An annuity pays tom from time 2 to time 7 years at an annual rate of 2t - 3 at time t . For a 6% force of interest, calculate the accumulated value after 7 years
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: an annuity with a cash value of $13500 earn 7% compounded 7% semi annually . end of period semi…
A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…
Q: Find the value of an ordinary annuity if payments are made in the amount of R and interest is…
A: Annuity means regular payments or receipt of the same amount at the same interval period. Future…
Q: The FV of an annuity where payments are made at the beginning of the year is $6,456 and the FV of an…
A: Let annual Payment = P Interest Rate =r Time Period(n) = 5
Q: What is the present worth of a 3 years annuity paying P3,000 at the end of each year, with interest…
A: Annuity is a series of uniform cash flows over a period of time.
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: Directions: Complete the table by computing the future value and present value of an ordinary…
A: “Since you have asked multiple question, we will solve the first question (activity 1.1) and 2…
Q: The future value is $
A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n - 1) /interest…
Q: Find the future value and the present value of an annuity of P 15,000 payable at the end of every…
A: The deferred annuity is a series of cashflows which starts after m periods i.e. first cashflow is…
Q: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…
A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…
Q: Find the amount of an annuity consisting of 16 annual payments of $1000 each into an account that…
A: A regular series of fixed payments that are made or received at equal time intervals is term as the…
Q: An annuity with a cash value of $12,000 pays $2,050 at the beginning of every six months. The…
A: Annuity: An annuity is the series of payments which is received or paid for a certain period of…
Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…
A:
Q: An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i…
A: Answer Annuity formula PV = C / R Where: PV = Present value C = Amount of continuous cash payment r…
Q: Find i (the rate per period) and n (the number of periods) for the following annuity. Quarterly…
A: Solution:- An equal amount deposited every period is known as annuity. Now, in annuity, rate per…
Q: Determine the present value of an annuity for 15 years if the interest rate is 8.8% per annum…
A: An annuity is a constant stream of cash flows. In this case the cash flow amount is $72.50 in each…
Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…
A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…
Q: Calculate the future value of an ordinary annuity that pays $2,350 at 6% for 6 years. Also determine…
A: Annuity is the series of periodic payments. If the annuity payment is made at the end of the periods…
Q: Annuity A pays 1 at the beginning of each year for five years. Annuity B pays 1 at the beginning of…
A: Macaulay Duration is a weighted average of the maturities of all the income streams of a bond or a…
Q: A retirement account has $260,000.00 that will be used to start an annuity that earns 4.1%,…
A: Calculate the time period in month:
Q: certain annuity pays 80.00 at the end of every 3
A: The nominal rate can be computed as follows :
Q: Find the future value of an annuity when the payment is P13,750 quarterly, the interest is 6.5%…
A: Compounding is the process of crediting interest to both an existing principal amount and previously…
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: An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year.…
A: Given, Payment made is $8 starting from the end of year 12th. Since payment is starting from the…
Q: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4 % interest for 10…
A: An annuity is a kind of deposit payment that an individual makes into an investment account or a…
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: An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i…
A: PRESENT VALUE OF PERPETUITY FORMULA: present value =periodic cashflowinterest rate per period
Q: Find the future value of the following ordinary annuity. Payments are made and interest is…
A: Future value of an ordinary annuity The value of the sum of future cash flows is called the future…
Q: Find the future value of the given annuity (Round your answer to the nearest cent.) Ordinary…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Assume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded…
A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…
Q: What is the present value of a perpetuity with payments starting one year from now. The first…
A: Present value of perpetuity can be calculated by formula that cash flow of first year divided by…
Q: An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year.…
A: Annual payment (P) = 8 Number of payments (N) = 5 Interest rate (R) = 7%
Q: If money is worth 6% compounded semi- annually, find the present value and the amount of an annuity…
A: The payment which is made at the end of 6 months is known as semi-annual payment. By multiplying…
Q: Find the present value of an annuity due that pays $3000 at the beginning of each quarter for the…
A: Annuity due: Annuity due makes payments at the beginning of the year. Ordinary annuity: Ordinary…
Q: An annuity pays each period for 11 periods, the appropriate discount rate/period is 5.3%, and the…
A: Total Periods(n) = 11 Rate(r) = 5.3% Present Value (PV) = $ 510.00 As per Formula, Present…
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: If you have a 13-year annuity paying $305 quarterly in 5 years when interest is 3.25% compounded…
A: Time Period = 13 Years Monthly Payment made at beginning = $305 Payment started in 5 years…
Q: A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…
A: “Since you have posted multiple questions, we will solve first question for you. If you want any…
Q: A 5-year annuity-due has semiannual payments with the first payment starting two years from now. The…
A: First semi annual payment = 800 Decrease in each payment = 50 Interest rate = 8% Semi annual…
Q: An increasing annuity makes annual payments, and the first payment occurs in 6 months. The annuity…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: An annuity pays $5,000 per month for 5 years at an annual interest rate of 7.5% compounded monthly.…
A: Monthly payment (M) = $5000 Number of payments (n) = 5 years = 60 months r = 7.5% per annum = 0.625%…
Q: An annuity-immediate has 21 payments of $800 per period. The effective rate of interest per period…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest…
A: Annual saving (A) = $2700 r = 8% compounded continuously n = 25 years
Q: Find the accumulated value of an annuity-immediate which pays 1 at the end of each half-year for…
A: Compounding is a technique which is used to compute the future value (FV) of present cashflows by…
Q: What is the present value of an ordinary annuity with annual payments of $670 at 7% annual interest…
A: Annuity is the periodic payments received or paid at regular intervals. Present value of annuity is…
Q: Assume that you make monthly payments of $625 into an ordinary annuity paying 4% compounded monthly.…
A: Using excel FV function
Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…
A: Net present value is defined as the discounted cash flow technique which applies to weight the items…
Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value…
A: Given: Present value = $9,500 Payment = $1,000 Payment interval = 6 n = 2 Rate of interest (r) =…
Q: An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year.…
A: We need to use present value of annuity formula to calculate value of annuity immediately before the…
An
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.A 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.An annuity pays 8 at the end of each year for five years, starting atthe end of the 12th year. Determine the value of the annuity immediately beforethe first payment using an annual effective interest rate of 7%. Show your steps
- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.Find the accumulated amount of the annuity. (Round your answer to the nearest cent.) $1000 monthly at 6.6% for 20 years.Find i (the rate per period) and n (the number of periods) for the following annuity. Semiannual deposits of $3,200 are made for 99 years into an annuity that pays 7.5% compounded semiannually.The amount (future value) of an ordinary annuity is given. Find the periodic payment. (Round your final answer to two decimal places.) A = $18,500, and the annuity earns 6% annual interest compounded monthly for 10 years.
- 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.Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $168, 000; monthly payments for 5 years; interest rate 3% .Find the future value of an annuity due with monthly payments of $100 that earns 4 1/4% interest after 2 years.
- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the accumulated amount of the annuity. (Round your answer to the nearest cent.) $2500 annually at 7% for 10 years.Determine the value of an ordinary annuity if $100 is deposited each month into an account earning 4.1% interest compounded monthly for 25 years.The compounding periods and the payment periods are the same for an annuity and for an amortization. Determine the present value of the annuity that will pay the given periodic payments. (Round your final answer to two decimal places.) Monthly payments of $380.80 for 6 years at 4.6% interest.