Annuities

posted by .

You are earning an average of 46500 and will retire in 10 years. If you put 20% of your gross average income in an ordinary annuity compounded at 7% annually, what will be the value of the annuity when y ou retire? I am not sure how to figure this out and what it will be. I am using the calculato to figure this out. Can someone get me started here. Thanks

  • Annuities -

    Amount = .2(46500((1.07)^10 - 1)/.07

    Using the formula

    Amount = payment((1+i)^n - 1)/i

  • Annuities -

    I am trying to do this by calculator here and not sure how to do it

  • Annuities -

    Sn = R[(1+i)^n - 1]/i

    Assuming you mean 20% per year going into the retirement fund

    Sn = 9300[(1.07)^10 - 1]/.07 =

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Annuities

    Can someone tell me if this is ordinary annuity of future or ordinary values sinking funds present value or what is it. The question is You are earning an average of 46500 and will retire in 10 years. If you put 20% of your gross average …
  2. business math 205

    Calculate the future of the following Ordinary Annuities. Round to the Nearest cent when necessary. Annunity Payment ($3,000) Payment Frequency Every (6) Months Time Period (years) 10 Interest Compounded (Semiannually) Future Value …
  3. Business Math 205

    Calculate the PRESENT VALUE of the following ORDINARY ANNUITIES. Round to the nearest cent when necessary. Annuity Payment:($3,000) Payment Frequency: (Every Year) Time Period YRS:(15)Nominal Rate%:(10)Interest Compounded:(Annually)Present …
  4. algebra

    Suppose a retiree wants to buy an ordinary annuity that pays her $2,000 per month for 20 years. If the annuity earns interest at 3.5% interest compounded monthly, what is the present value of this annuity?
  5. Finite Math

    The amount (future value) of an ordinary annuity is given. Find the periodic payments. A = $2500, and the annuity earns 6.5% compounded annually for 4 years.
  6. Math

    Amy Powell invested $8500 twice a year in an ordinary annuity at New York Securities for a period of 5 years at an annual interest rate of 10% compounded semiannually. Using the ordinary annuity table , calculate the total value of …
  7. math

    James has set up an ordinary annuity to save for his retirement in 18 years. If his monthly payments are $225 and the annuity has an annual interest rate of 8% compounded monthly, what will be the value of the annuity when he retires?
  8. math

    Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 3.5%/year compounded monthly. If the future value of the annuity after 12 years is $50,000, what was the size of each payment?
  9. Finite math

    Consider the following annuity scheme: regular payments of $200 are made every two months at the end of the month (in other words, there are six equally spaced payments over the year) into an account with a nominal rate of 6% compounded …
  10. Math

    James has set up an ordinary annuity to save for his retirement in 19 years. If his monthly payments are $250 and the annuity has an annual interest rate of 7.5%, what will be the value of the annuity when he retires?

More Similar Questions