1. Pensions Meg's pension plan is an annuity with a guaranteed return of 7% per year (compounded quarterly). She would like to retire with a pension of $20,000 per quarter for 25 years. If she works 41 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.) 2.  You want to buy a 5 year bond with a maturity value of $8,000, and you wish to get a return of 5.5% annually. How much (in dollars) will you pay? (round to nearest cent) 3. Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated intrest rate after stated amount of time. 12.9% per year, compounded monthly, after 9 years FV=$ 4.Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly). She can afford to put $300 per month into the fund, and she will work for 35 years before retiring. If her pension is then paid out monthly based on a 25 year payout, how much will she receive per month? (round to nearest cent).

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
Question
1. Pensions Meg's pension plan is an annuity with a guaranteed return of 7% per year (compounded quarterly). She would like to retire with a pension of $20,000 per quarter for 25 years. If she works 41 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.)
2.  You want to buy a 5 year bond with a maturity value of $8,000, and you wish to get a return of 5.5% annually. How much (in dollars) will you pay? (round to nearest cent)
3. Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated intrest rate after stated amount of time.
12.9% per year, compounded monthly, after 9 years
FV=$
4.Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly). She can afford to put $300 per month into the fund, and she will work for 35 years before retiring. If her pension is then paid out monthly based on a 25 year payout, how much will she receive per month? (round to nearest cent).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning