A certain annuity pays 80.00 at the end of every 3 months. If the present value of the annuity is 1,200.00 and the accumulated amount is 2,000.00, determine the nominal rate?
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A certain
please do not use excel to solve. show the formulas.
hint in the book: answer is between 10% to 12%
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- What is the present value of a 6-year annuity of $2,250 per period in which payments come at the beginning of each period? The interest rate is 10 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table value. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Present valueFind the present value of an annuity immediate that has an initial payment of 450 with payments increasing by 75 for each subsequent period. The annuity provides 30 monthly payments and the interest rate is a nominal 8% compounded monthly. please do not use excel or a financial calculator to answer please answer using formulas and show all work etcYou wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is 2.5%. How much will you have to invest? (Hint: Looking for present value) Entering your answer: . No dollar signs. . Round to the nearest cent (2 decimal places) . Use commas as appropriate. Only enter the numerical value, no variables, no equal signs
- We can now use the following formula to find the present value of the account where the annuity payments are $400 each month. present value = table factor ✕ annuity payment The table factor was determined to be 21.67568. Before using the above formula, we must add 1 to the table factor since this is an annuity due. Thus, the table factor to use in the formula is 21.67568 + 1 = . Substitute the values into the formula, rounding the result to the nearest cent. present value = table factor ✕ annuity payment = ✕ 400 = $ Therefore, to receive annuity payments of $400 at the beginning of each month for 2 years, the amount that should be deposited now into an account earning 6% interest compounded monthly, to the nearest cent, is $ .Appendix D Present value of an annuity of $1, PV PV-A (1+ Percent Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 1. 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 6. 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4,486 4.355 4.231 4.111 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 ........ 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492…For 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. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) 1. $ 2 3 4. 15 Present Value Answer is complete but not entirely correct. Annuity Amount 2.200 145,000 190,000 72.523 45,787 8,784 558,865 480,945 520,000 240,000 8% 1.0% 9% 2.5% 10% n= 5 4 30 8 4
- Use graphical approximation techniques or an equation solver to approximate the desired interest rate. A person makes annual payments of $1000 into an ordinary annuity. At the end of 5 years, the amount in the annuity is $ l5764.52. What annual nominal compounding rate has this annuity earned? Type the interest rate % (round to 2 decimal places)EQuestion Help Use graphical approximation techniques or an equation solver to approximate the desired interest rate. A person makes annual payments of $1000 into an ordinary annuity. At the end of 5 years, the amount in the annuity is $5898.27. What annual nominal compounding rate has this annuity eamed? Type the interest rate: % (Round to 2 decimal places.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer MacBook Air esc 80 888 DII F4 %23 $ & 2 3 4 6 8 9 Q E R Y A D G H K V B N MWhat is the present value of a 3-year annuity of $120 if the discount rate is 7%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
- Give typing answer with explanation and conclusion to all parts If $387674 is used to purchase an annuity earning 5.5% compounded monthly and paying $3102 at the end of each month, what will be the term of the annuity? Include the final, smaller annuity payment in the total. (Just state total months as a number, not years and months) What is N? What is I/Y? What is C/Y? What is P/Y? What is PV? What is PMT? What is FV?Use a calculator to evaluate an ordinary annuity formula. For m, r, and t (respectively). Assume monthly payments. (Round your answer to the nearest cent). $100; 4%; 12 years.What is the present value of a 3-year annuity of $180 if the discount rate is 7%? . What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)