1) $6000 at 4% compounded semiannually for 12 years Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.

Q: Find the present value of the ordinary annuity: Payments of $450 made annually for 13 years at 6%…

A: Option d: This option is correct. Step 1:We have to calculate the present value of the ordinary…

Q: A 3-year annuity immediate with monthly payments has an initial payment of 200. Subsequent monthly…

A: A series of regular periodic payments made at each interval is recognized as an annuity. The…

Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: A sum of money is worth more now than it will be at a later time due to its potential for profits in…

Q: Identify the following types of Annuity from the options ( A to D) given below : Payments of $ at…

A: An annuity is a series of equal payments and receipts lasting for some specific period. The annuity…

Q: Present value of an annuity Determine the present value of $190,000 to be received at the end of…

A: NPV (Net Present Value) is a financial metric used to evaluate the profitability of an investment by…

Q: (a) Present value of Annuity A (b) X if present value of Annuity A is equal to present value of…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: Find the present value for the following future amount. $9890 at 2.5% compounded semiannually for 11…

A: The problem is asking us to find the present value of a future amount. The future amount is $9890,…

Q: The future value of $7,000 deposited today and compounded semiannually at an 9% annual interest rate…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Future Value $28,000 Periodic Payment Payment Interval Term Conversion Period $220 1 month 8 years…

A: The annual rate of interest refers to the interest rate thang charged by the lender from the…

Q: Find the final amount or value of a $ 2,500 annuity that will be paid monthly for two years at 12%…

A: The given problem can be solved using FV function in excel. FV function computes amount in future…

Q: Regular contributions of $200 are made at the end of each month for five years into a savings…

A: An ordinary annuity involves regular contributions or payments made at the end of each period (in…

Q: Find the present value of an ordinary annuity with deposits of $8,989 every 6 months for 6 years at…

A: Formula : Present value of  an annuity = P x [ 1 - ( 1 + r ) ^ - n ] / r where : P = periodic…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: Time taken can be calculated using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: What is the period of deferral in the deferred annuity?

A: Deferred annuity refers to the annuity payments beginning in the future agreed date i.e. after an…

Q: 9 year promissory nate for 6277 dated today bearing interest at 3% compounded quarterly is…

A: Promissory note have interest rate that will be paid on the maturity of note and than these are…

Q: Calculate the net single premium for a 5 year deferred temporary annuity which pays €2,000 each…

A: The net single premium for the insurance is the expected present value of all the future cash flows.…

Q: If vou deposit $5060 al 6 5% compounded semiannually, what will the total amount after 16 years?

A: The present when compounded at a given interest rate for a given period of time gives the future…

Q: Determine the nominal annual rate of interest of the following ordinary general annuity. Conversion…

A: ParticularsValuePresent value 4600Periodic payment787.91Payment interval1yearTerm9yearsConversion…

Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Future value refers to the future worth of a present sum whereas the future value of an annuity is…

Q: At an annual effective interest rate of i, the following two payment streams have equal present…

A: Present value refers to the current value of a future sum of money or cash flow, discounted at a…

Q: 11. In the following ordinary annuity, the interest is compounded with each payment, and the payment…

A: 11. where : FV = Accumulated Amount of the annuity PMT =Payment per period =  $5500 i = interest…

Q: Find the compound amount for the deposit and the amount of interest earned. $8900 at 8.7% compounded…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: Complete the ordinary annuity. (Do not round intermediate calculations. Round your final answer to…

A: We need to use future value of ordinary annuity formula given below to calculate value of ordinary…

Q: 26. Determine the future value of the annuity due: Periodic Payment

A: An annuity is a financial arrangement in which a series of equal payments or cash flows are made at…

Q: What sum deposited today at 5% compounded annually for 13 years will provide the same amount as…

A: A series of payment made at the end of each period with equal intervals of time is an ordinary…

Q: Determine the discounted value of an ordinary annuity deferred 9 years paying $2381 semi-annually…

A: Deferred annuity is a concept of time value of moeny in which the payments starts after a short…

Q: The first payment of the perpetuity is K and each subsequent payment is 0.5% larger than the…

A: We first need to compute the PV of the remaining payments (9 payments) using the PV of ordinary…

Q: Ques 17 and 18

A: Lisa's annual deposit must be approximately $245.50.Explanation:Step 1: Understand the ProblemFuture…

Q: Find the compound amount for the deposit and the amount of interest earned. $6700 at 3% compounded…

A: The amount that you invest today gets compounded. This happens because compound interest is computed…

Q: Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round to the…

A: Ordinary annuity is the type of account in which amount is accumulated at the end of each period for…

Q: a b C סו d e Find the future value of ordinary annuity of the following items: Payment Period…

A: To Find: Sinking fund payment

Q: A perpetuity pays $9600 per half-year, as follows: • in odd-numbered half-year, a payment of $9600…

A: Perpetuity is a security that pays for a limitless measure of time. In money, interminability is a…

Q: Annuity I and annuity II both provide payments at the end of each two-year period for twenty years.…

A: Annuity I Annuity II Time Period 20 20 Interest Rate 2% 2% Every 2nd Year Payment  $1,000.00…

Q: You Find the present value of the following annuity: An amount of $15,806 is paid quarterly for 3…

A: The provided information are: PMT = $15806 NPER = 3 Rate = 6.80%

Q: 11. For each annuity, calculate the future value and the interest earned. Rate of Compound Regular…

A: Part (a)  Given information, Annual payment (PMT) = $2,500Annual interest rate (r) = 7.6% or…

Q: A perpetuity-due with annual payments consists of en level payments of X followed by a series of…

A: A perpetuity is a type of annuity. Now a perpetuity due is that perpetuity in which payment starts…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.