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a) Compute the present value of an
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. effective
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- (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.(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.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 value of an ordinary annuity if payments are made in the amount of R and interest is compounded as given. R=16000 4.4% interest compounded quarterly for 15 years future value of annuity And the amount from contributions and the amount from interest.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% .The 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.
- 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 of an ordinary annuity which has deposits of P60,000 semiannually for 5 years at 6.5% compounded semiannually.The following terms of payment for an annuity are as follows:Periodic payment = P20,000Payment interval = 1 monthInterest rate = 18% compounded monthly Terms = 15 years1. Find the present worth paid of all the payments if it is paid at the end of each month. 2. Find the difference between the sums of an annuity due and an ordinary annuity on these payments. 3. Find the difference between the present values of an annuity due and an ordinary annuity based on these payments. Anwers. 1. P1,214,911.246 2. P271,687.35 3. P18,628.67
- Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. Annuity Payment Annual Rate Interest Compounded Period Invested 1. $3,000 7% Annually 6 years 2. 6,000 8 Semiannually 9 years 3. 5,000 12 Quarterly 5 yearsFind 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. 7) $8000; quarterly payments for 8 years; interest rate 4.1%.Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. Annuity Payment Annual Rate Interest Compounded Period Invested 1. $4,000 7% Annually 5 years 2. 9,000 8 Semiannually 3 years 3. 3,000 8 Quarterly 2 years