Complete the following for the present value of an ordinary annuity. (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount of annuity expected 15,100 Payment Quarterly Time 5 years Interest rate 10 % Present value (amount needed now to invest to receive annuity)

Complete the following for the present value of an ordinary annuity. (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount of annuity expected 15,100 Payment Quarterly Time 5 years Interest rate 10 % Present value (amount needed now to invest to receive annuity)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Researching retirement savings online, you found an article from NewRetirement.com with…

A: The future value of any investment or payment is its compounded value which includes the earned…

Q: A 100 dollar cash payment in 20 years and a discount rate of 5 percent gives you a specific present…

A: The current value of the future expected cash flows at a given discount rate can be found by using…

Q: How much could NPV be reduced by a worst-case scenario of 25% reduction from the £3 million in…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: You are considering a project that will cost $50,000 to set up, and will pay out $18,000 1,2,3 and 4…

A: Unlevered Cost of Equity:The formula for the unlevered cost of equity (Re) is:Where:Rf = Risk-free…

Q: Xavier now has $500. How much would he have after 7 years if he leaves it invested at 5.4% with…

A: Future value is that amount which will be required to paid at some specified period of time. It…

Q: Amortization Schedule Consider a $25,000 loan to be repaid in equal installments at the end of each…

A: Amortization table represents the systematic presentation and calculation of loan repayment amount…

Q: If the return on stock A in year 1 was 11 %, in year 2 was 19 %, in year 3 was 4 % and in year 4 was…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: A company that manufactures amplified pressure transducers wishes to decide between the machines…

A: Here,YearVSDS0 $ -2,60,000.00 $ -2,15,000.001 $ -2,30,000.00 $ -2,35,000.002 $ -2,30,000.00 $…

Q: what will be the balance of her account after 30 more years assuming the same 8% interest

A: PRESENT VALUE:The concept of present value (PV) is a fundamental principle in finance, used to…

Q: You win the lottery and the State is going to pay you some payments every year, and a final payment…

A: Payment = 1,000,000Rate = 10%No. of years = 30

Q: After being drafted in the first round of the NFL draft, a star defensive end invests his signing…

A: We need use compound interest formula below to calculate final amount received at the time of…

Q: Pappy's potato has come up with a new product, the potato pet (they are freeze-dried to last…

A: NPV is net present value, as the name suggests It can be determined by the deduction of initial…

Q: A firm evaluates all of its projects by applying the NPV decision rule. A project under…

A: NPV means Net present value.It is a capital budgeting technique used for making investment…

Q: You are considering making a movie. The movie is expected to cost $10.4 million upfront and take a…

A: The payback period of a project refers to the measurement of the time it takes for the future cash…

Q: Leasing Cash Flows You work for a nuclear research laboratory that is contemplating leasing a…

A: Variables in the question:Cost of scanner=$6,300,000Life=6 yearsLease payment=$1,260,000Tax…

Q: City Garden Suppliers paid a $2 dividend yesterday. It is expected that the dividend will grow at 11…

A: The current stock price is equal to the sum of the present value of the future dividends.

Q: Assume that the Risk Free Rate in Europe is 3% and in the US is 1%. if the current exchange rate of…

A: Foreign exchange is that rate of exchange which helps one country do the trading in goods from other…

Q: Your opinion is that CSCO has an expected rate of return of 0.13. It has a beta of 1.3. The…

A: The capital asset pricing model is a linear regression model which takes into account the market…

Q: You just bought a motorcycle for $14,000. You plan to ride the motorcycle for two years, and then…

A: Variables in the question:Cost of motorcycle=$14,000Selling price=$8400Annual mileage=28000…

Q: Rowell Company spent $3 million two years ago to build a plant for a new project. It then decided…

A: Sunk cost: Expenses incurred that are not recoupable are known as sunk costs. In this instance, the…

Q: Find the ending balance for December in the below monthly loan amortization schedule.…

A: Loans are paid by fixed equal monthly installments that carry the payment for interest and payment…

Q: Metro bank offers one-year loans with a 9 percent stated rate, charges a ¼ percent loan origination…

