A perpetuity pays $4200 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 9.9%, what is the present value of this perpetual annuity?
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A perpetuity pays $4200 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 9.9%, what is the present value of this perpetual
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityAn annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate is 13 per cent compounded monthly for the first 9 years and 8 per cent compounded monthly for the next 13 years, what is the present value of the annuity?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.
- A 13-year annuity pays $1,200 per month, and payments are made at the end of each month. The interest rate is 13 percent compounded monthly for the first five years and 11 percent compounded monthly thereafter. What is the present value of the annuity?A 13-year annuity pays $1,400 per month, and payments are made at the end of each month. The interest rate is 7 percent compounded monthly for the first six years and 5 percent compounded monthly thereafter. What is the present value of the annuity?What amount is required to purchase an annuity that pays $7000 at the end of each quarter for the first five years and then pays $1500 at the beginning of each month for the subsequent 15 years? Assume that the annuity payments are based on a rate of return of 4.3% compounded quarterly.
- A 15-year annuity pays ¢5,500 per month, and payments are made at the end of each month.If interest rate is 20% compound monthly for first seven years and 18% compound monthlythereafter, what is the present value of the annuityIf you have a 12-year annuity paying $496 quarterly in 10 years when interest is 6.65% compounded semi-annually, what is the number of annuity payments? Treat the deferred annuity as an ordinary annuity with the first annuity payment at the 10-year markA 20 year annuity pays $50 at the beginning of each month during the first year, $55 at the beginning of each month during the second year, $60 at the beginning of each month during the third year, and so on. The nominal annual interest rate is 6% compounded monthly. Calculate the present value of the annuity.
- A perpetuity will make a sequence of annual payments of 2800, 3000, 3200, ..., with the first payment coming a year from now. If the present value is 107728.89 dollars, what is the effective rate of interest?An annuity pays $ 15,000 per year. Due to inflation, each year a dollar is worth what $ 0.970 was worth the previous year. Payment is made at the beginning of each year. What is the present value of the annuity if it is paid over three years (starting immediately)?A twenty-year annuity pays $940 per month at the end of each month. For the first seven years, the nominal interest rate is8.7% compounded monthly. For the remaining thirteen years, the nominal interest rate is12.6%, compounded monthly. What is the present value of the annuity? The present value of the annuity is
