Q: Find the present value of a perpetuity that pays $2,000 per year and the interest rate is 10%.
A: We are given following details : Annual cash flow in perpetuity = $2000 Interest rate = 10% We need…
Q: the present value of perpetuity that pays 500,000 per year if the appropriate interest rate is 10%…
A: Present value of perpetuity = Annual amount / interest rate
Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?
A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…
Q: What is the present value of an annuity due that promises $20,000 per year for 20 years if the…
A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…
Q: What is the present worth of a 3 years annuity paying P3,000 at the end of each year, with interest…
A: Annuity is a series of uniform cash flows over a period of time.
Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.
A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…
Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…
A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…
Q: four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how…
A: Present value =10000 interest rate =5% Period =4 years Present value FACTOR =1-(1.05)-4/0.05…
Q: What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a…
A: Future value refers to the amount of current investment after a certain time at a certain rate of…
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: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…
A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…
Q: You have the opportunity to buy a perpetuity that pays $1,000 annually. Your required rate of return…
A: Payments each year = Cash flow = C = $1000 Rate of Interest = r = 13.2% = 0.132
Q: What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is…
A: Perpetuity is a type of annuity which has no maturity. Given data; payment = $ 250 interest rate =…
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…
Q: An annual perpetuity of $10,000 has a present value of $250,000. What is the annual interest rate?
A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…
Q: What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $75 per year?
A: Rate of return is the rate you earn on perpetuity i.e. amount initially paid.
Q: How much money do you need now to set up a perpetuity that pays $2,000 at the end of each quarter if…
A: Perpetuity used to defined as an annuity, which is without any of an end or used to be said that…
Q: What is the present value of perpetuity of $100 per year if the appropriate discount rate is 7…
A: Time value of money-It is based on the concept that money earned today is worth more than similar…
Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?
A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800
Q: What must YOU invest today to receive an annuity of $4,500 for 10 years compounded at 8% quarterly…
A: PV of Annuity =P1-1(1+r)n r Where PV = Present Value r = rate of interest n = Number of Period P =…
Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…
A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…
Q: What is the present value of a four-period annuity of $200 per year that begins two years from today…
A: Annual annuity amount = $200 Time Period = 4 years Discount Rate = 9%
Q: What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?
A: Given: Rate: 7% Annuity =300 Number of years = 5
Q: What is the present value of an annuity that consists of 24 semiannual payments of $8000 at the…
A: Present value is the current value of future cash flow with respect to time value of money.
Q: IF A PERPETUITY IS WORTH P 500,600.00 AND WITH AN INTEREST OF 16.25%, WHAT IS THE ANNUITY? IF MONEY…
A: Since you have asked multiple questions, we will solve the first question for you as per policy.…
Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $1,000 monthly?
A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…
Q: If the present value of an ordinary, 6-year annuity is $9,400 and interest rates are 9.5 percent,…
A: Time value of money is the concept widely used by the management to determine the worth of money…
Q: What's the future value of a 5%, 5 year ordinary annuity that pays $800 each year? If this was an…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present…
A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…
Q: the rate of return
A: solution:- The present value of an annuity paid in perpetuity is PV = PMT/i where i is the rate.…
Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…
A: PMT = 58 Period = 13 years Nominal rate of interest = 7.23% Additional amount = 1000
Q: What is the present value of an ordinary annuity of 2,200 per year for 15 years discounted back to…
A: The present value function or concept can be used to determine the present value of a future sum or…
Q: An annual perpetuity has a constant cash flow of $1000. If the interest rate is 7% compounded…
A: Given, Annual cash flow: $1,000Interest rate: 7%Present value of perpetuity=Annual cash…
Q: What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an…
A:
Q: A perpetuity pays $85 per year and costs $2,780. What is the rate of return?
A: In this question we need to compute rate of return on perpetuity from following details : Payment…
Q: What is the present value of a $700 annuity payment over six years if interest rates are 10 percent?
A: The present value of annuity refers to the current value of a series of future payments. The present…
Q: What is the present value of a 3-year annuity of $200 if the discount rate is 5%?
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: What’s the present valu
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
Q: What is the present value of a perpetuity of $17 per year growing at 2 percent per year with a…
A: Present Value: The present value (PV) is the present sum of a series of fixed payments. The series…
Q: What is the future value of general annuity of P48,000 per annum, for 5 years, at 15% interest…
A: Annual payment (P) = P48,000 Number of annual payments (n) = 5 Years Interest rate (r) = 15% Number…
Q: What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the…
A: The perpetuity is the annuity that happens for a perpetual period. In other words, it is the equal…
Q: What is the present value of an annuity due of 2,000 per year for 15 years discounted back tobthe…
A: In present value of annuity due, payment is due at the beginning of the year. We need to use formula…
Q: What is the present value of a $1,100 payment made every year forever when interest rates are 4.5…
A: In this question we need to compute the present value of $1100 payment made every year for forever…
Q: If the future value of an ordinary, 7-year annuity is $9,900 and interest rates are 9.0 percent,…
A: Given, Future Value = $9,900 Interest Rate = 9.0% Term = 7 years Formula: Future value of annuity…
Q: What is the rate of return you would earn if you paid $3,680 for a perpetuity that pays $85 per…
A: In this question we require to compute the rate of return on a perpetuity.
Q: What is the present value of regular perpetuity paying $1500 per month if the discount rate is 8.4%…
A: Given Information: Monthly perpetual payments = $1500 Annual interest rate = 8.4%
Q: What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year?…
A: End of Year payments =850 Nominal interest rate = 8% Present value of perpetuity=Equal cash flow…
Q: present value of a perpetuity with annual cash flows of $1,000 each year is $15,000. What is the…
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
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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 annuityWhat is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the appropriate interest rate is 5%?What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is 6.5%?
- A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?What's the future value of a 5%, 5 year ordinary annuity that pays $800 each year? If this was an annuity due, what would its future value be?What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an annuity due, what would its future value be?
- A perpetuity will pay $1,000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10 percent? What would be the future value if it were an annuity due?
- What is the present value of a perpetuity that pays $50 annually and has an annual rate of return of 17%? note: round and show your answer to the nearest dollar.What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be? Round your answers to the nearest cent.