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- suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest per year, componded continously, part a: determined the accumuluated savings in this account at teh end of 25 yrs. part b: in part a,suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25. The annuity will extend from teh EOY 26 to EOY 33, what is the value of this annuity if teh interest rate and componding frquency in part a do not change3. RM250 is deposited every 2 months into an account for 10 years. Calculate the accumulated amount if the interest rate is 5.2% compounded quarterly. No use excel. Hence, find the interest obtained.3. Convert 16% compounded monthly is equal to an effective interest rate. 4. Find the accumulated amount of ₱ 1000 after 5 years when deposited in a bank at rate of 16% compounded monthly
- Consider the cash flows given above. What is the equivalent annual payment for 5-year annuity at 5% interest? Year Cash Flow 1 $400 4 $600 2. 3. 5.The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Find how much money will be in the account after the given number of years (Assume 360 days in a year.), and how much interest was earned. A = PntP = A = PertY = n - 1Principal: $6500Rate: 7%Compounded: quarterlyTime: 4 years1. What is the present worth of two P250 payments at the end of the fourth year and sixth year? The annual interest rate is 9%. Solve using a) Simple Interest and b) Compound Interest.
- 1. A lump sum of $30,000 is invested at 6% compounded monthly for 15 years. For 15 years it then pays out a payment at the end of every month while earning 5.4% compounded monthly. What is the payment amount of the annuity? Follow the steps below. a. Draw a timeline HERE. b. Identify the following values: CY = PY = N (number of compounds) = N (number of payments) = i for accumulation phase = i for annuity payment phase = c. Calculate the accumulation value of PV d. Then, using the value at 15 years you can solve for the annuity payment amount (this is the answer to the question).Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R = $4000, 7% interest compounded annually for 5 What is the future value of the ordinary annuity? $ (Round to the nearest cent.) yearsIf you deposit RM25,000 in an account earning an interest of 15% per annum, how much would you have in the account after 10 years? А. RM 92,890 В. RM 125,789 C. RM 168,980 D. RM 101,140
- Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R = $9000, 5% interest compounded annually for 15 years What is the future value of the ordinary annuity? $ (Round to the nearest cent.)Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of 4%, compounded quarterly a. find the total number of periods b. find the real interest rate per period c. find the present value (give the formula)a) What would be the accumulated value of ₺ 100.000 in a saving account at 8% per year for 5 years when the interest is compounded? b) What would be the accumulated value of the same amount after 9 years with the same rate but not compounded (simple interest) annually?