Ricardo is a 30-year-old pack-and -a-half per day smoker who pays $10.49 per pack of cigarettes. Observing an uncle suffering from emphysema, he decides to stop smoking. To help motive and reward himself, he decides to put the cost of cigarettes into an annuity until he is 65. Assuming an annuity with an interest rate of 5.1% compounded monthly and investing the cost of 45 packs each month. a) Find the future value when Ricardo is 65 b) Find the amount he can withdraw from his annuity each month for 15 years after he retires.
Related Posts
Question 1 Janet Brown is 45 and divorced. She has two children who live with her and are dependent on her. Stephen is 12. Sarah is 17 and has been certified as eligible for the disability credit. Janet’s financial information for 2019 and 2020 includes the following: 2020 2019 Salary and taxable benefits $105,000 $100,000 Car expenses deducted in computing employment income
Uncategorized / By
Scenario: You are employed by Pacific IT Solutions as a solutions integrator. Your job description is to implement IT solutions and provide customer support. One of your long-time customers, Western Mining, has their head office in Sydney and is opening a branch office in Brisbane. You have been contracted to setup the network. A meeting has been held to start the project. The minutes of the meeting are as follows:
Uncategorized / By
