The first payment of the perpetuity is K and each subsequent payment is 0.5% larger than the previous payment. Calculate K. A) 1.53 (B) 1.67 (C) 2.37 (D) 3.42 (E) 3.74
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- Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?A perpetuity-due with annual payments consists often level payments of X followed by a series of increasing payments. Beginning with the eleventh payment, each payment is 1.5% larger than the preceding payment. Using an annual effective interest rate of 5%, the present value of the perpetuity is 45,000. Calculate X. B C 1,679 E 1,696 1,737 D 1,763 1,781An annuity contract provides for the payment of P2,200 at the end of every month for 10 years. Money is worth 7% compounded semi-annually. What is the conversion period A.m=1 B.m=2 C.m=4 D.m=6 What is the amount of the annuity at the end of 10 years? A.P3,838,328.45 B.P3,670,994.35 C.P380,786.58 D.P378,698.24
- An annuity-due makes payments of $15 every other year, with the first payment beginning immediately. The annuity-due makes ten payments. The nominal annual interest rate compounded semiannually is 5%. Calculate the present value of the annuity due. a. 100.0958 O b. 93.2775 O c. 66.7310 d. 124.3700 O e. 133.4620Find i (the rate per period) and n (the number of periods) for the following annuity. Semiannual deposits of $1,500 are made for 11 years into an annuity that pays 6.8% compounded semiannually Type an integer or a decimal.)Two annuities have equal present values and an applicable discount rate of 7 percent. One annuity pays RM2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year? Select one: A. RM2,266.67 B. RM2,331.00 C. RM2,675.00 D. RM2,500.00
- A perpetuity of $1 each year, with the first payment due immediately, has a present value of $25 at an annual effective rate of i%. The owner exchanges it for another perpetuity with the first payment due immediately and subsequent payments due at two year intervals. What should the payment of the second perpetuity be, in order to keep the same interest rate, i%, and the same present value? A B с D E Less than $1.90 At least $1.90, but less than $1.94 At least $1.94, but less than $1.98 At least $1.98, but less than $2.02 $2.02 or moreAt an annual effective interest rate of i, i > 0%, the present value of a perpetuity paying 10 at the end of each 3-year period, with the first payment at the end of year 6, is 32. At the same annual effective rate of i, the present value of a perpetuity-immediate paying 1 at the end of each 4-month period is X. Calculate X. a. 40.8 b. 39.8 41.8 d. 42.8 38.8 C. e.A 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments are also 1000, and then subsequent payments increase by 5.06% over their previous payment. Determine the present value of the annuity using an interest rate of 8%, compounded quarterly. A) 58,295 B) 59,570 C) 60,845 D) 62,120 E) 63,395
- 5. A perpetuity-due with annual payments of 100 has a duration of 26.88 years at an annual effective rate of interest i. Calculate the duration of this perpetuity if the annual effective rate of interest is i +1% instead of i. A) 21.19 B) 22.63 C) 24.95 D) 27.93 E) 28.31A 3-year annuity immediate with monthly payments has an initial payment of 200. Subsequent monthly payments are x% more than each preceding payment. Given that the amount of the 14th payment is 481.969, determine the present value of the annuity using a 9%, compounded monthly, interest rate. (A) 23750 (B) 24005 (C) 24255 (D) 24550 (E) 24735A 10-year annuity-due pays 50 quarterly for the first 5 years and 100 quarterly for the last 5 years. The annuity earns at a nominal rate of 6% convertible quarterly. What is the present value of this annuity? A) 1978 B) 2034 C) 2077 D) 2119 E) 2165
