What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment? Use a nominal rate of 7.23%. $1,039 $946 O $882 O $990 O $873
Q: Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12%…
A: Data given:: A=P1000 i=12%/2 = 6% Period=n= 20 Formula to be used : F=A * ((1+i%)n -1) / i%
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A: We are given following details : Annual cash flow in perpetuity = $2000 Interest rate = 10% We need…
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A: Given: Interest rate = 6% Future value of ordinary annuity = $2000
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A: Future value is the value of an asset which grows to some new value. Annuity due means the payment…
Q: An annuity makes semi-annual payments for 10 years. The first year the payments are 100 and each…
A: Solution- Step (1) Given that Amount of first payment =100 Numbers of year =10 Number of semi-annual…
Q: f money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly…
A: In this we need to find out present value factor and from that we can get the quarterly payment.
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A: The given problem can be solved using FV function in excel. FV function computes amount in future…
Q: Find the present value of an annuity if the first monthly payment ₱6,200 is made at the end of 4…
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: A growing annuity pays $1,000 at the end of the second year (t=2). The payment grows 3% per year…
A: Payment after second year = $1000 Number of payments = 5 Growth rate = 3% Discount rate = 8%
Q: Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest…
A: An Annuity Due is a stream of regular periodic payments made at a beginning of period for a…
Q: What annuity is required over 13 years to equate with a future amount og 30,000? Asssume i= 7%…
A: We need to use future value of ordinary annuity formula given below to calculate annuity. FVA…
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A: An annuity is a type of agreement or a contract between an individual and an insurance company in…
Q: You invest in an ordinary annuity $3,000 annually at 7% annual interest. What is the future value of…
A: Given: Amount = 3000 r = 7% n = 5 years
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A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…
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A: The present value of investment is the sum of present value of annuity and the present value of…
Q: For given information answer the Questions no (3) and (4) for a 10,000 per month annuity that has a…
A: FV=P1+in-1iFV=Future valueP=Periodic paymenti=rate of returnn=number of period
Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…
A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…
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A: The more is compounding the more is the effective interest rate and more is the future value of…
Q: use the appropriate formula to find out how much you should deposit now at 8% interest compounded…
A: The deposit amount can be calculated as the present value of annuity due.
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A: An annuity is a series of regular and equal cash flows at periodic intervals. The Present Value of…
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…
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A: Future value of money grows with interest rate and period of deposit and while present value…
Q: Compute the future amount of the money which has annuity of 888 in 5 years if it is compounded…
A: Monthly payment (P) = 888 Interest rate = 11% Monthly interest rate (r) = 11%/12 =…
Q: You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective…
A: Present value of annuity = $10000 Interest rate (r) = 4% Annuity amount (A) = $500 Additional amount…
Q: If $75,000 is used to purchase an annuity that pays $950 a month, and if the interest rate is 9%…
A: Price of Annuity = 75,000 Monthly Compounding Annuity Payment per month = 950 Interest Rate = 9%/12…
Q: What is the present value of an ordinary annuity of P47,000 each year for eight years assuming a…
A: Solution Concept Ordinary annuity means the annuity which is received at the end of each period…
Q: The future value of an ordinary annuity of $2,000 each year for 10 years, deposited at 12%, is:
A: The future value of ordinary annuity is calculated when the payments are made at end of the year. In…
Q: Engineering Economics (Annuity) An ordinary annuity paying P1,811 at the end of each year for 15…
A: The question is based on the concept of future value calculation for annuity payment. Formula as :…
Q: You are given the following about two annuities-immediate: Annuity A pays 300 at the end of each…
A: Answer. Option D. 13% Working PV of Annuity A = [300 / (1+i)^1]+[300 / (1+i)^2]+[300 /…
Q: Find the future value of an annuity due of $1,500 semiannually for six years at 7% annual interest…
A: FV = PV * [(1 + i)n - 1] / iFV = PV * FVIFA(i,n) where, FV = Future Value of AnnuityPV =…
Q: How many regular payments will be made?
