By approximately how much more would the present value of annuity due compared to the present value of ordinary annuity for $860 per quarter (quarterly payments) for 8 years with a nominal interest rate 9% APR compounded daily? There are 360 days in one year and four quarters in one year(Please show work)

Q: you have a 12-year annuity paying $496 quarterly in 10 years when interest is 6.65% compounded…

A: Number of annuity payments = Number of years * time period of Payment = Number of years * Quaterly…

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: The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment…

A: Periodic payment = 20,000 Interest Rate = 18%/12 = 1.5% per month N = 15 years i.e. 180 months…

Q: The payment is $

A: Present value illustrates the current value of a sum of money that will be received or paid in 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: of four $10,000 semi-annual payments will begin 5 years from now, with the first payment coming 5.5…

A: Value of annuity is the present value of annual payments to be received considering the interest…

Q: Find the future value of the following ordinary annuity. Payments are made and interest is…

A: STEP 1 When assuming a specific rate of return, or discount rate, the future value of an annuity is…

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: What is the present value of a regular $1,000 60-month annuity, if r is 6% APR compounded monthly?

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: difference between the sums of an annuity due and an ordinary annuity

A: Annuity due means where payments are made at the beginning of each period.  Ordinary annuity means…

Q: Find the present value of an ordinary annuity with deposits of 23,958 every 6 months for 4 years at…

A: The formula to compute present value:

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: periodic

A: To find the periodic withdrawals PMT, we can use the formula:   PMT = PV * (r * (1 + r)^n) / ((1 +…

Q: We receive 50 beginning of each month for a term of n-years. We wish to replace it with an annuity…

A: Annuity payments are the series of the uniform constant payments that are to be received at the end…

Q: what is the value of annuity?

A: Time value of money means that the amount of money received in the present period will have more…

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: What is the value today of a 15-year annuity that pays $710 a year? The annuity's first payment…

A: Period of the annuity = 15 yearsYearly payment = $710It is given that the annuity's first payment…

Q: What is the future value of a $590 annuity payment over four years if interest rates are 8 percent

A: An annuity refers to a series of cash flow that occurs on a periodic basis. Here $590 is occurring…

Q: Find the periodic withdrawals PMT for the given annuity account. HINT [See Quick Example 4.] (Assume…

A: An annuity is an equal series of periodic payments at a predetermined rate of interest for a…

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: What is the present value of an ordinary annuity of 2,200 per year for 15 years discounted back to…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Topic: General Annuity  1. How much money is accumulated if P3,900 is paid at the end of every…

A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…

Q: Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example…

A: Compound = Quarterly = 4Payment = p = $2300Time = t = 10 * 4 = 40Interest Rate = r = 7 / 4 = 1.75%

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: What is the present value of a $1,000 60-month annuity due, if r is 6% APR compounded monthly?

A: The time value of money is applied in the case of calculation for the present value of the annuity.…

Q: What is the future value (at the end of 10 years) of an annuity that pays $700 a quarter over 10…

A: Quarterly payment$700Interest rate6.6%Number of years10 years

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: Estimate the present value of an annuity if payments are $1000 monthly for 15 years and the account…

A: PVA=P×1-e-rter-1where,r= ratet= no  of years

Q: A thirty-year annuity has end - value of the annuity if i = 3 % - of month payments. The first year…

A: Step 1:It is given that, A thirty-year annuity has end of month payment and the first-year payment…

Q: What is the accumulated value after five years of payments of $20000 made at the beginning of each…

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

Q: Find the payment made by the ordinary annuity with the given present value. $242,665; quarterly…

A: Present value (P0) = $242,665 Quarterly period (n) = 60 (i.e. 15 years * 4) Quarterly interest rate…

Q: Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: PMTIt is the minimum value that is required to pay every period constantly by a person.