects that he will need $30,000 per year in his retirement, which he assumes will be for 15 years. The first payment will be nine years from today. To fund his retirement, Mr. Haddit will invest a lump amount today and later use it to sustain the 15 withdrawals. If his investment earns 6% compounded annually, how much must he invest today?(Round your answer to the nearest cent.)

He must invest$