2:48 AM V←October 14, 202314:12 | United States, Wa...VPN YY13¹4Acme Annuities recently offered an annuity that pays 5.4% compounded monthly.What equal monthly deposit should be made into this annuity in order to have$76,000 in 10 years?CHEThe amount of each deposit should be $(Round to the nearest cent.)

Solution:-When an equal amount is deposited each period, it is called annuity.We know, future value…

Answered: Acme Annuities recently offered an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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0.02 100,000 9.954003994 RI9.954 9941 9.9003994 Hence, the amount of yearly withdrawal is P10,046.21.1 PERIODIC PAYMENT R OF AN ANNUITY: Periodic payment R can also be solved using the formula for amount Future value F or Present Value P of an annuity. mt 1+ F = R R = mt mt P. P R R = 1-(1+) Note: j-= n = mt where R is the regular payment P is the present value of an annuity F is the future value of an annuity j is the interest rate per period n is the number of payments What have I have learned... Complete the sentence below. Write your answers on a separate sheet of paper. 1. is a sequence of payments made at equal (fixed) intervals or periods of time. 2. is the sum of present value of all the payments to be made during the entire term of the annuity. 3. is an annuity where the payment interval is the same as the interest period. 4. is a type of annuity in which the payments are made at the end of each payment interval. is the sum of future values of all payments to be made 5. during…
For each of the following annuities, calculate the annuity payment. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Annuity Payment Future Value S $ S $ 24,050 950,000 760,000 130,000 Years 8 35 21 12 Interest Rate 4% 6 7 3
[2P2] Directions: Determine the kind of annuity used in the following situations. Then, solve the problem. Show complete solutions. What equal payments at the beginning of each 2 months for 4 years will discharge a debt of P180,000 due now if the interest rate is 18.48% compounded every 2 months? a. Kind of annuity: b. Computation:
4900 $585 PNG se th er ye the What is the present value of an annuity of $4,000 received at the beginning of each year for the next eight years? The first payment will be received today, and the discount rate is 9% (round to nearest $1). Select one: a. $36,288 b. $35,712 c. $25,699 d. $24,132 ✔
What will a deposit of $4500 at 7.8% compounded semiannually be worth if left in the bank for six years? Use the TMV calculator to fill in the table. N I% 7.8 PV -$4500 PMT 0 FV P/Y C/Y 2
Q19 Compute the present value of an $1,450 payment made in 10 years when the discount rate is 12 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) PRESENT VALUE?
How much money should be deposited today in an account that earns 5% compounded semiannually so that it will accumulate to $7000 in 2 years? (Round to the nearest pen ny - hundredth place. For example, $123.46) A= PCI) 7006 PCI nt CI+ a a 700U P(I 0.03 7000 PCI PC it 00116667) ay OO41666667 OOL 7, 7a 6. 6 C 7a6.6 7,726 64- 7/000 nd he depested
X 9.5.4 Question Help Y Scheduled payments of $969, $1386, and $617 are due in one year, four-and-a-half years, and five-and-a-half years respectively. What is the equivalent single replacement payment two years from now if interest is 8% compounded quarterly? The equivalent single replacement payment in S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Q9 A deposit of $720 earns interest rates of 8 percent in the first year and 11 percent in the second year. What would be the second year future value? (Round your answer to 2 decimal places.) FUTURE VALUE?
14 Ifyou put up $55.000 today in exchange for a 6.5 percent, 16-year annuity, what wil the, annual cash flow bet (Do not round Intermmediate.coleulations and round yourenswer to 2 decimal places, e.g., 32.16.)
list 12 K Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $156.00 1 month 5 years 5% semi-annually 3 4 The present value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 5 6
[2P2] Directions: Determine the kind of annuity used in the following situations. Then, solve the problem. Show complete solutions. What equal payments at the beginning of each 2 months for 4 years will discharge a debt of P180,000 due now if the interest rate is 18.48% compounded every 2 months?

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Acme Annuities recently offered an annuity that pays 5.49% compounded monthly. What equal monthly deposit should be made into this annuity in order to have $76,000 in 10 years? The amount of each deposit should be $ (Round to the nearest cent.)