Finding jill morans retirement annuity s unrise

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Unformatted text preview: s view of the retirement annuity. b. How large a sum must Sunrise accumulate by the end of year 12 to provide the 20-year, $42,000 annuity? c. How large must Sunrise’s equal annual end-of-year deposits into the account be over the 12-year accumulation period to fund fully Ms. Moran’s retirement annuity? d. How much would Sunrise have to deposit annually during the accumulation period if it could earn 10% rather than 9% during the accumulation period? e. How much would Sunrise have to deposit annually during the accumulation period if Ms. Moran’s retirement annuity were a perpetuity and all other terms were the same as initially described? WEB EXERCISE WW W Go to Web site www.arachnoid.com/lutusp/finance_old.html. Page down to the portion of this screen that contains the financial calculator. 1. To determine the FV of a fixed amount, enter the following: Into PV, enter enter 8. 1000; into np, enter 1; into pmt, enter 0; and, into ir, 188 PART 2 Important Financial Concepts Now click on Calculate FV, and 1080.00 should appear in the FV window. 2. Det...
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