An insurance company is offering monthly payments of $ 250 for the next twenty years in exchange for a one- time payment of $40, 000 today. What is the rate of return on this offer? 3.63% Correct Answer 4.36 % 5.21 % 6.39% Incorrect Response 7.50%
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- We Pay Insurance Co. will pay you $1,250 each quarter for 30 years. You want to earn a minimum interest rate of .9'percent per quarter. What is the most you are willing to pay today for these payments?Multiple Choice answersA. $88.008.36B. $86,490.98 C. $91,043.14D. $90,621.63E. $269.992.65If you deposit $2 comma 7002,700 today into an account earning an annual rate of return of 1313 percent, what will your account be worth in 4040 years (assuming no further deposits)? In 5050 years? Question content area bottom Part 1 Click on the table icon to view the FVIF table: LOADING... . In 4040 years, your account will be worth $enter your response here. (Round to the nearest cent.)Ma1. An insurance company advertises that $2,483.76 will purchase a 8 year annuity that pays $200 semi-annually at the end of the period. What quarterly compounded rate of return does the investment earn? Note: Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Rate of return = 0.00%
- QUESTION ONE A medical insurance company has offered to pay you a medical refund today of K350, 000.00 or to pay K650, 000.00 in three years time. If interest rates in the market were 20% compounded semi annually which of the two options would be worthwhile? If you planning to invest some funds in the following manner; K20,000 at the end year 1,K30,000 at the end of year 2 and K10,000 at the end of year 3.How much would this account have at the end of year 4 assuming the funds earn interest of 12% compounded per annum You have inherited two endowment funds from your grandfather. One fund will pay K30, 000.00 annually indefinitely, while the other fund will pay K12, 000 annually for 20years.The insurance company has offered to buy this fund from you. Calculate the combined market value on such fund if interest were 18% in the market.…ook ences Chris Seals has just given an insurance company $62,525. In return, she will receive an annuity of $7,458 for 12 years. a. At what rate of return must the insurance company invest this $62,525 to make the annual payments? (Use a Financial calculator to arrive at the answers. Round the final answer to 3 decimal places.) Rate of return b. What rate of return is required if the annuity is payable at the beginning of each year? (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Rate of returnQuestion Help Acme Annuities recently offered an annuity that pays 4.2% compounded monthly. What equal monthly deposit should be made into this annuity in order to have $70,000 in 10 years? The amount of each deposit should be $. (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. Clear All Check Answer All parts showing ר
- Finance Find the savings plan balance after 18 months with an APR of 6% and monthly payments of $800. Assume an ordinary annuity. a. $15,028.63 c. $15,360.28 b. $15,280.36 d. $15,306.82 Please select the best answer from the choices provided A B C Dpls answer and show cash flow diagram I will invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have achoice of making that payment of $500 at the beginning or the end of the quarter (regular annuity orannuity due). In which account will I have more money and by how much? Which account will earn themost interest and by how much? Ans: Regular Annuity‐ $249981.20, Interest = $185981.20; Annuity Due‐ $254543.36, Interest =$190543.36You make a payment of of $ 24 with Apr of 5.2 % After 90 years what will you have in the account n=12 The account has 0 value PMT = 24 Apr = 0.052 Y = 90 n = 12
- Find the future value of this loan: $20,862 at 11.4% for 14 months. Group of answer choices A. $23636.65 B. $25657.00 C. $263536.51 D. $40,000.00Give typing answer with explanation and conclusion Find the interest rate (or rates of return) in each of the following situations. Do not round intermediate calculations. Round your answers to the nearest whole number. You borrow $740 and promise to pay back $814 at the end of 1 year. % You lend $740 and receive a promise to be paid $814 at the end of 1 year. % You borrow $60,000 and promise to pay back $171,156 at the end of 8 years. % You borrow $11,000 and promise to make payments of $3,359.50 at the end of each of the next 5 years. %Your insurance agent is trying to sell you an annuity that costs $80,000 today. By buying this annuity, your agent promises that you will receive payments of $445 per month for 30 years. What is the rate of return expressed as an APR on this investment? Multiple Choice O 4.91% 5.32% 4.43% 5.23%