Annuities

An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? What is the present value of the above if the payments are received at the beginning of each year? If you deposit those payments into an account earning 8%, what will the future value be in 10 years? What will the future value be if you opening the account with $1,000 today, and then make the $100 deposits at the end of each year

2.You are examining whether your savings will be adequate to meeting your retirement needs. You saved $1500 last year, and you expect your annual savings to grow 5% a year for the next 15 years. If you can invest your money at 8%, how much would you expect to have at the end of the fifteenth year?

2.You are examining whether your savings will be adequate to meeting your retirement needs. You saved $1500 last year, and you expect your annual savings to grow 5% a year for the next 15 years. If you can invest your money at 8%, how much would you expect to have at the end of the fifteenth year?

acme has just borrowed $1,000,000 from citibank. the loan payments are to be made quarterly, beginning january 1 of the current year. the annual interest is 10%. if the loan is for 5 years, what is the quarterly payment?

1) If you have a 5 year investment which pays 7.5% compounded quarterly and the balance at the end of the fifth year is $643.82, what did you start with? 2) You invest $1,000 today at a 10% compounded semiannually. You will also add $150 the end of each six months to your account for five years. How much will you have at the end of that time? 3) You invest $615 in an account paying 7% with interest compounded semiannually. If the future value of the investment is $923.91, how many years did

What's a deferred annuity.

I need to solve for the Present Value of an Annuity formula for r (rate of interest). The formula is PV=CF((1-(1/(1+R)^T))/R) where PV is Present Value, CF are annual deposits, R is rate of interest, and T is number of periods. I got to this point R=(T"th"√1/-(PV/CF)R+1)-1, which still doesn't solve for R. Can anybody please help me out with solving this equation for R? Much appreciated and thanks and advance.

Does selling fixed annuity make more commission than selling variable annuity? Does contribution amount have effect on their commissions? Thanks for your help!

From my understanding, this can be seen as the opposite of a life insurance plan. What are the benefits of giving up a massive lump sum of cash when say, you could otherwise deposit it in a personal savings account? Are there tax reasons?

Will my judgment be discharged in chapter 7? I have a judgments on my credit from a company that gives you a lump sum of money against your annuity payments. They sued me after they did not receive the first check that they were entitled to. So they were awarded 3 extra years of my annuity. If I filed chapter 7 will the judgment be discharged and will they still be entitled to garnish my annuity payments?

2. Collection float is the amount of time that elapses between ________ a check in an account and the check’s ______, at which point the funds are actually placed in the account. a.depositing, clearing b.issuing, clearing c.writing, being deposited d.receiving, being deposited e. a and b above 4.Sarah’s Computer City sells 5,000 boxes of CD-RW compact discs per year. She determined that she pays $50 to process an order for discs. Her purchase price is $6 for each box of discs and

A taxpayer is considering 3 alternative investments of $10,000. The taxpayer is in the 28% marginal tax bracket for oridinary income and 15% for qualifying captial gains and dividends in all tax years. The selected investment will be liquidated at the end of 5 years. The alternatives are: 1. A taxable corporate bond yielding 6% before tax, and the interest can be reinvested at 6% before tax. 2. A tax-favored bond that will have a maturity value of $13,070 (a 5.5% before tax rate of ret

My husband's MetLife life insurance policy has expired and we have roughly $13.5 K to decide what to do with. We have several options, including taking the cash and putting it in a currently low-interest CD (2.25 best I could find), putting it into a MetLife run money market fund, or buying a MetLife variable annuity with 5% guaranteed interest against possibly more in the stock market and a 7 year term. We would like to retain this money for its original purpose...to pay for my husband's buri

Why do some people object to purchasing an annuity? Also, is it compulsory to purchase an annuity upon reaching the age of 75?

Recently I remarried and have been told that if I do not inform OPM of my new marital status that should I die, my retirement annuity will go to my former wife, is that right? In my divorce decree, my former wife agreed not to touch my retirement pay. Am I protected? Will my new wife be entitled to my retirement pay?

