Leroy Santos made deposits of $800 at the end of each year for 6 years. Interest is 9% compounded annually. What is the value of Santos' annuity at the end of 6years?
Abby Slay who contributes $3,000 annually to a 401(k) plan with an employer match of $1,500 a year at 8% interest. How much would Abby accumulate during an uninterrupted 30-year career?
If Jim Moore invests $200 at the beginning of each month in his 14-year-old child's education at 6% interest, how much will Jim have when the child is ready for college at 18 years of age?
Mel Jones, a 31-year-old puts $2,000 a year in an individual retirement account. In 35 years if the money is compounded at 9% annually, how much will Mel have earned? What is the cash value of this annuity due?
Imagine that you have saved $500,000 by the time you retire at age 65 and want to receive $4,000 a month ($48,000 a year) for living expenses for the next 14 years. If your money earns 4% compounded annually, would your $500,000 provide you with what you need? What should you have in your retirement account?
Ellen Sullivan, an employee at Wal-Mart, made deposits of $900 at the end of each year for 7 years. Interest is 7% compounded annually. What is the value of Sullivan's annuity at the end of 7 years?
Assuming the stock market earns the historical market average return of 10.5%, you will have a nice retirement nest egg if you save $5,000 a year for 31 years. What is the value of this ordinary annuity?
Alice Cooper begins saving at age 35 and wants to withdraw $25,000 at the end of each year for 10 years after she retires at age 65. At 8% interest compounded annually, how should Alice invest today?
If you were able to invest only $1,200 at the end of each quarter and placed it in a vehicle that produced an average annual return of 6% compounded quarterly, how much would you receive in 10 years?
Sun Publications reported that in 11 years it would cost approximately $80,000 for 4 years at a public university and $240,000 to send your child to a private university. Bank A quoted 6% interest compounded annually. Bank B quoted 7% compounded annually. (a) How much would you have to deposit in Bank A each year to pay for the public university? (b) How much would you have to deposit in Bank A each year to pay for the private university?
