An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the 4th year. Find its present value at an annual effective rate i = 4%. %3D
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- An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i if the annuity pays $52.50 at the end of every 6 month period, with the first payment at the end of the first year.An annuity-immediate has payments of $400, $600, $100 at the end of year for three years. Determine the convexity of the payments evaluated at an annual effective rate of interest equal to 6%.An annuity pays 2 at the end of each year for 18 years. for 9 Another annuity pays 2.5 at the end of each At an effective annual interest rate of i, 0 < i < 1, the present values of both annuities are equal. Calculate i. year years.
- A perpetuity-immediate has payments of 10 at the end of year 1, 12 at the end of year 2, and level payments of 14 at the end of each year thereafter. Calculate the duration of the perpetuity if the annual effective interest rate is 6%.An annuity provides for 30 annual payments. The first payment of $100 is made immediately and the remaining payments increase by 8% per year. Interest is calculated at 13.4% per year. Calculate the present value of the annuity. Possible Answers A $1,423 B $1,590 C $1,614 D $1,866 E $1,944A 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 $2,000, determine the nominal rate.
- Determine the present value of an ordinary annuity paid annually for 25 years if payments are 1.200$ per year for the first 7 years, 5.500$ for the following 8 years and 2.500$ in the final 10 years. Interest is j12 = 6% throughout the entire period.An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i if the annuity pays $52.50 at the end of every 6 month period, with the first payment at the the end of year. please hand written solution thankuAn annuity pays a fixed amount of $3,000 at the end of each of the next 5 years. Assume the interest rate is 8%. Use Excel, and list the time period (0, 1, 2, 3, 4, 5) and the amount $3,000. Then, Use Excel function to calculate the present value of the annuity.Use Excel function to calculate the future value of the annuity 5 years (enf of 5th year) from now.Submit the Excel file with all the details of time periods, amount of payment, and the Excel functions used to calculate the answers.
- (2) A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In subsequent years each payment increases by $5 over what it was the previous year. Find the present value of the annuity if i = 3%.3.) Find the present value of an annuity in perpetuity where payments are $1, 000 at the beginning of the first year, third year, etc. and payments are $1, 500 at the beginning of the second year, fourth year, etc. Here effective annual interest is 5%A perpetuity-immediate pays $100 in the first 10 years, $150 in the next 10 years and $200 in all subsequent years. Determine the present value of these payments at an annual effective interest rate of 3.85%.