Annuity X pays $1,200 at each year-end for 15 years. Annuity Y pays $1,100 at the beginning of each year for 15 years. The effective annual rate is 8%. Which one is correct?     Annuity X has a higher present value than Annuity Y.     Annuity Y has a higher present value than Annuity X.     Annuity X has the same present value as Annuity Y.

Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…

A: Present value of annuity payment - it means present value of future annual equal payment made to a…

Q: You are given: i. The present value of an annuity-due that pays 300 every 6 months during the first…

A: Annuity 1: 300 for the first 15 years and 200 for the next 15 yearsPresent value of Annuity 1 =…

Q: A perpetuity paying $8600 at the end of each half-year is replaced with an annuity paying $X at the…

A: A perpetuity is the series of fixed payments that will be received for an infinite period.

Q: An annuity-due pays 100 in years 1 and 2, 99 in years 3 and 4, 98 in years 5 and 6, 97 in years 7…

A: The present value of a growing annuity due shows the current value of the annuity which is growing…

Q: uity X and Y provide the following payments: End of Year Y 1-10 1 K 11-20 2 21-30 1 K Annuity X and…

A: Annuity is a stream of constant regular payments.

Q: (a) Present value of Annuity A (b) X if present value of Annuity A is equal to present value of…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

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

A: Data given: Annuity=$2250 Additional at the end of Year 4=$3000 n=4 Interest rate=5%   Required:…

Q: You are comparing two annuities. Annuity A pays $110 at the end of each year for 5 years. Annuity B…

A: Annuity is the series of equal cash payments over the period.

Q: 9. A perpetuity due pays 600 in the first year, and in each subsequent year, the payment is 1%…

A: Given: PV = P + (1.01P)/(1 + i) + (1.02P)/(1 + i)^2 + (1.03P)/(1 + i)^3 + ...PV = 152,100 then use…

Q: future value

A: Future value is the value of money or asset in the future. It is very important to investors and…

Q: Consider two perpetuities (X and Y) at interest rate i. X provides level payments of $105 at the end…

A: Given, Perpetuity X  - Level payment of $105 at the end of each year . PV of $105 received at the…

Q: An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an…

A: given, ordinary annuity: A=p 1811 n =15 r=10%

Q: A perpetuity pays $85 per year and costs $3,580. What is the rate of return? Select the correct…

A: Given:Annual Payment = $85Cost of the Perpetuity = $3,580

Q: If the present value of an ordinary, 6- year annuity is $7,200 and inter present value of the same…

A: In ordinary annuity there are payments at the end of period only and in annuity due payments are at…

Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…

A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…

Q: Annuity A has 20 years annual payments as follows:- i) ii) iii) The first payment is 1000 made at…

A: Annuity A:First payment = $1000Interest rate = 5%Annuity B:Interest rate = 6%

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: If the five-year present value annuity factor is 3.60478 and the four-year present value annuity…

A: The objective of the question is to find the present value of $1 received at the end of five years…

Q: An annuity pays $12 per year for 47 years. What is the future value (FV) of this annuity at the end…

A: Annuity paid per year = $12Discount rate = 7%Number of years = 47 years

Q: What is the present value of an ordinary annuity with annual payments of $670 at 8% annual interest…

A: Given,The annual payment is, PMT = $670The interest rate per period is, r = 8% = 0.08The total…

Q: a. Calculate the annual cash flows ( annuity payments) from a fixed - payment annuity if the present…

A: Annual cash flows refer to the amount that defines the inflow and outflow of the cash during the…

Q: The present value of an annuity stream of $100 per year is $920 when valued at a 10% rate. By…

A: The annuity in which payments that are made at the beginning of each period, rather than the end, it…

Q: A perpetuity will pay $736 per year, starting five years after the perpetuity is purchased. (The…

A: Present value refers to the current worth or value of a future sum of money or cash flow. It is the…

Q: What is the future value​ (FV) of this​ perpetuity, given that the interest rate is 3​%?

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: perpetuity

A: Formula for present value of perpetuity: Present value of perpetuity = PMT/i Where PMT is the annual…

Q: FUTURE VALUE OF AN ANNUITY Find the future values of these ordinary annuities. Compounding occurs…

A: Future Value of Ordinary Annuity = Payment * ((1 + Interest Rate)^time - 1) / Interest RateFuture…

Q: If the present value of an ordinary, 6-year annuity is $9,400 and interest rates are 9.5 percent,…

A: Time value of money is the concept widely used by the management to determine the worth of money…

Q: A 5-year annuity has a series of payments 1, 2, 3, 2, 1 with the first payment made at time t = 0…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment. It is…

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: You are offered the choice of two annuities. A:  Receive $100 every year for the next ten years.…

A: Annuity A makes annual payment of $100 Annuity B makes $204 payments every two year.Thus at…

Q: You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective…

A: Present value of annuity = $10000 Interest rate (r) = 4% Annuity amount (A) = $500 Additional amount…

Q: What is the value today of a 15-year annuity that pays $630 per year? The annuity's first payment…

A: An annuity refers to a series of periodic payments exchanged in place of a lump sum payment. It is…

Q: a. What is the present value of a 3-year annuity of $110 if the discount rate is 5%? (Do not round…

A: Annuity means a contract in which the financial institution pays an amount that gives the fixed…

Q: Q. No. 02: Find the future value of the following annuities. The first payment in these annuities is…

A: Using Excel FV Function

Q: You are comparing two annuities with equal present values. The applicable discount rate is 8.75…

A: The question is related to the Present Value of Annuity due. It is calculated with the help of…

Q: Annuity X pays $115 at each year-end for 3 years. Annuity Y pays $105 at the beginning  of each year…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment.…

Q: 5) Consider a whole life annuity-due of 46,000 per year issued to a life age 65. Calculate the…

A: SOLUTIONGiven Informationlet's break down the informationWhole Life Annuity-Due: This is an annuity…

Q: (Present value of an annuity due) Determine the present value of an annuity due of $2,000 per year…

A: Present value of annuity due= Pmt*((1-(1+r)^-n)/r) *(1+r)