A: Present Value: It is the present worth annuity payments, discounted over a period of time at an…
Q: Lidia deposits $800 at the END of each year for 8 years in a savings account. The account pays 12%…
A: Future value is the value of an asset in the future over the years. It can be calculated as…
Q: An annuity pays $5,000 per month for 5 years at an annual interest rate of 7.5% compounded monthly.…
A: Monthly payment (M) = $5000 Number of payments (n) = 5 years = 60 months r = 7.5% per annum = 0.625%…
Q: A 7-year annuity providing a rate of return of 6.2% compounded monthly was purchased for $97,750.…
A: Annuity payments are a series of regular payments that an investor makes into an investment account…
Q: Annuity Find the amount and present value of an annuity of P5,000 every end of 6 months for 12…
A: Introduction: Annuity refers to the series of payments that are actually made at equal intervals.…
Q: RM 50 is deposited every month for 2 years at 12% compounded monthly. What is the future value of…
A: An annuity is a series of cash flows with a fixed payment over a specific time period. The future…
Q: What is the present value of a $1,000 ordinary annuity that earns 8% annually for an infinite number…
A: Annual payment = $ 1000 Interest rate = 8%
Q: What is the present value of a 30 year annuity with payments of $1,600 per year if interest rates…
A: Computation:
Q: What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year?…
A: End of Year payments =850 Nominal interest rate = 8% Present value of perpetuity=Equal cash flow…
Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 12% annually if…
A: A perpetuity is an annuity that gives out payments but has no maturity period.
Q: What is the present value of a perpetuity with payments starting one year from now. The first…
A: A perpetuity is a type of security that pays a constant stream of fixed cash flows for an infinite…
Q: What is the present value annuity due of RM2,000 with a 10 percent discount rate for 10 years?…
A: using the PV function in excel
Q: How much will be the future value of a 5-year ordinary annuity which has annual payments of $200,…
A: The question gives the following information:
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- What is the present value of an ordinary annuity that pays $1,000 per year for 4 years, assuming the annual discount rate is 7 percent? a. $3,051.58 b. $762.90 c. $3,624.32 d. $3,738.32 e. $3,387.21An annuity pays $54 per year for 28 years. What is the future value (FV) of this annuity at the end of those 28 years, given that the discount rate is 8%? A. $5,148.30 B. $7,207.62 C. $6,177.96 D. $3,088.98How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.48
- What's the present value of a perpetuity that pays $2,200 per year if the appropriate interest rate is $%? O $47,960.00 $49,720.00 O $48,400.00 $44,000.00 $36,520.00 4What's the present value of a perpetuity that pays $260 per year if the appropriate interest rate is 4.9%? Group of answer choices $5,819 $6,094 $5,431 $5,056 $5,306What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year? Use a nominal rate of 8.00%. O $10,625 O $10,952 O $10,241 O $9,133 O $9,004
- An annuity pays $13 per year for 42 years. What is the future value (FV) of this annuity at the end of that 42 years given that the discount rate is 4%? OA. $817.59 B. $1,635.18 OC. $1,362.65 D. $1,907.71 ...What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The appropriate interest rate is 7 percent. Answers: a. $10,000 b. $6,452 c. $20,423.74 d. $4,657 An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? Answers: a. $1,134 b. $5,324 c. $2,345.50 d. $2,569.77 *PLEASE SHOW ALL STEPS! CANNOT USE EXCEL TO SOLVE! CAN USE CALCULATOR FUNCTIONS!!What is the future value of an ordinary annuity with annual payments of $1200 for 20 years at 10% p.a. compounded annually? Select one: a. $68,729.99 b. $48,964.86 c. $68,112.18 d. $68,279.99
- What is the value in the year 2045 of a $200 a year annuity with the first payment in 2025 and the final payment in 2040? The interest rate is 6% p.a. Group of answer choices $5,134.51 $5,442.58 $6,871.13 $2,021.18Present Value of an Annuity Estimate the present value of an annuity if payments are $1300 monthly for 15 years and the account earns interest at the rate of 10%/yr compounded continuously. (Round your answer to two decimal places.) $120687.43 X Need Help? Read ItWhat is the present value of a $1,340 per year annuity for five years at an interest rate of 12 percent? Multiple Choice $ 8,516.08 $4,830.40 $742.52 $3,583.71