HELP!!! I have an annuity and I need cash now. What should I do??? PLEASE HELP!!!

My mom is 70 years old she had a brain anuerysm in 2003. She was duped into signing up for an annuity that she cant really access until she is 85! She will incur a 20% fee if she tries to cash it out)She needs a home health aid and medical assistance but cannot benefit from her medicaid becuz she has assets. She has 100k+ in this annuity. We called and were told she can transfer ownership w/o penalty to a spouse(she is divorced) or a trust in her name. 1.(WILL THIS BE CONSIDERED AN ASSET

Can you deduct a loss on a tax-deferred variable annuity (non-IRA) and how do you do it? For 10 points and a Best Answer vote. If sold, of course, and the amount received is less than my basis.

Along with Bil O'reilly ,Sean Annuity and pretty much anyone on fox news...

I'm retired and I'm 58, what taxes would I have to pay at the end od the year if I cashed it in for a lump sum

An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAs differ from TDAs in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks. When Bo McSwine was 16, he got an after-school job at his parents' barbecue restaurant. His parents told him that if he put some of his earnings into an IRA, they would contribute an equal a

Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly. (b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is 25 years.

Find the monthly payment that will yield the future value of $105,000 using an ordinary annuity at 9.25% interest for 31 years.

On September 8, Bert Sarkis joined a Christmas club. His bank will automatically deduct $100 from his checking account at the end of each month and deposit it into his Christmas club account, where it will earn 9% interest. The account comes to term on December 1. (a) Find the future value of the account, using an annuity formula. (Round your answer to the nearest cent.) (b) Find the future value of the account, using the compound interest formula. (Round your answer to the nearest cent.) (

jason wants an annuity of $500 per fortnight over 10 years. if the interest rate is 6.8%, what would he expect to pay for the annuity? is this a future value or present value annuity? the answer i have seems to indicate that it's been calculated as if it's a present value, but i'm confused??

A $250000 loan will be paid back through monthly instalments of $1850, with 7% p.a. An Immediate annuity will be used. The formula is A = Ao [ ((1+i)^n – 1) / i ] A = future value Ao = amount of periodic payment n = number of compounding periods i = interest rate How would I solve to find n? Please don't round up when you find the answer.

We sat down tonight with my mother about her estate and we are (and she is ) concerned about not being able to cash in her whole life insurance policies through Shenandoah Life Insurance Co. She has paid the full max. amount that was to be in their, but now she would like to cash her policies out and they said that they won't let her do that. Our question is, are they able to say that to her, that they can't cash out her whole life insurance policies and cancel the accounts through Shenando

I would like to buy a small business and use my retirement annuity to do this.

Can anyone help me figure out how to work out FV? I just don't get it. 35.Benaflek Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(450). Annual cost savings were: $5,000 for year 1; $4,000 for year 2; and $3,000 for year 3. The amount of the initial investment was Present ValuePV of an Annuity Year of 1 at 12% of 1 at 12% 1.893.893 2.7971.690 3.7122.402 A)$10,239. B)$9,158. C)$10,058. D)$9,339.

Does any body know where I could find some hard optimization questions involving finance (ie future value, present value, annuities). Thanks

A cousin of mine who is a financial planner recently asked me if i was interested in buying an annuity. I know that interest rates are low right now and figure that annuities will pay more if interest rates were higher. Is this true? He told me that the one he sells pays 5-6% guaranteed. Does this 5-6% include principal or is it all interest? Doesn't seem like such a great deal to me. Comments?

Monthly deposits of $200 into an annuity pays 7.98% compounded monthly. How long till you have 5000? Show work please.

i have been granted a war pension worth £70k over 35 years (which im appealling with mri results). my Q is, can i sell or 'release' this war pension to an annuities company or something? my normal army pension is very generous and ill keep that thanks :) but this £2k a year is pitiful, i just want to release the equity and sort my mortgage out!! can it be done though? thanks in advance.

