- +1-530-264-8006
- info@tutorsglobe.com

Amount in the account upon retirement

Question 1. James plans to fund his individual retirement account, beginning today, with 20 annual deposits of $2,000, which he will continue for the next 20 years. If he can earn an annual compound rate of 8 percent on his deposits, the amount in the account upon retirement will be

1. $21,207.

2. $91,524.

3. $98,846.

4. $19,636.

Question 2. A generous benefactor to the local ballet plans to make a one-time endowment which would provide the ballet with $150,000 per year into perpetuity. The rate of interest is expected to be 5 percent for all future time periods. How large must the endowment be?

1. $ 750,000

2. $3,000,000

3. $ 300,000

4. $1,428,571

Question 3. The future value of a $10,000 annuity due deposited at 12 percent compounded annually for each of the next 5 years is

1. $63,530.

2. $40,376.

3. $36,050.

4. $71,154.

Question 4.The future value of an ordinary annuity of $2,000 each year for 10 years, deposited at 12 percent, is

1. $11,300.

2. $35,098.

3. $39,310.

4. $20,000.

Question 5.Indicate which of the following is true about annuities.

1. An ordinary annuity is an equal payment paid or received at the beginning of each period.

2. An ordinary annuity is an equal payment paid or received at the end of each period that increases by an equal amount each period.

3. An annuity due is a payment paid or received at the beginning of each period that increases by an equal amount each period.

4. An annuity due is an equal payment paid or received at the beginning of each period.

Now Priced at $20 (50% Discount)

Recommended **(98%)**

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment
## Q : Problem on future value of an annuity

The IF for the future value of an annuity is 4.5 at 10% for 4 years. If we wish to accumulate $8,000 by the end of 4 years, how much should the annual payments