A 15-year annuity pays $1,750 per month, and payments are made at the end of each month. If the APR is 9 percent compounded monthly for the first seven years, and APR of 6 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

A 15-year annuity pays $1,750 per month, and payments are made at the end of each month. If the APR is 9 percent compounded monthly for the first seven years, and APR of 6 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A 10-year annuity pays $1,850 per month, and payments are made at the end of each month. If the APR is 12 percent compounded monthly for the first five years, and APR of 8 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g... 32.16.) Present value
What's the future value of a 3-year $500 ordinary annuity, if the quoted interest rate is 11.35%, compounded semiannually? Note that the annuity payments are annual but that the compounding is semiannual. Round your final answer to 2 decimal places. $1,729.62 O $1.757.72 $1,888.60 O $1,777.10 O $1.676.69
What is the accumulated value after five years of payments of $20000 made at the beginning of each year if interest is 7% compounded quarterly? Please, note that I think this is a question of Annuities, and I believe time would be 20 (5 years compounded quarterly -> 4x a year) Isn't this a General Annuity Due question, where payments are made at the beginning of the payment intervals, and the payment and compounding frequencies are unequal.
If the present value of an ordinary, 6-year annuity is $6400 and interest rates are 2.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value $
Find the payment made by the ordinary annuity with the given present value. $242,665; quarterly payments for 15 years; interest rate is 7%, compounded quarterly The payment is $ **] (Simplify your answer. Round to the nearest cent as needed.)
An annuity pays 8 at the end of each year for five years, starting atthe end of the 12th year. Determine the value of the annuity immediately beforethe first payment using an annual effective interest rate of 7%. which answer is correct in the pictures ie $15.58 or $32.80 (dont use exel in the calculation)
Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). What is the future value of a 15-year annuity of $1,600 per period where payments come at the beginning of each period? The interest rate is 9 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value. For example, to find the future value of a $100 payment
Please help me with this and provide the working. thank you
The compounding periods and the payment periods are the same for an annuity and for an amortization. Determine the present value of the annuity that will pay the given periodic payments. (Round your final answer to two decimal places.) Periodic payments of $2400 annually for 13 years. The interest is 4% compounded annually.
What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment occurring at the end of year 10 ( that is, ten 1,600 payments occurring at the end of year 10 through year 19), given a discount rate of 9 percent?
A 25-year annuity was purchased with $225,000 that had accumulated in a RRSP. The annuity provides a semiannually compounded rate of return of 9.5% and makes equal month-end payments. What amount of principal will be included in Payment 206? What will be the interest portion of Payment 187? How much will the principal be reduced by Payments 50 to 100 inclusive? How much interest will be paid in the 14th year? What will be the amount of the final payment?
If you have a 13-year annuity paying $305 quarterly in 5 years when interest is 3.25% compounded semi-annually, what is the number of missed payments? Treat the deferred annuity as an ordinary annuity with the first annuity payment at the 5-year mark.

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