A 12-year annuity pays $2,500 per month, and payments are made at the end of each month. The interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter. What is the present value of the annuity?
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- Question 8.28 The present value of a 5-year annuity is X. The annuity pays 600 at the end of the first month, 590 at the end of the second month, and for each month thereafter the payment decreases by 10. The annual nominal interest rate is 3% compounded monthly. Calculate X. A 16,402.37 B 16,834.05 C 16,845.29 D 17,390.57 E 17,402.37Question 15 The 18,000-dollar present value of a certain annuity carries a payment amount that needs to be made indefinitely at 7.12% interest rate, compounded weekly. How much money should be paid regularly? A $23.18 B $24.65 C) $22.56 D) $20.93QUESTION 12 At any moment t, a continuously-varying 5 year annuity makes payments at the rate of t² per year at moment t. The force of interest is 6%. Find the present value of this annuity. 31.0 O 32.7 33.3 36.0 37.7
- QUESTION 5 At an annual effective interest rate of i, >0, the present value of a perpetuity paying 100 at the end of each 2-year period, with the first payment at the end of year 2, is 400. At the same annual effective rate of i, the present value of a perpetuity paying 11 at the end of each 6-month period, with first payment at the end of 6 months, is X. Calculate X O 178.1 O 191.7 O 193.7 O 200.5 O 201.2Problem 5-9 Calculating Annuity Values (LO 1] Assume you deposit $5,400 at the end of each year into an account paying 10.5 percent interest. a. How much money will you have in the account in 17 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 34 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) а. Future value b. Future valueQuestion 10 of 30 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 OD) 64,257 E) 69,211
- Quetion 5 What's the present value of a $680 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value?Question 4 What's the present value of a $830 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Futre valuePART 1 ORDINARY ANNUITY PROBLEMS A. Find the amount and present value of an annuity of 540 payable every end of the month at 7% compounded monthly for 4 years and 5 months. B. A TV set is offered for sale for 3,800 down payment and 950 every month for the balance of 2 years. If the interest is to be computed 6% compounded monthly, what is the cash price equivalent of the TV set? C. Find the cash value of a washing machine that can be bought for 1,500 down payment and 950 a month for 18 months, if money is worth 6% compounded monthly.
- Problem 1-15 Calculating the Future Value of an Annuity [LO 4) What amount would you have at age 65 if you contributed $260 a month starting today at age 25 and you can earn 6 percent APR compounded monthly on your investment? If you were to delay this savings for 10 years when you're 35, how much would you then have at 65? (Do not round intermediate calculations. Round your final answer to 2 decimal places. Omit the "$" sign in your response.) Annual paynent at the end of 65 years, startine at 25 years Annual payment at the end of 65 years, starting at 35 yearsProblem 6-7 Calculating Annuity Values [LO1] You plan to deposit $5,200 at the end of each of the next 25 years into an account paying 10.3 percent interest. a. How much money will you have in the account in 25 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 50 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) X Answer is not complete. a. Future value of 25 deposits b. Future value of 50 deposits $ 41,956.81 xQuestion 9 Calculate the nominal rate for each of the following general ordinary annuities given the present or future value of the annuity Note. Please make sure your final answer(s) are in percantage form and are accurate to 2 decimal places. For example 34 56% Periodic payments Payment interval Interest Compounding Present or Future frequency Term Rate value Every quarter year 12 years, 6 months 0.00% Every quarter year 12 years, 3 months 0.00% Semi-annually FV = $70,943.40 $800.00 Semi-annually PV = $30,946.62 $900.00 SAVE AND CLOSE