An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How much would it cost to purchase this annuity today? O 103,500 O 87,339 O 81,367 133,591

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: An annuity is a type of financial product offered by insurance companies and financial institutions.…

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4.5 years. If…

A: Final amount = $50,000Time = 4.5 years Rate = 6.23% compounded semi-annually

Q: A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years.…

A: Using excel PV function

Q: You have a $50,000 twenty year growing annuity earning 8 percent interest compounded annually.…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: The present value of an annuity using an effective annual discount rate of 12% is $40,043.69. This…

A: An annuity is a payment series where a periodic sum is paid in exchange for a lump sum payment. It…

Q: An annuity makes semi-annual payments for 10 years. The first year the payments are 100 and each…

A: Solution- Step (1) Given that Amount of first payment =100 Numbers of year =10 Number of semi-annual…

Q: A growing annuity pays $1,000 at the end of the second year (t=2). The payment grows 3% per year…

A: Payment after second year = $1000 Number of payments = 5 Growth rate = 3% Discount rate = 8%

Q: If $84,000 is invested in an annuity that earns 5.2%, compounded quarterly, what payments will it…

A: Investment (PV) = $84000 Interest rate = 5.2% Quarterly interest rate (r) = 5.2%/4 = 1.30% Period =…

Q: If $235,000 is deposited now, how much annuity at the end of each year can a person get annually…

A: Deposit amount (D) = $235000 n = 3.5 years r = 8% Let annuity at the end of each year = A

Q: For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years.…

A: The annuity is the periodic payment received in each period. The present value is the discounted…

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

Q: Jami Minard wants to receive an annuity of $5,000 at the beginning of each year for the next 10…

A: Periodic Payment = $5,000 Time Period = 10 years Interest rate = 7%

Q: For given information answer the Questions no (3) and (4) for a 10,000 per month annuity that has a…

A: FV=P1+in-1iFV=Future valueP=Periodic paymenti=rate of returnn=number of period

Q: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,060 is deposited…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: What is the present value of a perpetuity that pays $1,500 every year at a discount rate of 7.5%?…

A: A perpetuity is a cash flow that goes on forever. It is never ending and hence is perpetual in…

Q: 4: A perpetuity pays $3400 at the end of every month for 11 months of each year. At the end of the…

A: Perpetual refers to the forever kind of transaction. This means equal amount of cash flow at an…

Q: An annuity with a cash value of $11,300 pays $950 at the beginning of every three months. The…

A: Given: Particulars Amount Cash value(PV) $11,300 Payment (PMT) $950 Interest rate 6%

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

Q: if P20,879 is deposited each year for 8 years at an interest rate of 10.257% compounded bi-monthly,…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: A 15-year annuity pays $2,050 per month, and payments are made at the end of each month. If the APR…

A: Present Value is the current price of future value which will be received in near future at some…

Q: 9) A retirement gratuity of $123 900.00 is invested in annuity deferred for 10 years. The annuity…

A: The present value of an annuity is the current worth of a cash flow paid/received at the begging of…

Q: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,038 is deposited…

A: Monthly deposit (C) = $1,038 Monthly interest rate (r) = 0.00575 (i.e. 0.069 / 12) Monthly period…

Q: A perpetuity pays $85 per year and costs $950. What is the rate of return? 8.95% 9.39% 9.86%…

A: The objective of the question is to calculate the rate of return on a perpetuity. A perpetuity is a…

Q: How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter…

A: given information   perpetuity that pays at the end of every quarter = $2000 interest rate = 2.5% =…

Q: A perpetuity pays $4200 at the end of every month for 11 months of each year. At the end of the 12th…

A: Perpetual refers to the forever transaction. This means an equal amount of cash flow at an equal…

Q: How much more is a perpetuity of $1,500 worth than an annuity of the same amount for 20 years?…

A: Solution:- When an equal amount is received each period at end of period, it is called ordinary…

Q: If you put up $29,000 today in exchange for a 7.25 percent, 13-year annuity, what will the annual…

A: An annuity refers to a payment series that is provided in exchange for a lump sum payment. It is…

Q: •An insurance company offers to pay you $1,000 per year for 10 years if you will pay $6,710 up…

A: We can solve this using Present value of annuity formulaPresent value of annuity is =…

Q: Acme Annuities recently offered an annuity that pays 5.4% compounded monthly. What equal monthly…

A: We need to use future value of ordinary annuity formula to calculate monthly deposit or payment. PMT…

Q: What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000…

A: The objective of this question is to calculate the present value of a 4-year ordinary annuity of…

Q: Annual payments of 105,000 with interest rate of 12% compounded annually for 5 years. Find the…

A: Annuity: The amount accumulated by periodic deposits is known as an annuity. The future value of a…

Q: How many regular payments will be made?

A: Present Value: It is the present worth annuity payments, discounted over a period of time at an…

Q: Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,706 is deposited…

A: Monthly deposit (C) = $1,706 Monthly interest rate (r) = 0.00425 (i.e. 0.051 / 12) Monthly period…

Q: You want to establish an annuity that will pay you $14,000 per year for 22 years. If the prevailing…

A: We need to use present value of ordinary annuity formula to calculate amount we need to deposit…

Q: A new RRSP is set up with monthly contributions of $300 for five years earning 9% compounded…

A: Annuity is a contract between two parties where one makes a series of periodic cash flows in…