5-10A. (Solving for i in annuities) Nicki Johnson, a sophomore mechanical engineering student, receives a call from an insurance

5-10A. (Solving for i in annuities) Nicki Johnson, a sophomore mechanical engineering student, receives a call from an insurance agent who believes that Nicki is an older woman ready to retirefrom teaching. He talks to her about several annuities that she could buy that would guaranteeher an annual fixed income.
The annuities are as follows:
ANNUITY——INITIAL PAYMENT—————AMOUNT OF MONEY———————-DURATION
———————INTO ANNUITY—————-RECEIVED PER YEAR——————–OFANNUITY
———————-(AT t = 0)—————————————————————————–(YEARS)
A——————– $50.000—————————– $8,500—————————————-12
B——————– 60,000——————————- 7,000—————————————– 25
C——————– 70,000——————————–8,000——————————————20
If Nicki could earn 11 percent on her money by placing it in a savings account, should she placeit instead in any of the annuities? Which ones, if any- Why?
5-11A. (Future value) Sales ofa new finance book were 15,000 copies this year and were expectedto increase by 20 percent per year. What are expected sales during each of the next three years? Graph this sales trend and explain.
5-12A. (Future value) Reggie Jackson, formerly of the New York Yankees, hit 41 home runs in1980. Ifhis home-run output grew at a rate of 10 percent per year, what would it have been overthe following five years
5-13A. (Loan amortization) Mr. Bill S. Preston, Esq., purchased a new house for $80,000. Hepaid $20,000 down and agreed to pay the rest over the next 25 years in 25 equal annual paymentsthat include principal payments plus 9 percent compound interest on the unpaid balance. Whatwill these equal payments be?


Buy plagiarism free, original and professional custom paper online now at a cheaper price. Submit your order proudly with us



Essay Hope