At the end of each month for the next ten years you will receive cash flows of $50.  If the appropriate discount rate is 7.2%, compounded monthly (i.e., the APR is 7.2%), how much would you pay for the

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: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) $130/month…

A: Annuity payment = $130No of years = 11 years or 11 * 12 = 132 monthsInterest rate = i = 5% per year…

Q: Find the payment that should be used for the annuity due whose future value is given. Assume that…

A: Given,  The future value of annuity due is $15,000 Quarterly payments are made for 12 years Interest…

Q: Find the monthly payment that will yield the future value of $260,000 using an ordinary annuity at…

A: Information Provided: Future value = $260,000 Interest rate = 11% Period = 41 years

Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.

A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: dymer increase by 2% for the next year. Find the present value of this annuity if the initial…

A: The present value of annuity includes the value of annuities discounted at the rate of interest rate…

Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…

A:

Q: A monthly perpetuity of $100 will start 6 months from today.  If the discount rate is 6% APR…

A: Interest rate = 6% p.a. compounding monthly I.e. 6/12 = 0.5% for one month Monthly payment amount =…

Q: Find the future value of the annuity due. Payments of $700 per quarter for 6 years at 5% compounded…

A: Annuity refers to a periodic stream of cash flow occurring in each period (be it a month or a…

Q: ity

A: of the annuity has to be found out,  The payment is made in year 4 up to the 12th year, (9 times)…

Q: The monthly compounded interest rate is 10%. What is the effective annual interest rate and what is…

A: Compound = n = Quarterly = 4Interest rate = r = 10%Cash Flow = cf = $100Time = t = 3 Years

Q: What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?

A: Given: Rate: 7% Annuity =300      Number of years = 5

Q: A 20-year annuity pays $1,500 monthly, and payments are made at the end of each month. If the…

A: Monthly payments = $1500Period = 20 yearsInterest rate :First 10 years = 6.25%Next 10 years = 5.50%

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: Find the present value of an annuity with monthly payments of $8,333.33, at an interest rate of 5.5%…

A: Present value of annuity cash flow = whereA = Periodical cash flow = monthly payment = $8,333.33i =…

Q: Find the future value of the annuity due. Payments of $500 per quarter for 3 years at 7% compounded…

A: FV = Future value? C = Quarterly cash flow i.e. $500 r = Quarterly Interest rate i.e. 0.0175 (0.07 /…

Q: Annuity will pay $200 at the end of each of the next 10 years and $600 at the end of each of the…

A: The Present Value of Annuity (PVA) is a financial concept that calculates the current worth of a…

Q: Compare the two given annuity situations below. What conclusion can you draw from the information,…

A: The future value can be resulted on two bases: Regular annuity series payment or lump sum payment.…

Q: Calculate the present value of a 30-year annuity with annual payments which pays an initial payment…

A: Computation:

Q: Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the…

A: Using excel PV function

Q: A 20-year annuity pays $1,200 per month, and payments are made at the end of each month. The…

A: The concept of time value of money will be used and applied here.   An annuity is a stream of…

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: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…

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

Q: annual payments of $1,500 per year, at a disco

A: PV = PMT * [(1 - (1 + r)^(-n)) / r]Where:PV is the present value of the annuityPMT is the amount of…

Q: How much should be deposited into an account to set up an annuitv that will provide equal payments…

A: Present Value: Given a certain rate of return, the present value (PV) of a future amount of money or…

Q: What iS the fair market price today for an annuity that pays you $350 at the beginning of each month…

A: Annuity refers to the series of payment at regular interval for certain period.

Q: what is the value of this annuity five years from now? What is the value three years from now? What…

A: An annuity is a series of payments which starts from 1st period and can end at any period, annuity…

Q: You are given an annuity-immediate paying 14 for 14 years, then increasing by one per year for 8…

A: An annuity's present value is the current value of all of its future cash flows discounted, using a…

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: Calculate the present value of the annuity. (Round your answer to the nearest cent.) $1800 monthly…

A: The time worth of cash (TVM) is the idea that an amount of cash is worth more now than a similar…

Q: what is the value of the annuity today

A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…

Q: Find the payment that should be used for the annuity due whose future value is given. Assume that…

A: The annuity is a set of payments made in exchange for a lump sum payment. It is widely used in…

Q: Calculate the present value of annuity with 30 annual payment which pays an initial payment of…

A: Present value is the equivalent value today of the future money to be received in the future based…

Q: Use the appropriate formula to find how much you should deposit now at 7% interest, compounded…

A: Annual payment (C) = $1,250 Interest rate (r) = 0.07 period (n) = 15 Years Present value or amount…