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(a) Compute the present value of an
(b) Compute the accumulated value of an annuity immediate that makes semi-annual payments of £500 for 10 years and then it makes annual payments of £1,000 for another 10 years. The annual effective rate is 4%.
(c) The annual effective rate is 5%. An annuity is paid continuously at a rate of P pounds per month. Its accumulated value after 10 years is £10,000. Find the monthly payment rate.
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- (a) Compute the present value of an annuity due that pays £2,000 annually, at a rate of 3% p.a. effective, for 20 years. (b) Compute the accumulated value of an annuity immediate that makes semi-annual payments of £500 for 10 years and then it makes annual payments of £1,000 for another 10 years. The annual effective rate is 4%. (c) The annual effective rate is 5%. An annuity is paid continuously at a rate of P pounds per month. Its accumulated value after 10 years is £10,000. Find the monthly payment rate.a) Compute the present value of an annuity immediate that pays £100 at the end of each month for 5 years at a rate i = 7.5% p.a. effective. b) Compute the accumulated value after 10 years of an annuity due that pays £10,000 per year in equal quarterly installments at a rate i = 7.5% p.a. effectiveThe effective rate of interest is 6% per annum. An annuity is payable annually in arrears for 25 years, where the first payment is £10,000 and the payments increase by £2,000 each year. i) Calculate the present value of this annuity. ii) Calculate the value of this annuity at the end of the payment stream.
- Compute the accumulated value of an annuity immediate that makes semi-annual payments of £500 for 10 years and then it makes annual payments of £1,000 for another 10 years. The annual effective rate is 4%.A loan is to be repaid by an annuity payable monthly in arrears over a 5-year period. The annuity starts at a rate of £200 per month and increases each month by £5. Repayments are calculated using a rate of interest of 8% per annum effective. (i) Calculate the amount of the original loan to the nearest £. (ii) (iii) Calculate the capital outstanding at the end of the first year (after the payment due has been made) to the nearest £0.01. Hence, or otherwise, calculate the capital and interest components of the 13th and 14th payments.(a) Compute the present value of an annuity immediate that pays £50 per year for 10 years at an effective rate of 7% p.a. (b) Compute the accumulated value after 10 years of an annuity immediate that makes quarterly payments of £50 at an effective rate of 3% p.a.
- 2. (Annuities) (a) at a rate of 3% p.a. effective, for 20 years. Compute the present value of an annuity due that pays £2,000 annually, (b) semi-annual payments of £500 for 10 years and then it makes annual payments of £1,000 for another 10 years. The annual effective rate is 4%. Compute the accumulated value of an annuity immediate that makes The annual effective rate is 5%. An annuity is paid continuously at (c). a rate of P pounds per month. Its accumulated value after 10 years is £10,000. Find the monthly payment rate.Find the present value at outset of a level annuity of £1500 per year, payable annually in arrears for 15 years, deferred for 6 years, if the effective rate of interest is 9% per annum during the first 10 years and 8% per annum thereafter.Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $168, 000; monthly payments for 5 years; interest rate 3% .
- A 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments are also 1000, and then subsequent payments increase by 5.06% over their previous payment. Determine the present value of the annuity using an interest rate of 8%, compounded quarterly. A) 58,295 B) 59,570 C) 60,845 D) 62,120 E) 63,395suppose 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 change$360,000 is invested in a perpetuity at an interest rate of 5.2% per annum. a. Find the monthly payment that the perpetuity provides. b. After six years of monthly payments, how much money remains invested in the perpetuity?