Randall will make deposits of $3,130 at the end of every year into an account earning 3.29% compounded monthly for the next 29 years. What type of annuity is Randall using? O Perpetuity O Not an Annuity O imple Annuity Due O Ordinary Simple Annuity O General Annuity Due O Ordinary General Annuity
Q: Vusa has invested $420000 in an annuity that pays interest at the rate of 3.6% per annum,…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Peter deposits $500 at the end of every month for 3 years in a savings account. The account pays 12%…
A: The formula used is shown:
Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…
A: Annual receipt (C) = P 35,000 Number of annual receipts (n) = 18 Interest rate (r) = 3%
Q: Find the amount of an annuity that consists of 20 quarterly payments of $700 each into an account…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: Ethan deposits $750 at the end of every month for 3 years and 1 months in a retirement fund at 3.86%…
A: The series of cash flows that are equal in amount and complete series is either positive or negative…
Q: A 10-year annuity pays $1,725 per month, and payments are made at the end of each month. The…
A: The current worth of the cash flows or an asset after discounting is termed as the present value.
Q: Bill plans to deposit $1,500 quarterly for 30 years at 5.5% Interest, compounded monthly. How much…
A: Formula for computing the amount Future value of series=PMT×p1+rnnt-1rn where 'p' is the number of…
Q: n annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate…
A: Present value of annuity can calculated by using Excel PV function.
Q: An engineer is entitled to receive P25,000 at the beginning of each year for 18 years. If the rate…
A: Given, Payment is P25, 000 Rate 4% Number of years 18.
Q: Donald Turner invested $4500 twice a year in an annuity due at Capital Appreciation, Inc. for a…
A: Periodic deposit (D) = $4500 n = 7 years = 14 deposits r = 4% per annum = 2% per period
Q: Your aunt promises to gift you $1,500 now, $1,700 one year from now, $1,900 two years from now, and…
A: The future value is reflective of the value of cash flows in the future after compounding them using…
Q: A payment of $500 is made at the end of each month for three years to a savings account. The…
A: Present value method is used to evaluate the different level of investment projects. With the help…
Q: Assume that you make quarterly payments of $ 475 into an annuity paying 3% interest compounded…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the…
A: The present value of annuity refers to the current value of future annuity payments to be paid at a…
Q: If you make monthly deposits of $497.00 into an ordinary annuity earning 3.09% compounded monthly,…
A: An annuity is a series of equivalent periodic cash flows for a specific duration. In the case of an…
Q: To save for retirement, a student invests $50 each month in an ordinary annuity with 6% interest…
A: Monthly Investment(PMT) is $50 Interest rate(i) is 6% Time period is 40 years To Find: Amount…
Q: A 20-year annuity pays $1,950 per month, and payments are made at the end of each month. If the…
A: Present value of the annuity of $1950 at 7% compounded monthly at the end of 10 years would be…
Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…
A: The present value means the present value of the payment of the future. It generally tells us what…
Q: Recently, More Money 4U offered an annuity that pays 5.7%compounded monthly. If$1,402 is deposited…
A: MONTHLY COMPOUNDING RATE (5.7%) 0.4750% PERIOD (11*12) 132 PMT (MONTHLY DEPOSIT) 1402…
Q: An annuity with a cash value of $14,000 earns 5% compounded semi-annually. End-of-period semi-annual…
A: Cash Value = $14,000 Interest Rate = 5% compounded semi annual
Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: Annuity refers to the series of payments at regular intervals over a period of time. Future value of…
Q: Assume that you make quarterly payments of $ 750 into an annuity paying 9% interest compounded…
A: Quarterly payment = $750 Interest rate = 9% Quarterly rate = 0.09/4 = 2.25% Time =10 years Quarterly…
Q: Assume that you make quarterly payments of $650 into an annuity paying 8% interest compounded…
A: In this question we need to calculate the future value from following details: Quarterly payment =…
Q: Assume that you deposited RM5,000 at the end of each year for 3 consecutive years in an account that…
A: Annual deposit = RM 5,000 Number of annual deposit = 3 Interest rate = 10% Semi annual interest rate…
Q: A 25-year annuity was purchased with $225,000 that had accumulated in a RRSP. The annuity provides…
A: DefinitionRRSP: A Registered Retirement Saving Plan is an investment cum retirement saving plan for…
Q: To save for retirement, Karls Harby put $350 each month into an ordinary annuity for 12 years…
A: Monthly Payment = 350 Time Period = 12 Years Future Value = $79,973.00
Q: You own $35000 from the bank for 3 years at 8.50% annual interest, and you will make equal monthly…
A: Solved using Financial Calculator PV = 35,000 N = 3years * 12 = 36 I/Y = 8.5/12 = 0.708333 CPT PMT…
Q: If you have a 13-year annuity paying $209 quarterly beginning in 6 years when interest is 3.13%…
A: First payment takes place in the beginning of 6th year. The payments are made quarterly.
