An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year. Determine the value of the annuity immediately before the first payment using an annual effective interest rate of 7%. Show your steps

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: The present value of an annuity is the current value of future payments from an annuity, assuming a…

Q: If $417.00 is deposited at the end of each year for 6 years into an ordinary annuity earning 4.08%…

A: Here, Yearly Deposit is $417.00 Time Period is 6 years Interest Rate is 4.08% Compounding Period is…

Q: A 20 year annuity pays $50 at the beginning of each month during the first year, $55 at the…

A: Time period = 20 years  Nominal annual interest rate = 6% Increase in the amount on yearly basis =…

Q: A 11-year annuity pays $1,400 per month, and payments are made at the end of each month. The…

A: The idea of the time value of money (TVM) holds that a quantity of income is valued sooner than it…

Q: Find the amount accumulated FV in the given annuity account.  $150 is deposited monthly for 19 years…

A: Future Value is the value of all future cash flows compounding at a prescribed rate of return, for a…

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

A:

Q: An annuity-immediate has payments of $400, $600, $100 at the end of year for three years. Determine…

A: Convexity means a change in prices due to a change in interest rates. It is used by analysts for…

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 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments…

A: First payment = $ 1000 Next 5 payments = $ 1000 Growth rate in payments after 6 payments = 5.06%…

Q: Use the simple interest formula message to find the future value of an ordinary annuity of $3300…

A: An annuity is a payment series that provides the holder with future cash flows in exchange for a…

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Find the interest rate that an ordinary annuity pays, if the annuity pays $312 per month with its…

A: An annuity pays regular and constant payments over a period of time. Here the annuity amount is $312…

Q: The term of the annuity is year(s) and month(s).

A: Annuity refers to the pattern of payment made at equal intervals. It is a type of long-term…

Q: n annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate…

A: Present value of annuity can calculated by using Excel PV function.

Q: Find the future value of an annuity in 12 years if you deposit $105 at the end of each compounding…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. The…

Q: A perpetuity-immediate has payments of 10 at the end of year 1, 12 at the end of year 2, and level…

A: The duration of a perpetuity is simply equal to the weighted average time to receive the cash flows,…

Q: Calculate the present value of an ordinary annuity providing $500 every year for 6 years. The…

A:

Q: An annuity consists of 55 payments of $3480 at the end of each month. Interest is at j, = 12 %. Find…

A: The annuity refers to the regular payment or receipt that lasts over a period of time. The preset…

Q: Consider a perpetuity that pays 100 at the end of each year for the first 10 years and 50 at the end…

A: Perpetuity is series of cash flows which happens at a periodic interval till perpetuity

Q: An annuity-pays 18,000 per year for five years. The annual interest rate is 6%. Find the present…

A: i) Determine the present value of the annuity using the Excel PV function with the following inputs:…

Q: Find the present value of an ordinary annuity with payments of 13687 every 6 months for 3 years at…

A: The present value of annuity can be calculated with the concept of time value of money

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In this we need to find out monthly payment required for sinking fund.

Q: (2) A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…

A: Present value (PV) is a financial concept that represents the current value of a sum of money or a…

Q: Use the ordinary annuity formula shown to the right to determine the accumulated amount in the…

A: Principal amount = $60  Time period = 10 years  Interest rate = 5% Compounded = semi-annually

Q: Find the term of the following ordinary general annuity. State your answer in years and months​…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: An annual annuity-immediate pays $2000 at the end of the first year. The last payment is at the end…

A: The present value is the present worth of the amount that will be paid or received at future.

Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment are…

A: Annuity refers to a stream of constant cash flows occurring at fixed intervals like monthly,…

Q: An annuity provides for 12 annual payments. The first payment is $100, paid at the end of the first…

A: The above example is the type of growing annuity. We need to find out the present value of this…

Q: An annuity pays a fixed amount of $3,000 at the end of each of the next 5 years. Assume the interest…

A: we will be using excel function =PV and =FV to calculate present value and future value of annuity…

Q: An annuity has $159 beginning of month deposits for 10 years with a rate of interest of 6%…

A: An annuity due is a condition where the contribution is made at beginning of the period for a…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: To calculate the Required payment of sinking fund, PMT function in the excel can be used. PMT(rate,…

Q: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: FV of annuity = P * [ (1+r)^n  - 1 ] /r  Where, P = Periodic payment i.e. $1700 n = no. of…

Q: Determine the amount of the ordinary annuity at the end of the given period. (Round your final…

A: When the payments are made at the end of each period it is ordinary annuity. It is usually made at…

Q: If you have a 13-year annuity paying $209 quarterly beginning in 6 years when interest is 3.13%…

A: First payment takes place in the beginning of 6th year. The payments are made quarterly.

Q: Assume that an annuity has an annual cash flow of $375 in Years 11 through: Also assume that the…

A: Value of annuity is the present value of cash flow from the annuity based on the time and interest…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In an ordinary annuity, the amount deposited every period at the end of regular intervals grows at…

Q: Use the appropriate formula to find the value of the annuity. b. Find the interest.   Periodic…

A: FUTURE VALUE    Future value is the value of an asset at a specific date.  Future value is…