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- 5. A perpetuity-due with annual payments of 100 has a duration of 26.88 years at an annual effective rate of interest i. Calculate the duration of this perpetuity if the annual effective rate of interest is i +1% instead of i. A) 21.19 B) 22.63 C) 24.95 D) 27.93 E) 28.31What is the present value of an ordinary annuity that pays $1,000 per year for 4 years, assuming the annual discount rate is 7 percent? a. $3,051.58 b. $762.90 c. $3,624.32 d. $3,738.32 e. $3,387.21The present value of a perpetuity paying 11 at the end of every 4 years is 0.82. Find the annual effective rate of interest i. A. 5.51% B. 22.06% C. 33.09% D. 31.51% E. 8.82%
- Annuity X and Y provide the following payments: End of Year Y 1-10 1 K 11-20 21-30 1 K Annuity X and Y have equal present values at an effective annual interest rate of 7.1773%. What is present value of X? What is K?How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.48At an annual effective interest rate of i, i > 0%, the present value of a perpetuity paying 10 at the end of each 3-year period, with the first payment at the end of year 6, is 32. At the same annual effective rate of i, the present value of a perpetuity-immediate paying 1 at the end of each 4-month period is X. Calculate X. a. 40.8 b. 39.8 41.8 d. 42.8 38.8 C. e.
- Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposit. M= $200 N=annually R=9% T=20 Answer choices: A.) 10,232.02 B.) 133,577.37 C.)11,258.31 D.)11,610.43 E.)9,664.34The value one unit of time after the last payment is made of an annuity of 9 paid in arrear at an interest of 5% for 5 years is Select one: O a. 9.07 b. 13.1 O c. 11.48 O d. 12.061. In a future value of 1 table: a. b. C. a. b. Annual Rate C. 11% 8% 8% Annual Rate 11% 8% 8% Number of Years Invested Save for Later Number of Years Invested 25 16 2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to 0 decimal places, e.g 45.) 7 eTextbook and Media 11 8 16 Number of Rents Involved 25 32 Compounded 28 Annually Quarterly Semiannually Frequency of Rents Annually Semiannually (a) Rate of Interest Quarterly % (a) Rate of Interest % % % % (b) Number of Periods % (b) Number of Periods Attempts: 0 of 3 used Submit Answer
- 4. A type of annuity in which the payments are made at the end of each payment interval. A. Annuity due B. Simple Annuity 5. Compounding quarterly means that the interest period is A. every year B. every 4 months 6. In a monthly payment of P 2,000 for 5 years that will start 7 months from now, what will be the period of deferral? A. 7 7. A loan is given an annual payment of P 8,000 for 12 years that will start 5 years from now. What is the period of deferral? A. 4 C. General Annuity D. Ordinary Annuity C. every 6 months D. every 3 months В. 5 С. 4 D. 6 В. 7 C. 12 D. 60An annuity pays $13 per year for 42 years. What is the future value (FV) of this annuity at the end of that 42 years given that the discount rate is 4%? OA. $817.59 B. $1,635.18 OC. $1,362.65 D. $1,907.71 ...