Reference no: EM132946847

Questions - The below questions are belong to future value annuity and present value annuity:

Q1. Your dad just retired. His company pension plan will pay him $5000 at the end of each year for the next 20 years. He asks if he can receive the entire balance of his pension account today, so that he can merge this with other investments. How much money should his company give him today? The interest rate is 9%.

Q2. Mr. Bakhtiyar recently graduated and got his first real job. He decides to set up a retirement fund. He will deposit $2000 into this account at the end of each year from now until retirement. He will retire in 35 years. His retirement fund will earn 12% interest. How much will his retirement fund be worth when he retires?

Q3. Ms. Fatema wants to accumulate a sum of money in her bank account by depositing $1500 at the beginning of each month. If interest on the account is 6% compounded quarterly for 4 years, how much she will end up with in 4 years?

Q4. Mr. Irfan deposited $250 at the end of each month for two years into his savings account. The bank charges 5% interest compounded monthly. What will the balance be after 11 years?