n the information given int he following case, determine the number of years that the given oridinay annuity cash flows must continue inorder to provide the rate of return on the intial amount. Initial amount: $26,800 Annual Cash Flow: $6,561 Rate of Return: 6%
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: Formula for calculating the annuity payment required: Annuity = Future Value / future value annuity…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: Monthly deposit can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv], [type])…
Q: Calculate the future value at the end of the third period of an ordinary annuity consisting of three…
A: Future value of an annuity: It refers to an amount received or paid equally for a specified number…
Q: What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the…
A: The future value of a single payment is only referred to as simple future value. An annuity requires…
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…
Q: Determine the present worth of a perpetuity of P 12, 000 payable monthly with interest rate of 8%…
A: Monthly interest (M) = P 12000 Interest rate = 8% compounded continuously
Q: Below the figure indicate the following amount: A. Cash Price B. Installment Scheme (Show the…
A: Required: A: Cash Price B: Installment Scheme i) Amount of down payment ii) Amount of monthly…
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Consider the three 20-year annuities described below: (1) level payments of £1,000 payable annually…
A: Payments of £1,000 payable annually in arrears Increasing payment of 1000 made annually in arrears…
Q: Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2, (2) an ordinary annuity of…
A: Cash Flow: Cash flow refers to the amount of cash or cash equivalents that a firm earns or spends as…
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: The PMT is the equal pay that has to paid or received monthly or yearly.
Q: $11,000 is to be paid at the end of each year in a legal settlement. The payments end after 9 years.…
A:
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: Time taken can be calculated using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The…
Q: The present worth of several cash payments may be defined as the sum of the values of the future…
A: The present worth is computed using the Present Value formula.
Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…
A:
Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
Q: Directions: Solve the following problems completely. Find the period of deferral in each of the…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: In this we need to find out monthly payment required for sinking fund.
Q: Calculate the present value of an annuity stream of five annual cash flows of RM1,200, with the…
A: In the given question we need to compute the present value of annuity from following details :…
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: If money is worth 1.07%, determine the present value of perpetuity of P 4.489 pavable annually, with…
A: Inputs Interest Rate = 1.07% Perpetual Amount = 4489 Payments will start at end of 5 years
Q: For each of the following situations involving annuities, solve for the unknown. Assume that…
A: Present Value: The present value (PV) of a future amount of money or stream of cash flows is the…
Q: Find the future value of the following annuity due. Then determine how much of this value is from…
A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…
Q: Classify the financial problem. Assume a 9% interest rate compounded annually. Deposit $200 at the…
A: Solution:- When an equal amount is deposited each year, it is called annuity. The accumulated value…
Q: Consider the cash flows given above. What is the equivalent annual payment for 5-year annuity at 5%…
A: Annuity payment can be calculated by equating the present value of annuity with the present value of…
Q: Present Value of an Annuity Determine the present value of $240,000 to be received at the end of…
A: a) Compute the present value using the present value table: Year Amount received Present value…
Q: Present Value of an Annuity Determine the present value of $340,000 to be received at the end of…
A: Present value of an annuity An Annuity is a stream of regular periodic payments made or received for…
Q: Calculating Annuity Cash Flows For each of the following annuities, calculate the annuity payment.…
A: Annuity cash flows is a cash flow which leads to a same increase or decrease in the cash flows of a…
Q: the periodic paymer necessary tő accumu the given amount in an annuity account. (Assume…
A: We use PMT function in excel to calculate monthly payments
Q: Find the periodic payments PMT necessary to accomulate the given account in an annuity account.…
A: The annuity in which fixed amounts are paid at the end of each period is known as an ordinary…
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: A study that proves that the 1value of money today is higher than the future value of money is term…
Q: Find the amount that should be invested now to accumulate the following amount, if the money is…
A:
Q: Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1.…
A: Future Value = Annuity Payments × [(1+r)n -1/ r]
Q: Fint the periodc payments PNT necessary to accumutate the given amount in an annity account. (Assume…
