A certain annuity pays $108 at the end of every 3 months. If the present value of the annuity is $1,200 and the accumulated amount is $2,000, determine the nominal rate.
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- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the accumulated amount of the annuity. (Round your answer to the nearest cent.) $2500 annually at 7% for 10 years.In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.Find the accumulated amount of the annuity. (Round your answer to the nearest cent.) $1000 monthly at 6.6% for 20 years.A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 11%?
- 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%. Show your stepsA perpetuity will pay $800 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 3%?An annuity provides for 12 annual payments. The first payment is $100. paid at the end of the first year, and each subsequent payment is 5.0% more than the once preceding it. Calculate the present value of this annuity if i= 7.0%.
- An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i if the annuity pays $52.50 at the end of every 6 month period, with the first payment at the end of the first year.A perpetuity pays $100 each year, with the first payment scheduled two years from now. Assume that the effective annual interest rate for the next five years is 8%, and thereafter it is 5%. Find the present value of the perpetuity.Find i (the rate per period) and n (the number of periods) for the following annuity. Semiannual deposits of $3,200 are made for 99 years into an annuity that pays 7.5% compounded semiannually.
- Suppose the amount of an ordinary annuity that consists of 10 yearly payments of 150$ , provided that the interest rate is 13% compounded annually. Compute the amount of ordinary annuity.If $417.00 is deposited at the end of each year for 6 years into an ordinary annuity earning 4.08% interest compound semiannually, construct a balance sheet showing the interest earning during each year and the balance at the end of each year. Assume this annuity rounds the interest and balance to the nearest penny at the end of each year.An annuity due which pays 100 per month for 12 years has a present value of 7,908. Calculate the annual effective interest rate used to determine the present I value.