Annuities Answers

You put $200 at the end of each month in an investment plan that pays an APR of 4.5%. How much will you have after 18 years? Compare this amount to the total deposits made over the time period.a.$66,370.35; $43,200c.$66,380.12; $43,000b.$66,295.23; $43,000d.$66,373.60; $43,200

At age 35 you start saving for retirement. If your investment plan pays an APR of 6% and you want to have $1.5 million when you retire in 30 years, how much should you deposit monthly? Assume an ordinary annuity.a.$1,453.26c.$1,483.26b.$1,463.26d.$1,493.26

Find the savings plan balance after 24 months with an APR of 2.5% and monthly payments of $400. Assume an ordinary annuity.a.$10,833.20c.$8,623.52b.$9,833.55d.$7,325.81

When you graduate college at the age of 20, you want to start saving up for retirement. If your investment pays a fixed APR of 8.5% and you want to have $500,000 when you retire in 45 years, how much would you need to deposit, at the beginning of each month, to reach this goal?a.$79.53c.$81.98b.$80.13d.$82.65

Sandra deposits $3,000 at the beginning of each semiannual period for 12 years at 10% interest compounded semiannually. Determine the amount she will have in the account after 12 years. Round to the nearest cent.a.$130,506.00c.$121,291.43b.$140,181.30d.$70,568.14

Suppose that a family wants to start a college fund for their child. If you invest in an account that pays 5.5% and want the fund to have a value of $53,000 after 18 years, how much should you deposit monthly? Assume an annuity due. a.$142.98c.$143.49b.$143.30d.$145.52

As part of your retirement plan, you want to set up an annuity in which a regular payment of $50,000 is made at the end of each year. You need to determine how much money must be deposited earning 4.5% compounded annually in order to make the annuity payment for 20 years. a. $647,553.08 c. $655,355.12 b. $650,396.82 d. $658,210.10 Please select the best answer from the choices provided

When you graduate college at the age of 20, you want to start saving up for retirement. If your investment pays a fixed APR of 9% and you want to have $2.5 million when you retire in 45 years, how much would you need to deposit, on a monthly basis, to reach this goal? Assume an ordinary annuity.a.$339.55c.$337.62b.$338.41d.$336.21

A friend creates an IRA (Individual retirement account) with an APR of 6.25%. She starts the IRA at the age of 25 and deposits $50 at the end of each month. How much will her IRA contain when she retires at the age of 65?a.$106,435.62c.$106,601.32b.$106,595.63d.$106,613.15

Find the savings plan balance after 1 year with an APR of 13% and monthly payments of $100. Assume an ordinary annuity.a.$1,271.18c.$1,273.16b.$1,272.17d.$1,274.15