A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…
Q: Present Value of an Annuity Determine the present value of $200,000 to be received at the end of…
A: The present value is the worth of cash flows at the present time computed on the basis of a given…
Q: . Annuities Find the 10-year future value of anordinary annuity with a contribution of $300…
A: Introduction: Future value of an annuity can be defined as calculating the value of series of…
Q: For each of the following cases, calculate the present value of the annuity, assuming the annuity…
A: Annuity is an cashflow which is transferred between sender and recipient as a series of payments
Q: Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,…
A: The future value is computed by multiplying the present money by the future value annuity factor. In…
Q: Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of…
A: Annual Payments = 120,000 N = 6 Beginning of period payments Annual Compounding Interest Rate = 15%…
Q: Present Value of an Annuity Determine the present value of $120,000 to be received at the end of…
A: ANSWER A) COMPUTATION OF PRESENT VALUE IN EACH 4 YEAR First year $ 114286 Second year $ 108844…
Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…
A: Net present value is defined as the discounted cash flow technique which applies to weight the items…
In the information given int he following case, determine the number of years that the given oridinay
Initial amount: $26,800
Annual Cash Flow: $6,561
Rate of Return: 6%
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial amount $112,100 Annual cash flow $25,622 Rate of return C 5% The number of investment years, n, is years. (Round to two decimal places.)Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount Initial amount $185,500 Annual cash flow $71,963 Rate of return 14% The number of investment years, n, is enter your response here years.Consider each of the following deposit cash flow series. What will the final balance be (future equivalent value) after the final deposit? Assume the account earns 9% interest compounded annually *Use excel*
- ✓ Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial amount $170,100 Annual cash flow $20,473 GCXX Rate of return 5% The number of investment years, n, isyears. (Round to two decimal places.) st artFor each of the following situations involving annuities, solve for the unknown Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (=interest rate, and n number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. EVA of $1. PVA of $1, EVAD of $1 and PVAD of $1) 1 2 3. 4. 5 Present Value 368,041 714,457 600,000 200,000 Annuity Amount $ 4,000 105,000 110.000 96,048 8% 10% 10% n= 5 4 9 43. To find the present value of a sum of sh. 10,000 to be received at the end of each year for the next 5 years at 10% rate, we use: A. Present value of a single cash flow table B. Present value of annuity table. C. Future value of a single cash flow table D. Future value of annuity table
- Determine the value of W on the right-hand side of the accompanying diagram that makes the two cash-flow diagrams equivalent when /=9% per year. Q $1,150 30 1 2 End of Year $1,150 3 4 5 $1,150 W Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. End of Year The equivalent amount, "W", of the cashflows provided in the diagram is $ 1739. (Round to the nearest dollar.) W OUConsider each of the following deposit cash flow series. What will the final balance be (e.g., future equivalent value) after the final deposit? Assume the account earns 10% interest compounded annually. a) b) Year Cash Flow/$ Year Cash Flow/$ 0 25 0 35 1 50 1 60 2 75 2 75 3 100 3 110 4 125 4 135 5 150 5 160What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the type. A. ordinary annuityB. present value C. amortizationD. sinking fundE. future value (b) Answer the question. (Round your answer to the nearest cent.)
- K Calculate the present value of the following future cash flows, rounding all calculations to the nearest dollar (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of $1 table) $12,000 received in five years with interest of 7% $12,000 received in each of the following five years with interest of 7% Payments of $7,000, $8,000, and $5,500 received in years 3, 4 and 5, respectively, with interest of 9% 11. 12. 13. 11. Calculate the present value of $12,000 received in five years with interest of 7% (Enter any factor amounts to three decimal places, X.XXX.) Present value X X Year 3 Year 4 Year 5 Total 12. Calculate the present value of $12,000 received in each of the following five years with interest of 7% (Enter any factor amounts to three decimal places, X.XXX.) Present value of an annuity X 13. Calculate the present value for payments of $7,000, $8,000, and $5,500 received in years 3, 4 and 5, respectively, with interest of 9%…Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Annuity Payment Annual Rate Interest Compounded Period Invested Present Value of Annuity 1. $5,200 7.0 % Annually 5 years 2. 10,200 10.0 % Semiannually 3 years $4,264.21 3. 4,200 12.0 % Quarterly 2 years1. For each of the following cases, calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate specified over the given period. Case Single Cash Flows ($) Interest Rate (%) Deposit Period (years) A $100 3.5% 30 B $5,000 10% 25 C $12,500 12% 7 D $23,200 14% 10