27. An annuity has payments of 100 at the beginning of every 2 years for 20 years. Determine the accumulated value of the annuity one year after the final payment using an annual effective interest rate of 6%. (A) 1395 (B) 1785 (C) 1895 (D) 2005 (E) 2125
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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?How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.482. An annuity pays 200 at the end of each month for 10 years. Using an annual effective interest rate of 10%, express the present value of the annuity in terms of a1010.1 (12)
- 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) 28.31An annuity makes semi-annual payments for 10 years. The first year the payments are 100 and each subsequent year the payments are 2% higher than the previous year. The annual effective interest rate is 6%. Calculate the present value of the annuity. Answer choices (a)$1240 (b)$1235 (c)$1265 (d)$1280 (e)$1287Find the present value of the ordinary annuity: Payments of $450 made annually for 13 years at 6% compounded annually. a. $ 4182.75 b. $ 3772.71 c. $3982.28 d. $ 3983.71
- A 30-year annuity is arranged to pay off a loan taken out today at a 5% annual effective interest rate. The first payment of the annuity is due in ten years in the amount of 1,000. The subsequent payments increase by 500 each year. Calculate the amount of the loan. (A) 58,283 (B) 61,197 (C) 64,021 (D) 64,257 (E) 69,21117. Determine the periodic payment for the following deferred annuity. The annuity is an ordinary annuity following the period of deferral. Interest rate Compounding Term Present value (%) frequency (years) (S) Quarterly Deferral Payment period interval (months) 1 27 months 6.4 20 50,000.00An annuity pays $12 per year for 47 years. What is the future value (FV) of this annuity at the end of that 47 years given that the discount rate is 7%? A. $3,950.69 B. $2,370.41 C. $5,530.97 D. $4,740.83
- What is the present value of an annuity of 19 annual payments where the first payment is in twelve years and each payment is P1,200 P1589.92 P1859.92 P1958.29 P1895.2943. Calculating Present Value of a Perpetuity Given a discount rate of 6.3 percent per year, what is the value at Year 7 of a perpetual stream of $2,350 annual payments that begins at Year 15?A 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