Pension Release: How Much Will An Annuity Pay

by Pension Release by Pension Forecast

Thomas asks…

How much will Phillip be paid each month?

Phillip decides to invest $800,000 in a period annuity that earns 5.2% APR compounded monthly for a period 20yrs. How much money will Phillip be paid each month.
A.$6159.31
B.$5368.43
C.$5200.00
D.$6389.29

Pension Release by Pension Forecast answers:

PMT = PVr / (1 – (1+r)^-n) with r & n adjusted for periodicity

PMT = 800,000*(0.052/12)/( 1- (1+0.052/12)^-240 ) = $5368.43 [ B ] <———-

Donna asks…

How much money will John have?

John decides to invest $1,000,000 in a period annuity that earns 4.9% APR compounded monthly for a period of 15 yrs. How much money will John be paid each month?
A.$7812.13
B.$7855.94
C.$7986.93
D.$7685.98

Pension Release by Pension Forecast answers:

I take it that the money will be paid only for 15 years. Use the formula

PMT = PVr/(1-(1+r)^-n) with r & n adjusted for periodicity

PMT = 1000000*(0.049/12)/(1-(1+0.049/12)^-180)

= $7855.94 [ B ]
———————-

Charles asks…

Interest and annuity?

To save money for a sabbatical to earn a master’s degree,you deposit $2500 at the end of each year in an annuity that pays 6.5% compounded annually. How much will you have saved at the end of five years? And what would be the interest?

Pension Release by Pension Forecast answers:

Sure glad I’m outta school….

Daniel asks…

Help with an annuity!?

You want to set up an account that will pay your child $200 every week for the four years they are in college. You know the account is set up at 6% compounded weekly, and at the end of the four years, you want the balance of the account to be $0. How much money should you open the account with at the beginning of the four years? How much interest does the account accumulate over the course of four years?

Pension Release by Pension Forecast answers:

$36,965.64 is the initial present value.

Sandra asks…

Help with this finance math problem?

At age 20 you begin putting away $100 each quarter in an annuity. The annuity pays 8.2% interest compounded quarterly. How much will you have saved in 40 years? How much interest will you have earned? Show all the work please

Pension Release by Pension Forecast answers:

M3 is exactly right. But if the deposits were made at the beginning of each period, you would multiply his answer by 1 + r or 1 + .0205.

120,530.63 x (1 + .0205)
120,530.63 x 1.0205
123,001.51 This is your answer if the deposits were made at the beginning of each period. The interest earned would be 107,001.51

Powered by Yahoo! Answers

Previous post:

Next post: