An annuity pays $13 per year for 100 years. what is the future value (PV) of this annuity at the end of those 100 years given that the discount rate is 8%
Q: Calculate the future value of an ordinary annuity consisting of annually payments of $1,500 for 6…
A: An ordinary annuity is that annuity in which payments are made at the end of each period.
Q: An investment is expected to result in equal payments of $3160.00 at the end of each of the next 5…
A: The question is based on the application of the time value of money for annuity payments. Annuity…
Q: What is the present value of an annuity due that promises $20,000 per year for 20 years if the…
A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…
Q: What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?
A: Details given are : Annual cashflow = $300 time period = 5 years Interest rate = 8% We require to…
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A: Using the PMT function in excel
Q: four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how…
A: Present value =10000 interest rate =5% Period =4 years Present value FACTOR =1-(1.05)-4/0.05…
Q: An investment is expected to result in equal payments of $9940.00 at the end of each quarter for the…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: what is the future value of an ordinary annuity of 2,200 per year for 15 years compounded at 16…
A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.
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A: In this we have to calculate present value FACTOR of annuity and from that we can calculate the…
Q: An annuity pays $100 at the end of each of the next 10 years and 200 at the end of each of the five…
A: The present value(PV) for annuity payments will the sum of current worth of individual payment. It…
Q: A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is…
A: Computation of perpetuity at t=4:
Q: Calculate the present value of an annuity with monthly deposits of $2,000 at 5% for 20 years.…
A: Monthly deposits (M) = $2000 Interest rate (r) = 5% per annum = 0.4167% per month n = 20 years = 240…
Q: What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?
A: The present value of annuity refers to the current value of a series of future payments. The present…
Q: What is the present value of a four-period annuity of $200 per year that begins two years from today…
A: Annual annuity amount = $200 Time Period = 4 years Discount Rate = 9%
Q: What is the present value of a $90,000 annual annuity for 10 years with an additional $1,000,000…
A: The present value of investment is the sum of present value of annuity and the present value of…
Q: An annuity offers $1,000 for 10 years. If you can earn 12 percent annually on your funds, what is…
A: Annuity Amount = $1,000 Years(n) = 10 Interest Rate(r) = 12% Present Value of Annuity =…
Q: Calculate the present value of a four-period annuity of $200 per year that begins two years from…
A: Present value is calculated by discounting all the future cashflows
Q: Given a 10 percent discount rate, what is the present value of a perpetuity of 51,000 per year if…
A: perpetuity is a security that pays for an endless measure of time. In money, interminability is a…
Q: If (P) dollars are invested at the end of each year in an annuity that bears interest at an annual…
A: The future value of a regular annuity amount can determine with the help of the future value of the…
Q: A 5-year $100 ordinary annuity has an annual interest rate of 10%. What is its present value?
A: Present value of annuity is the equivalent value of all the cash flows which will be incurred at…
Q: what's the future value of the same annuity due?
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…
Q: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…
A: Using The Future value function in excel
Q: the next 3 years (ordinary annuity). If the appropriate required rate of return (discount rate) is…
A:
Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…
A: Required :The discounted value of these cash flows.
Q: What is the future value of an $800 annuity payment over 15 years if the interest rates are 6…
A: In this question we require to calculate the future value of annuity. Annuity amount (PMT) = $800…
Q: You are considering an annuity which costs $120,000 today. The annuity pays $13,255 a year at an…
A: Given: Present value of Annuity=$120000Annuity =$13255Interest rate (r)=9.75%
Q: What is the present value of a $400 annuity payment over 5 years if interest rates are 6 percent?
A: given, A = $400 r=6% n=5 years
Q: What is the present value of a $700 annuity payment over six years if interest rates are 10 percent?
A: The present value of annuity refers to the current value of a series of future payments. The present…
Q: An annuity is set up that will pay $1,500 per year for nine years. What is the present value (PV) of…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: The present value of an annuity is payable annually for 2 years, with the first payment at the end…
A: Value of an annuity refers to nominal worth for each payment. It implies for amount at which annuity…
Q: What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be…
A: As a fist step, let's shifts ourselves to the end of t = 10 years.Annuity, A = $ 2,500; n = number…
Q: You are considering an annuity that costs $91,288 today. The annuity pays $6,500 a year at an annual…
A: The length of the annuity will depend upon the costs of the annuity, the periodic payment, and the…
Q: A. What is the value of the annuity 5 years from now? B. What is the current value of the annuity?
A: Solution:- Given, A 5-year annuity of ten = $50,000 semi annul payments Begin 9 years from now,…
Q: An annuity pays $1000 at the end of each year for 5 years and then $2000 at the end of each year for…
A: The discounted value is present value of future cash receipts
Q: An annuity pays $15 per year for 60 years. What is the future value of this annuity at the end of…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years?…
A: A perpetuity is payment for ever An annuity is payment at the end of the period for a limited period…
Q: What is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8…
A: Given details are: Annuity payment (PMT) = $1000 Time period (n) = 4 years Interest rate (I/Y) = 8%…
Q: If the future value of an ordinary, 7-year annuity is $9,900 and interest rates are 9.0 percent,…
A: Given, Future Value = $9,900 Interest Rate = 9.0% Term = 7 years Formula: Future value of annuity…
Q: Future Value of an Annuity What is the future value of a $1,000 annuity payment over 8 years if the…
A: Annuity Payment = 1000 Time Period (N) = 8 years Interest Rate = 10%
Q: an investment is expeted to result in equal payments of $9740.00 at the end of each month for the…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: Suppose an annuity will pay $11,000 at the beginning of each year for the next 7 years. How much…
A: Annuity refers to the periodic payment which can be made monthly, quarterly, semi-annually or…
Q: A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is…
A: The question is based on the concept of perpetuity payment and concept of time value of money.Future…
Q: A 10%, 4-year annuity pays $500.00 each year. What is the future value of the annuity?
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A 10-year annuity of twenty $10,000 semiannual payments will begin 12 years from now, with the first…
A: Semiannual payment (A) = $10000 Annuity duration (n) = 10 years = 20 periods First payment (CF)…
Q: What's the future value of a 7 percent, 5-year ordinary annuity that pays $300 each year?
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: What is the present value of an annuity due of $10,000 per year, with the first cash flow received 5…
A: Present value of an annuity the present value of future cashflows
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityAn annuity pays $15 per year for 60 years. What is the future value of this annuity at the end of that 60years given that the discount rate is 7%?An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end of those 100 years given that the discount rate is 8% the first payment will occur in exactly one year.
- A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment? Use a nominal rate of 7.23%.What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?
- What is the present value of a four-period annuity of $200 per year that begins two years from today if the discount rate is 9%?What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10 percent? What would be the future value if it were an annuity due?What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.
- Find the present value of a 5-year annuity due if the annual payments are $600 and the interest rate is 11%. What is the difference between the present value of the annuity and the present value of the ordinary 5-year annuity?A perpetuity will pay $1,000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?The present value of an annuity is payable annually for 2 years, with the first payment at the end of 10 years is 42,114. If money is worth 3.6%. what is the value of annuity?