Calculating Deferred Annuities

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Calculating Deferred Annuities

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Definitions: A deferred annuity is like a regular annuity, expect the first payment is delayed by a certain number of periods.
Q1. Marc has $300,000 with which to purchase an ordinary annuity delivering monthly payments for 20 years after a 10-year period of deferral. What monthly payment will he receive if the undistributed funds earn 5% compounded semi-annually?
Formula:
Annuity formula: PV=PMT[(1−(1+i)^(−n))/i]
Q2. Natalie wishes to purchase an annuity for her retirement. Natalie is 30 years old today, and she wants the first payment to occur in 35 years when she turns 65. She would like the annuity
to make 20 equal annual installments of $20,000. How much will the annuity cost today, if i^((2))=10%?

Пікірлер: 13

@StudyForceOnline 11 ай бұрын

Question 2: kzfaq.info/get/bejne/gsmni5CV0M-7dIE.html

@user-vp9fb2do5h 9 ай бұрын

hello , may i please have an answer for the question two?

@StudyForceOnline 9 ай бұрын

It's a pinned comment, kzfaq.info/get/bejne/gsmni5CV0M-7dIE.html

@ainsleywilson2321 8 ай бұрын

Thanks for responding. The solution I got is $486,281.50 as per 1.049486yx10 that is 120/12 =1.620938342 x 300,000 = $486,281.50. I have not yet figured out how you arrived at $152, 179.29 for the denominator.

@ainsleywilson2321 8 ай бұрын

I attempted question 1 about Marc and the deferred Annuity . I followed what you did but failed to get the answers given. I have a HP10bll+ calculator and would be appreciative if you could tell me the keystrokes that would agree your answer and further my understanding.

@StudyForceOnline 8 ай бұрын

Hi Ainsley, I just downloaded the emulator for that calculator; while the calculations shown here can technically be done on that device, I do not know the keystrokes required since I do not have experience with the built-in functions. I know many business courses require a financial calculator such as this one, but unfortunately not ours - we resort to using a two-line scientific calculator instead as was shown in the video.