I am currently renting and have a chance to buy a home for a good price. Should I cash in my annuity to pay off my debt, pay down cars, and put a down payment on a house?
Please I’m really needing cash at the present and need to know this.
Remember, not only did you contribute to Social Security but your employer did too. It totaled 15% of your income before taxes. If you averaged only 30K over your working life, that’s close to 0,500. If you calculate the future value of ,500 per year (yours & your employer’s contribution) at a simple 5% (less than what the govt. pays on the money that it borrows), after 49 years of working (me) you’d have 2,919.98. If you took out only 3% per year, you receive ,787.60 per year and it would last better than 30 years, and that’s with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you’d have a lifetime income of
,976.40 per month. The folks in Washington have pulled off a bigger Ponzi scheme than Bernie Madoff ever had.
Entitlement my ass, I paid cash for my social security insurance!!!! Just because they borrowed the money, doesn’t make my benefits some kind of charity or handout!! Congressional benefits, aka. free health care, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days, now that’s welfare, and they have the nerve to call my retirement entitlements !!!!!!…..
Pamela projects that she can get 0,000 cash per year for 5 years on a real estate investment project. If Pamela wants to earn a rate of return of 10%, what is the maximum that she should pay for the investment? (rounded to the nearest dollar)
Choose one answer.
a. ,092
b. 0,461
c. 9,079
d. 0,000
Fred has 0,000 to invest in a 5 year annuity. Assuming the time value of money is 10%, what yearly amount will Fred receive in cash each year? (rounded to the nearest dollar)
Choose one answer.
a. 0,000
b. 0,000
c. 1,899
d. none of the above
Mountain Brook Company is considering two investment opportunities whose cash flows are provided below:
Year Investment Choice 1
0 (15000)
1 5000
2 5000
3 5000
4 4000
Investment Choice 2
(9000)
5000
4000
3000
1000
The company’s hurdle rate is 12%. What is the present value index of Investment A?
Choose one answer.
a. 1.01
b. 1.00
c. 0.97
d. None of the above
Henderson Company has two investment opportunities. Both investments cost ,000 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below:
Period Investment Choice 1 Investment Choice 2
1 1000 1000
2 1000 2000
3 2000 3000
4 4000 2000
Total 8000 8000
The net present value of Investment II assuming a 10% minimum rate of return would be which of the following amounts? (round to nearest whole dollar)
Choose one answer.
a. ,182
b. ,415
c. ,182
d. (,415)