23. A person wins Euro Dreams, a lottery that pays 20.000 € per month for 30 years. If the current annual effective rate is 6%, what is the present value of his winnings? (consider the payments at the end of each period)

Q: Using an annual effective interest rate of 7%, find X

A: To find the value of X, we need to calculate the present value of the cash flows using the given…

Q: The interest rate is 3.6% per annum (p.a.). We want to save 100,000 kroner by making fixed payments…

A: An annuity refers to a payment series that provides periodic amounts in exchange for a lump-sum…

Q: Q4. You plan to save the following amounts: 3,095 today 7, 566 per year for the next 10 years 8,390…

A: Savings amount today = $3095Amount for the next 10 years = $7566Amount next 1 year = $8390Amount for…

Q: 3. Discount P60,000 due in 40 years at 12% compounded quarterly. 4. Find the present value of…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: The buyer of a lot paid P110,000 down payment and agreed to pay P35 000 at the end of each six…

A: The cash price can be found by adding up the downpayment and present value of the annuity. The…

Q: (Q25) You were given an annuity 4 years ago (in 2019) that guarantees a payout of $5,000 every 3…

A: The PV of an investment refers to the cumulative value of its cash flows at present assuming they…

Q: 4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in…

A: Annual Deposit = 1000 Time period of deposits = 3 years Interest Rate = 10%

Q: How much would be in your savings account in seven years after depositing S290 today if the bank…

A: Future value is the value of current cashflow compounded at specified rate to future date. formula:…

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A: Due to inflation prices increase but if the interest rate do not increase in the proportion than…

Q: Q1. You plan to contrībute Ł6,000 at the end of every three months (that is, at each quarter-end) in…

A: In order to know the time period required to reach a certain financial goal of an individual or…

Q: Assuming an interest rate of 6.88% compute how much income you will have each month if you save $500…

A: A fixed amount of money paid to an individual throughout, without any end is known as an annuity.…

Q: ou are offered an annuity that will pay R17,000 per year for 7 years (the first payment will be made…

A: Given: Annuity amount = R17,000 Year = 7 Discount rate = 11%

Q: The $9.4M lottery that you just won actually pays ($9.4M divided by 40) per year for 40 years. If…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: 4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in…

A: First we need to find the future value of 1000 riyals deposits in year 2023. Then we need to find…

Q: 1.Compute the present value of an annuity of $503 per year for 18 years, given a discount rate of 8…

A: The present value of money is a financial concept that refers to the current worth of a future sum…

Q: What's the present value, when interest rates are 8.5 percent, of a $195 payment made every year…

A: Calculation of present value:- Present value is $ 2,294.12   EXPLANATION:- Annual payment(given)…

Q: You are paid £3,500 annually for 8 years, with the first payment due in one year and the last…

A: Present value is the current worth of a future payment or stream of payments, taking into account…

Q: Engr. Velasco decided to subscribe in a globe promo which must be paid one thousand pesos per month…

A: The value of the money today will be the present value of the said payments.

Q: You own a hotel that you will receive EURO. 150,000 in rental income for next year. The rent will be…

A: Solution:- When an equal amount is receivable each period with a constant growth rate over a number…

Q: #2 - You expect to receive a payment of $1 million in a year. That annual interest rate is 5%. What…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly.…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: ou decide to invest $10.5k today into a security that will make fixed annual payments to you of…

A: Today's investment amount = $10,500Interest rate = 7.5%Annual payment = $2,152

Q: Suppose that you will receive annual payments of $10,000 for a period of 10 years. The first payment…

A: Given: Annual payments = $10,000 Interest rate = 6% Period = 10 years

Q: suppose that you would like your retirement account, which has a 5% APR compounded monthly, to pay…

A: The value of a series of repeating payments at a certain date in the future is known as the future…

Q: Suppose you will receive OMR 1 each year for the 3 coming year the Interest Rate is 10% Question:…

A: Calculation of future value annuity: Answer: Future value annuity is OMR 3.31

Q: Q5. ASSUME YOU WILL INVEST IN A PROJECT THAT WILL PROVID 1000 JD AT THE END OF EACH YEAR FOR 5 YEARS…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: You are planning to make monthly deposits of £400 into a retirement account that pays 7 per cent…

A: Solution:-When an equal amount is deposited each period at end of period, it is called ordinary…

Q: ered by a bank an interest rate of 6.5% per annum, compounded annually. How much money will the…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: Suppose an investor will receive payments at the end of the next six years in the amounts shown in…

A: Present value is computed by following formula:-PV = wherePV  = present value of amountFV = Future…

Q: What is the present value of all these payments using an interest rate of 1%?

A: To calculate the present value of cash flow where the annual income is fixed we use the formula, PV…

Q: 2. You deposit P25,000 annually for 6 years on an investment that has a rate of return of 5.2% per…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: A $1,000,000 lottery prize pays $50,000 per year for the next 20 years. If the current rate of…

A: The value of the lottery prize today is calculated as present value of annuity

Q: What is the present value of $6,000 paid at the end of each of the next 87 years if the interes The…

A: Present value is today equivalent value of cash flows that are to be received in the future period…

Q: ou are promised 5 (yearly) payments of 500 EUR from your fairy godmother. The first payment is…

A: We can compute the present value of all promised payments at the bank agreed interest rate of 3%.

Q: A9. If the nominal rate of interest on a loan is 16.3% and interest is compounded monthly, what is…

A: Using excel effective rate function

Q: You have just won a “Philippine Lotto Lottery”. Lotto officials offered you the choice of two…

A: The present value of both the alternatives needs to be considered for making a decision. The choice…

Q: If you deposit OMR 19500 in your account in a bank; suppose the bank pays 16.15% compound interest…

A: Present value is OMR 19500. This amount earns interest at 16.15% interest rate that compounds…

Q: is the annual effective rate of interest earned on

A: The effective interest rate is considering effect of the compounding of the interest rate and this…

Q: A. find the monthly payment of an ordinary if the present value is P18,500 with an interest rate of…

A: A) Present value of annuity = P 18500 Interest rate = 10% quarterly compounded n = 6 years = 72…

Q: What is the present value of all these payments using an interest rate of 2%?

A: Given in the question is that 1,000 is received as annuity for the period of seven years. The first…