A life insurance company will sell-a 20-year annuity paying $1600 at the end of each month for $175,000. What quarterly compounded nominal rate of interest will the annuitant earn?
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?A life insurance company advertises that $50,000 will purchase a 20-year annuity paying $402.80 at the end of each month. What effective rate of return does the annuity investment earn?Safe Insurance Company offers a 40-year annuity. The annuity pays $1,000/year at the end of each year and carries a market rate of 4.3%. How much would you pay today for this annuity?
- A life insurance company will sell a 20 year annuity paying $1,600 at the end of each month for $175,000. What annual compounded nominal rate of interest will the annuitant earn?Uptown Insurance offers an annuity due with semiannual payments for 20 years at 6 percent interest. The annuity costs $200,000 today. What is the amount of each annuity payment?What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.
- The Solvent Insurance Co. will pay you $4,750 a year for 15 years in exchange for $45,000 today. What interest rate will you earn on this annuity?Don't copy otherwise will report. A life insurance company will sell a 17-year annuity paying $1,200 at the end of each month for $110,000. What quarterly compounded nominal rate of interest with the annuitant earn?American General offers 11-year annuity with a guaranteed rate of 6.42% compounded annually. How much should you pay for these annuities if you want to receive payments of 1500$ annually over the 11 year period? How much should the customer pay for this annuity?
- American General offers a 19-year annuity with a guaranteed rate of 4.39% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1900 annually over the 19 year period? How much should a customer pay for this annuity? (Round to the nearest cent.)An insurance company offers a retirement annuity that pays 100,000 per year for 15 years, gorwing at an "inflation compensator" rate of 3%, and sells for $806,070. What is the interest rate? show your workWhat is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?