Which of the following is not equal to .01? 4. O 102 O 1% O110 O one one-hundredth You are… 1 answer below »

Which of the following is not equal to .01? 4.

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O 102

O 1%

O110

O one one-hundredth

You are considering an annuity that costs $160,000 today. The annuity pays $17,500 a year at an annual interest rate of 7.5 percent. What is the length of the annuity time period?

 

A.

13 years

B.

14 years

C.

15 years

D.

16 years

E.

17 years

 

Today, you are retiring. You have a total of $289,416 in your retirement savings. You want to withdraw $2,500 at the beginning of every month, starting today and expect to earn 4.6 percent, compounded monthly. How long will it be until you run out of money?

 

A.

29.97 years

B.

8.56 years

C.

22.03 years

D.

12.71 years

E.

18.99 years

 

Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $250 a month for the next 20 years. What is the rate of return on this investment?

 

A.

3.75 percent

B.

2.47 percent

C.

1.88 percent

D.

2.45 percent

E.

3.67 percent

 

You have been investing $250 a month for the last 13 years. Today, your investment account is worth $73,262. What is your average rate of return on your investments?

 

A.

8.94 percent

B.

9.23 percent

C.

9.36 percent

D.

9.41 percent

E.

9.78 percent

Please show explanation for all solutions