Problem regarding the annuity continue to pay

Reference no: EM131016857

Ty recieved a separation payment of $25000 from his former employer when he was 35 years old. He invested the money at 5.5% compounded semi-annually. When he was 65, he converted the balance into an ordinary annuity paying $6000 every three months with interst at 6% compounded quarterly. For how long will the annuity continue to pay him?

The annuity will continue to pay him for __ quarterly periods.

Reference no: EM131016857

Questions Cloud

Calculate cost of forward contract and option : Please define and explain each of the above hedges. (B) Assume the following: LC Exposure = 10,000; Spot Rate = $1.00/LC1.00; 1 Year Forward = $0.98/LC1.00; 1 Year Strike Price = $0.975; Premium = $0.005; and WACC = 8.0% p.a. Please calculate the ..

Worth of face value bonds : A 7% bond is selling to yield 4 and 1/2%. The bond pays interest semi annually and the investor who owns 10,000 worth of face value bonds would receive_____ the next time interest is paid.

Break-even offer price in singapore dollars : Suppose Spartan is thinking about divesting the subsidiary and has received an offer price of S$13,700,000. Should it divest the subsidiary if its discount rate is 16%? What is the break-even offer price in Singapore dollars?

What is the difference between statement : What is the difference between Statement and PreparedStatement interface?

Problem regarding the annuity continue to pay : Ty recieved a separation payment of $25000 from his former employer when he was 35 years old. He invested the money at 5.5% compounded semi-annually. When he was 65, he converted the balance into an ordinary annuity paying $6000 every three months..

What are the main decisions employers : What are the main decisions employers should address in reaching promotion decisions?

Prepare the journal entry for the exchange : Prepare the journal entry for the exchange of these similar assets. Prepare journal entries for the following for Bartz, Inc. May 11 Replaced the engine in a Van #1, paying cash of $5,400 May 18 Paid cash for a tune-up of the engine in Van #2 of $570..

What are gain sharing plans : What are gain sharing plans and how are they different from profit sharing and which is better?

Discuss national and international ethical frameworks : Identify social and spiritual factors that influence the health professional values and beliefs in ethical decision making.

User Account

All Pages