An executive prepares for retirement by depositing $2500 into an annuity each year for 10 years. The annuity earns 7% per year. Find the future value for the annuity at the end of 10 years. Show all work.

for example a 20000 loan at 7.7% over 60 months. how would a used car dealership normally calculate the monthly payment? that is 7.7% annual fixed rate

I have a variable annuity "B - RR Series back end design IRA" that I started in 2003 and has been laying dormant for years. I've only invested / funded this account a few times and have quit funding it altogether because my job implemented a 401k that I currently fund. I believe the contract was for seven years so its due to mature this year (2010). The account total is only about $9k and I would like to get the money out. What are my options? and what exactly does back end design mean?

My spouse was medically retired from the military after fifteen years of service with a 30% disability rating. They now state that they hate me in front of our children and wished for one of my children to die because she dosen't act like a soilder! I was told I wouldn't be able to get any of the retirement annuity because they were medically discharged. Is this true? We were married before they joined the military.

My spouse was medically retired from the military after fifteen years of service with a 30% disability rating. They now state that they hate me in front of our children and wished for one of my children to die because she dosen't act like a soilder! I was told I wouldn't be able to get any of the retirement annuity because they were medically discharged. Is this true?

I have a structured settlement but I need cash now. I also get long-term payments and have an annuity. I am looking for a company that has helped thousands and will help me too with one lump sum of cash.

I want to save for a downpayment of a house. I am going to take 11 months to pay off credit cards, but i believe that I can save 5k a year if i put away about 500 a month. I would have 25k that way no doubt about it, but isnt there another way, like an annuity? too lazy to read my accounting book again, so i thought someone would be nice enough to explain that to me. Its good to be taught by a person.

my husband told me to fill out and sign the paper work to send for his annuity trust from the boiler makers where he was fired from,in july we split up and now he says hes going to turn me in,can i be charged?

i signed my husbands name on a document to obtain his annuity from his previous job. my husband gave me permission to fill out the papers and sign his name he doesnt write or read well,i have done this many times for the last 15 years,he wants to turn me in because i want a divorce and hes mad.

I got a nasty gram from the irs. They could not match my 1099 to my return because I entered my annuity income incorrectly (as interest). Where should I enter this information? Tax cut does not help. $1000 gross, $300 taxable 30 with held.

Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. He promised: 1.) That participation in the Program would be Completely voluntary, No longer Voluntary 2.) That the participants would only have to pay 1% of the first $1,400 of their annual Incomes into the Program, Now 7.65% on the first $90,000 3.) That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year, No longer

Lincoln financial group won't let me cash in my annuity. I've had it for 15 years with my husband as beneficiary. He passed away and they are claiming that it is his money and I can't have it. It is my annuity in my name, he was beneficiary. What steps can I take to get my money?

I recently received a message from HESC that said: The New York State Higher Education Services Corporation (HESC) has processed your application for the Tuition Assistance Program (TAP) and/or New York State scholarships. Effective with the 2010-11 academic year, any private pension and annuity income excluded on your or your parent's New York State tax return will be included in Taxable New York State Income for the purpose of determining TAP award eligibility. If you, your spouse (if appl

Amount per payment $2800 Payment at end of each year Time - 16 years rate of investment 4% Compounded annually

A women deposit $290 of her quarterly paycheck into an annity for her childs education. She does this at the beginning of each quarter for 8 years into an account paying 8% per year, compounded quarterly. What is the amount of the annuity and what is the interest earned? Thanks for the help.

My current employer does not offer 401(k) to part-time employees. I have money sitting in two other 401(k)s. I would like to roll it all over into one place and start adding to it again, preferable with as low a load as possible. I am 36 years old. Annuity? Roth? Traditional? I am leaning towards Roth. Let me know your thoughts. Thanks! I understand all the benefits of an IRA, it's more annuity vs. IRA that I am interested in learning more about. I am also interested in finding out