Calculate the future value of an ordinary annuity that pays $2,350 at 6% for 6 years. Also determine the future value if this were a prepayment annuity.
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A: The formula to compute present value of annuity as follows:
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A: Given that: Monthly payment = $100 Interest rate = 4.25% Time period = 2 years
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A: The question can be solved as follows:
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A: Annual payment (C) = $2000 Period (n) = 16 years Interest rate (r) = 0.05 or 5% Present value = ?…
Q: what is the present value of the perpetuity?
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A: Present Value of annuity is that value which was invested by investor today after that investor will…
Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…
A:
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A: Present value is calculated by discounting all the future cashflows
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A: Computation:
Q: Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)
A: Ordinary Annuity: When the annuity payments are paid at the end of the period, such annuity payments…
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A: Using excel PV function
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A: Following is the answer to the question
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A: Required :The discounted value of these cash flows.
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A: Future value of an ordinary annuity The value of the sum of future cash flows is called the future…
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A: The question gives the following information:
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A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…
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A: Perpetuity refers to equalized stream of payments that are either paid or received for indefinite…
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A: The discounted value is present value of future cash receipts
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A: An ordinary annuity is an annuity where the periodic payment occurs at the end of the period.
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Q: Assume that you make monthly payments of $625 into an ordinary annuity paying 4% compounded monthly.…
A: Using excel FV function
Q: Find the future value of an annuity due with payments of $340 each year for 4 years at 7%,…
A: Annuity Annuity Due is were equal periodic payment or receipts is made at same interval at…
Q: What's the future value of a 7 percent, 5-year ordinary annuity that pays $300 each year?
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A: Excel Spreadsheet:
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A: Future value of ordinary annuity = Annual payment x [(1 + i)n - 1]/i
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A: There are various payment methods uses by an individual in terms of making payment to its investment…
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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 annuityFind the future value of an annuity due with an annual payment of $9,000 for two years at 7.5% annual interest using the simple interest formula. Find the total amount invested. Find the interest. What is the future value of the annuity? (Round to the nearest cent as needed.)Find the future value of the following ordinary annuity. Payments are made and interest is compounded as given. R = $1,000, 5% interest compounded monthly for 6 years What is the future value of the ordinary annuity? (Round to the nearest dollar as needed.)
- Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=16,000; 4.3% interest compounded quarterly for 11 years. The future value of the ordinary annuity is $__ (Round to the nearest cent as needed.) The amount from contributions is $__ and the amount from interest is $__. (Round to the nearest cent as needed.)Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if interest is earned at a rate of 5%, compounded annual. What is the future value?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 future value of an annuity due with an annual payment of $13,000 for three years at 5% annual interest using the simple interest formula. How much was invested? How much interest was earned? What is the future value of the annuity? (Round to the nearest cent as needed.)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?Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=14,000; 4.6% interest compounded quarterly for 10 years. The future value of the ordinary annuity is $ (Round to the nearest cent as needed.) The amount from contributions is $and the amount from interest is $(Round to the nearest cent as needed.)
- a) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of the annuity. Show your work in detail.Find the future value of the following ordinary annuity. Payments are made and interest is compounded as given. R = $500, 7% interest compounded quarterly for 8 years What is the future value of the ordinary annuity? $ (Round to the nearest dollar as needed.)You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective interest rate i = .04. The annuity pays $500 at the end of each year and an additional $X at the beginning of years 6 through 12. Find X.