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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity(a) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of the annuity. Show your work in detail. (b) If you deposit $140 instead of $135.29 under the same circumstances how much more will your annuity be worth? Show your work in detail.a) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of the annuity. Show your work in detail.
- A perpetuity will pay $1,000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=16,000; 4.3% interest compounded quarterly for 11 years. The future value of the ordinary annuity is $__ (Round to the nearest cent as needed.) The amount from contributions is $__ and the amount from interest is $__. (Round to the nearest cent as needed.)Find the future value of an annuity due with an annual payment of $13,000 for three years at 5% annual interest using the simple interest formula. How much was invested? How much interest was earned? What is the future value of the annuity? (Round to the nearest cent as needed.)
- Find the future value of an annuity due with an annual payment of $9,000 for two years at 7.5% annual interest using the simple interest formula. Find the total amount invested. Find the interest. What is the future value of the annuity? (Round to the nearest cent as needed.)What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.Find the future value of an annuity due with an annual payment of $13,000 for three years at 4% annual interest using the simple interest formula. How much was invested? How much interest was earned?
- A perpetuity will pay $800 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 3%?You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?