Calculate the future value of an ordinary annuity that pays $2,350 at 6% for 6 years. Also determine the future value if this were a prepayment annuity.
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A: Let annual Payment = P Interest Rate =r Time Period(n) = 5
Q: Assume that you make monthly payments of $625 into an ordinary annuity paying 4% compounded monthly.…
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A: The formula to compute present value of annuity as follows:
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A: Given that: Monthly payment = $100 Interest rate = 4.25% Time period = 2 years
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A: The question can be solved as follows:
Q: Find the present value of an ordinary annuity which has payments of $2000 per year for 16 years at…
A: Annual payment (C) = $2000 Period (n) = 16 years Interest rate (r) = 0.05 or 5% Present value = ?…
Q: what is the present value of the perpetuity?
A: Present Value: It represents the present worth of the perpetual/constants cash flows. It is…
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A: Present Value of annuity is that value which was invested by investor today after that investor will…
Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…
A:
Q: If you want to be paid from a 14 year ordinary annuity with a guaranteed rate of 2.208% compounded…
A: In finance, the term annuity represents a sequence of cash flows that contain a fixed payment at…
Q: Calculate the present value of a four-period annuity of $200 per year that begins two years from…
A: Present value is calculated by discounting all the future cashflows
Q: If the present value of an ordinary. 7-year annuity is $6,500 and interest rates are 75 percent,…
A: The present value of annuity due is simply calculated as the present value of ordinary annuity…
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A: The future value can be resulted on two bases: Regular annuity series payment or lump sum payment.…
Q: Calculate the present value of a 30-year annuity with annual payments which pays an initial payment…
A: Computation:
Q: Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)
A: Ordinary Annuity: When the annuity payments are paid at the end of the period, such annuity payments…
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A: Using excel PV function
Q: Use PVOA Table to find the present value of an ordinary annuity with an annual payout of P5,000 for…
A: Following is the answer to the question
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A: Time value of money is the concept widely used by the management to determine the worth of money…
Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…
A: Required :The discounted value of these cash flows.
Q: Find the future value of the following ordinary annuity. Payments are made and interest is…
A: Future value of an ordinary annuity The value of the sum of future cash flows is called the future…
Q: Assume that you make quarterly payments of $ 400 into an annuity paying 6% interest compounded…
A: Future value of annuity formula is: Future value of annuity is calculated in excel with function…
Q: Find the future value of an ordinary annuity of $5,000 semiannually for seven years at 6% annual…
A: The question gives the following information:
Q: Find the future value of an annuity due with payments of $380 each year for 8 years at 6%,…
A: future value of an annuity due is the equal payment made at the beginning of each period that will…
Q: Assume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded…
A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…
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A: The payment which is made at the end of 6 months is known as semi-annual payment. By multiplying…
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A: Perpetuity refers to equalized stream of payments that are either paid or received for indefinite…
Q: Assume that you make monthly payments of $ 675 into an ordinary annuity paying 6% compounded…
A: The amount after 12 years can be calculated as future value of annuity
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A: Annuity means a set of a finite number of payments that are made in equal time intervals and the…
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A: The discounted value is present value of future cash receipts
Q: Calculate the future value of an ordinary annuity consisting of monthly payments of $450 for five…
A: An ordinary annuity is an annuity where the periodic payment occurs at the end of the period.
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A: Time Period = 13 Years Monthly Payment made at beginning = $305 Payment started in 5 years…
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A: Here we will use the concept of time value of money. The concept of time value of money states that…
Q: Assume that you make monthly payments of $625 into an ordinary annuity paying 4% compounded monthly.…
A: Using excel FV function
Q: Find the future value of an annuity due with payments of $340 each year for 4 years at 7%,…
A: Annuity Annuity Due is were equal periodic payment or receipts is made at same interval at…
Q: What's the future value of a 7 percent, 5-year ordinary annuity that pays $300 each year?
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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A: Excel Spreadsheet:
Q: You expect to make equal payments of $ 9020.00 at the end of each of the next 6 years (ordinary…
A: Future value of ordinary annuity = Annual payment x [(1 + i)n - 1]/i
Q: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4% interest for 10…
A: There are various payment methods uses by an individual in terms of making payment to its investment…
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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 annuityFind 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.)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 the following ordinary annuity. Payments are made and interest is compounded as given. R = $1,000, 5% interest compounded monthly for 6 years What is the future value of the ordinary annuity? (Round to the nearest dollar as needed.)Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if interest is earned at a rate of 5%, compounded annual. What is the future value?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 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 present value of a 5-year annuity due if the annual payments are $600 and the interest rate is 11%. What is the difference between the present value of the annuity and the present value of the ordinary 5-year annuity?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=14,000; 4.6% interest compounded quarterly for 10 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.)
- You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective interest rate i = .04. The annuity pays $500 at the end of each year and an additional $X at the beginning of years 6 through 12. Find X.Find the future value of the following ordinary annuity. Payments are made and interest is compounded as given. R = $500, 7% interest compounded quarterly for 8 years What is the future value of the ordinary annuity? $ (Round to the nearest dollar as needed.)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%?