Question: rob has a pension plan and will receive a pension annuity of $19,000 for 19 years starting next year. After 19 payments, the following year

rob has a pension plan and will receive a pension annuity of $19,000 for 19 years starting next year. After 19 payments, the following year (t=20) she receives $10,000, which will then grow at 4% per year thereafter. His life expectancy from today is 40 years (he will receive 40 total payments). The interest rate is 8%. What are these two annuity payments worth today?

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!

Instructions Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May. 1 2 Materials inventory, May 1 3...

Jill, has a pension plan and will receive a pension annuity of $15,000 each year for 15 years starting next year. After 15 payments, the following year (t=16) she receives $10,000, which will then...

I need help from a Financial expert who is very familiar with exchange rate exposure & payout policy.I will adjust the price as you suggest. For some reason I am not able to do it here. Please be...

GARY AND JUDY PARKER PERSONAL INFORMATION AND BACKGROUND Gary and Judy Parker live in Missouri and have been married for 19 years. They have two children, John and Julie, ages 17 and 15,...

Need to complete 10 homework but now i need 5 homework then after some time 5 homework more. Here it is attachment. Chapter 5 HW Questions [ALL OF THESE MUST BE DONE IN EXCEL] 1. Future value: Chuck...

Mind solving should show you got your answers 31. As a mid-size company, you have a pension plan which pays out $10 million a year forever. The first payment is exactly one year from now. The term...

Help needed please. Must be in excel. The bottom image is a figure reference. And exercise 2.3.2 is for reference for 3.4.2 Example 2.3.2 DOES NOT NEED TO BE ANSWERED IT IS FOR REFERENCE 33 Goal...

I am short on time and need assignment 6.34 done, before 6 if possible. If someone can help. Problem 6.34 Present Value Tirade Owens, a professional athlete, currently has a contract that will pay...

Please Help, my team and I have different answers. Problem 6.34 Present Value Tirade Owens, a professional athlete, currently has a contract that will pay him a large amount in the first year of his...

Your help counts eith explanation 60 Price (Shour) 10 100 200 300 400 500 600 700 800 900 1000 Quantity (hours/week) 28. The figure above illustrates the demand and supply of Economics 101 tutoring...

The following needs to be included in the Comprehensive Financial Plan: oCover letter to the client oOutline your major findings in the work that you completed and any urgent actions they should take...

Why would a taxpayer be willing to pay a lawyer to provide a written opinion to a third party of the tax treatment to be accorded a particular set of transactions?

1. The current interest rates are at 8.50%. The bond youre holding pays you $45 semi-annually for the next ten years. What is the present value of your bond, which has a maturity value of $1,000? 2....

The balanced scorecard attempts to solve what major issue associated with traditional accounting reports ? Question content area bottom Part 1 A . Traditional accounting reports are not easily...

please answer Lui Coffee Company roasts and oacks coffee beans. The process begins by placing codfee beans into the Roasting Department, From the flosesting Department, coffee beans are the...