Assignment 2: LASA 1—The Season Esteem of Money
By the due season assigned surrender a 4-5 page repute fixed on the forthcoming problem:
Mary has been instituted for a university for approximately 25 years and is now approaching departure. She wants to harangue diverse financial consequences precedently her departure and has asked you to acceleration her direct the situations underneath. Her assignment to you is to afford a 4-5 page repute, harangueing each of the forthcoming consequences individually. You are to pretext all your calculations and afford a constructive exlie for each consequence.
For the definite 19 years, Mary has been easeing $500 in her savings totality , which has gained 5% per year, compounded per-annum and is expected to endure paying that total. Mary conciliate effect one balance $500 ease one year from today. If Mary closes the totality straight succeeding she effects the definite ease, how considerable conciliate this totality be price at that season?
Mary has been instituted at the university for 25 years, succeeding a while an excusable proceedings of advantage. As a consequence, the consultation wants to recompense her succeeding a while a premium to her departure package. They are subscription her $75,000 a year for 20 years, begining one year from her departure season and each year for 19 years succeeding that season. Mary would advance a one-season reimbursement the day succeeding she retires. What would this total be if the expend curiosity-behalf blame is 7%?
Mary’s revival is unexpectedly hired detached by another develop, and Mary is asked to cling in her lie for another three years. The consultation assumes the premium should cling the selfsame, but Mary knows the exhibit esteem of her premium conciliate diversify. What would be the exhibit esteem of her exuberant annuity?
Mary wants to acceleration pay for her granddaughter Beth’s adjust. She has unwavering to pay for half of the disciplineing costs at State University, which are now $11,000 per year. Schooling is expected to acception at a blame of 7% per year into the foreseeable advenient. Beth adjustly had her 12th birthday. Beth plans to begin propaganda on her 18th birthday and conclude in indelicate years. Mary conciliate effect a ease today and endure making eases each year until Beth begins propaganda. The totality conciliate gain 4% curiosity-behalf, compounded per-annum. How considerable must Mary’s eases be each year in adjust to pay half of Beth’s disciplineing at the prelude of each develop each year?
Turn in your completed operation to the Submissions Area through the end of the module.
Assignment 2 Grading Criteria
Calculated the compounded curiosity-behalf balance 20 years and evaluated the esteem of the savings totality upon closing. (CO 1) 32
Calculated the premium payout balance 20 years vs. a one season payout succeeding a while curiosity-behalf and illustrious which premium discretion would be reform for the client. (CO 1) 32
Calculated the exhibit esteem of the premium and analyzed the dissimilitude in premium for the client. (CO 2) 32
Analyzed the disciplineing costs for the client and stable what the advenient costs conciliate be and stable how these funds can be accumulated balance season. (CO 4) 60
Written Components: Organization, habit and mechanics, APA elements, phraseology 44