Q: Leanne Simon made ordinary annuity payments of $100.00 per month for 15 years earning 4.5%…
A: The future value of the regular payment made at the end of every period is called the future value…
Q: Ann saves 4,800 as a term deposit today. The interest is paid semi-annually. If her saving grows to…
A: APR is the annual percentage interest rate which is being earned on particular amount of investment.…
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: 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…
Q: A student will receive 3,000 at the beginning of each months for 4 years. What is the sum of this…
A: Annuities are referred to as the contracts that are issued as well as distributed by the financial…
Q: Lin Lowe plans to deposit $1,800 at the end of every 6 months for the next 15 years at 8% interest…
A: Amount Deposit = $1,800 Time Period = 15 Years Interest Rate = 8%
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
Q: A certain annuity pays $108 at the end of every 3 months. If the present value of the annuity is…
A: Annuity means a set of a finite number of payments that are made in equal time intervals and the…
Q: Hank made payments of $205 per month at the end of each month for 30 years to purchase a piece of…
A: Annuity means a series of finite number of payments which are the same in size and made in equal…
Q: If you have a 13-year annuity paying $305 quarterly in 5 years when interest is 3.25% compounded…
A: Time Period = 13 Years Monthly Payment made at beginning = $305 Payment started in 5 years…
Q: A relative wills you an annuity paying $ 1900 per quarter for the next 6 years. If money is worth…
A: Annuity amount= $1900 per quarter Time period (n)= 6 years Interest rate (r)= 10% compounded…
Q: Determine the value of an ordinary annuity if $290 is deposited each month into an account earning…
A: In order to find the future value of an annuity, one can use excel and use FV function to determine…
Q: . Mr. Formento pays at the end of every month for a loan that charges 5% inter ompounded quarterly.…
A: There are many types of annuities depending on the payment at the end or beginning or whether it is…
Q: Ms Smith borrows 5000 at 5% annual effective interest, with payments at end of each year. The lender…
A: A loan amortization table is the schedule of loan repayment which includes the bifurcation of the…
Q: A student will receive P 3,000 at the beginning of each 3 months for 4years. What is the sum of the…
A: Quarterly payment (P) = P 3,000 Period of payment = 4 Years Number of payments (n) = 4*4 = 16 Annual…
Q: If P44,873 is deposited each year for 6 years at an interest rate of 14.225% compounded semi…
A: Here we will use the concept of time value of money. The concept of time value of money states that…
Q: You make deposits of $700 at the end of each month into an account earning i^(12) = .03 for three…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
Q: Robert wants to have $2,300 at the end of every three months for 8 years. The bank pays 8% interest,…
A: Here, To Find: Present value of annuity due =?
Q: Suppose that $500 is deposited at the end of every quarter for 6 years in an account that pays 8%…
A: To calculate the value of the annuity, we can either use excel or fv calculator where R= RATE OF…
Q: A 13-year annuity pays $1,200 per month, and payments are made at the end of each month. The…
A: Present value of annuity is the present value of all the periodic stream of cash flow that occur in…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ethan deposits $750 at the end of every month for 3 years and 1 months in a retirement fund at 3.86% compounded quarterly. a. What type of annuity is this? o Ordinary simple annuity o Ordinary general annuity O Simple annuity due O General annuity due b. How many payments are there in this annuity?Mr. Delima deposited P5,500 every 6 months to an account that earns 8% interest compounded annually. What type of annuity does this problem illustrate?Danielle receives $7,500 at the end of every quarter for 5 years for money that she loaned to a friend at 3.08% compounded quarterly. a. What type of annuity is this? a.Ordinary simple annuity b.Ordinary general annuity c.Simple annuity due d.General annuity due b. How many payments are there in this annuity? Round up to the next payment
- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. You and your new spouse each bring home $1600 each month after taxes and other payroll deductions. By living frugally, you intend to live on just one paycheck and save the other in a mutual fund yielding 7.74% compounded monthly. How long will it take to have enough for a 20% down payment on a $175,000 condo in the city? (Round your answer to two decimal places.)Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.John Regan, an employee at Home Depot, made deposits of $850 at the end of each year for 6 years. Interest is 6% compounded annually. What is the value of John's annuity at the end of 6 years? (Use Table 13.1,) (Do not round intermediate calculations. Round your answer to the nearest cent.) John's annuity acer Σ
- Lidia deposits $700 at the END of each year for 8 years in a savings account. The account pays 12% interest, compounded annually. Lidia calculates that the future value of the ordinary annuity is $8,609.79. What would be the future value if deposits are made at the BEGINNING of each period rather than the END? A. $7,062.31 B. $8,609.79 C. $9,642.96 D. $10,342.96Sam deposits $800 at the end of every 6 months in an account that pays 7%, compounded semiannually. How much will he have at the end of 9 years? (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity annuity due (b) Solve the problem. (Round your answer to the nearest cent.)Peter deposits $500 at the end of every month for 3 years in a savings account. The account pays 12% interest, compounded monthly. Peter calculates that the future value of the ordinary annuity is $21,538.44. What would be the future value if deposits were made at the beginning of each period rather than the end? (Calculate the future value by formula)
- Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $170 deposited monthly for 20 years at 3% per year in an account containing $11,000 at the start Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $90,000 in a fund paying 6% per year, with monthly payments for 5 yearsa) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of the annuity. Show your work in detail.If $417.00 is deposited at the end of each year for 6 years into an ordinary annuity earning 4.08% interest compound semiannually, construct a balance sheet showing the interest earning during each year and the balance at the end of each year. Assume this annuity rounds the interest and balance to the nearest penny at the end of each year.