Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposit occurring at t = 8. The effective annual interest rate is 7%. Calculate the present value of the series of payments.
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Classify the financial problem. Assume a 9% interest rate compounded annually. Deposit $200 at the end of each year. What is the total in the account in 10 years? A. sinking fundB.present value C.amortizationD. ordinary annuityE. future value Answer the question. (Round your answer to the nearest cent.)Determine the present value of an ordinary annuity paid annually for 25 years if payments are 1.200$ per year for the first 7 years, 5.500$ for the following 8 years and 2.500$ in the final 10 years. Interest is j12 = 6% throughout the entire period.
- An investment of x dollar is made at the end of each year for three years, at an interest rate of 9% per year compounded annually. What will the dollar value of the total investment be upon the deposit of the third payment? A. 3.278x B. 1.295x C. 0.727x D. 2.059xi. 100 is deposited into an account at the beginning of every 4-year period for 40 years.The account credits interest at an annual effective rate of i.The accumulated value in the account at the end of 40 years is X, which is 5 times the accumulated value at the end of 20 years.Calculate Xii. An investment requires an initial payment of 10,000 cedis and annual payment of 1000cedis at the beginning of each year for ten years. Starting at the end of the eleventh year, the investment returns five equal payment of X.Determine the value of X to yield an annual effective rate of interest at 10% over the 15-year period.(B) i. The present value of a series of $5 at the beginning of the investment periodAn annual deposit of P1,500.00 is placed on a fund at the end of each year for 6 years. If the fund invested has a rate of interest of 5% compounded annually, how much is the worth of this fund at the end of 9 years? O a. P11,118.10 O b. P11,821.10 O c. P11,181.10 O d. P11,811.10
- Annuity A has 20 years annual payments as follows:- i) ii) iii) Annuity i) ii) iii) The first payment is 1000 made at the end of the first year. The subsequent payments increase by 3% from the previous years. The effective interest rate is 5% per annum. B has 20 years annual payments as follows:- The first payment is X made at the end of the first year. The subsequent payments increase by X from the previous years. The effective interest rate is 6% per annum. Annuity C is an annuity immediate of 20-year annual level payments with effective interest rate of 7% per annum. Evaluate, (a) Present value of Annuity A (b) X if present value of Annuity A is equal to present value of Annuity B. stelua. [3 marks] (c) Level payment of Annuity C if present value of Annuity C is TWICE the present value of Annuity A. (d) Sum of future value of these annuities at the end of 20 years. 13 marks] Preval 13 marksA LOAN OF P100,000 MUST BE REPAID BY A UNIFORM AMOUNT EVERY YEAR FOR 10 YEARS AT 10% INTEREST PER YEAR. DETERMINE THE AMOUNT OF PERIODIC PAYMENTS AND CONSTRUCT THE AMORTIZATION SCHEDULE PERIOD PRINCIPAL AT INTEREST PER PERIODIC PAYMENTS TO PRINCIPAL OF THE PERIOD PAYMENTS THE PRINCIPAL THE END OF BEGINNING OF EACH PERIOD EACH PERIOD ТОTALFind the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposit. M= $200 N=annually R=9% T=20 Answer choices: A.) 10,232.02 B.) 133,577.37 C.)11,258.31 D.)11,610.43 E.)9,664.34
- Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. 7) $8000; quarterly payments for 8 years; interest rate 4.1%.An annuity provides for 30 annual payments. The first payment of $100 is made immediately and the remaining payments increase by 8% per year. Interest is calculated at 13.4% per year. Calculate the present value of the annuity. Possible Answers A $1,423 B $1,590 C $1,614 D $1,866 E $1,944An annuity is set up that will pay $1,500 per year for nine years. What is the present value (PV) of this annuity given that the discount rate is 9%? A. $8,993 B. $10,792 C. $5,396 D. $12,590