A: Banks should take all factors into consideration before charging the interest rate to clients and…

Q: Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if…

A: The effective rate is the actual interest rate earned or paid on a financial. It takes into account…

Q: Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain…

A: The dividend discount model will be used here. As per the dividend discount model the value of a…

Q: Calculate the annualized holding period yield for 250 shares of a stock that was purchased for…

A: Annualized holding period return refers to the income earned by holding the asset throughout the…

Q: What is the effective annual rate of interest if $1300.00 grows to $1700.00 in two years compounded…

A: Effective annual rate refers to the rate of return which the investor effectively earns annually by…

Q: Assume that an investor buys 250 shares of stock at $33.78 per share, putting up a 45% mar a. What…

A: A margin account refers to a brokerage account where securities are bought by paying only a portion…

Q: Omni Consumer Products Co. is expected to generate a free cash flow (FCF) of $14,180.00 million this…

A: The value of the firm is equal to the present value of free cash flows of the firm in the future.…

Q: Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $14 per share and it has…

A: The debt-to-capital ratio refers to the measurement of the leverage associated with the company and…

Q: Problem 6-11 Calculating NPV Medavoy Company is considering a new project that complements its…

A: Initial cost = $4,200,000COGS and operating expenses = 30% of salesuseful life = 4 yearsTax rate =…

Q: Use the following information on states of the economy and stock returns to calculate the expected…

A: The uncertainty or fluctuation of investment results is referred to as risk and investments with a…

Q: Imagine a project with the initial investment of $35,000. The project is expected to last 10 years,…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: Suppose the firm can cut its requirements for working capital in half by using better inventory…

A: Net present value is determined by deducting the initial investment from the current value of cash…

Q: Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns,…

A: A portfolio is a mix of financial assets that a person, business, or other entity has, including…

Q: Based on the following information, what is the diversifiable proportion for the stock? Standard…

A: Stock's standard deviation: 0.5Standard deviation of the index: 0.1Correlation: 0.6

Q: The sustainable growth rate of a firm is best described as the A) minimum growth rate…

A: The sustainable growth rate is a growth rate that can continue under the current capital structure…

Q: A 3.10 percent coupon municipal bond has 15 years left to maturity and has a price quote of 96.45.…

A: A bond refers to an instrument that provides the issuing company with access to debt capital from…

Q: Consider the table given below to answer the following question. The long-run growth rate is…

A: Present value = (cash flow)/(1+return)^nPresent value in year 1 = = 11.61Present value in year 2 =…

Q: Given the information below for HooYah! Corporation, compute the expected share price at the end of…

A: The process of determining a company's stock or shares' intrinsic worth using a variety of financial…

Q: Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime +2.75%. Her current…

A: Prime rate = 3.5%Interest rate = Prime rate + 2.75% = 3.5% + 2.75% = 6.25%Balance Owing = $13250one…

Q: What is the future value in 2 years if you invest $100 at the beginning of each month for 12 months…

A: Future value of money includes the amount of deposit being made and the amount of compounded…

Q: Find the coupon rate of a 8-year corporate bond that trades at $1,145 with a yield to maturity of…

A: A bond is a kind of debt security issued by the government and private companies to the public for…

Q: John Freeman is investing $8,571 at the end of each year in a fund that earns 4% interest. In how…

A: An annuity refers to a cash flow series that occurs periodically and that are usually fixed and…

Q: ou are given the following information about X Corp for the 2022 fiscal year: What is the operating…

A: Operating cash flows (OCF) is the cash flows generated from normal operations- Selling and producing…

Q: Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

Q: You are buying a house for $290,000.00 with a downpayment of $29,000.00. The loan will be paid back…

A: Mortgage refers to a covered loan that is borrowed for the purchase or maintenance of a property…

Q: Record the yields of 6-month T-Bills, 10-year notes and 30-year bonds for December 2022 and for…

A: A yield curve is a graphical representation of the yields or interest rates on fixed-income…

Q: Gustav Foods spent $1 million to investigate a potential new store and obtain the permits to build…

A: Capital budgeting is a financial technique which helps in decision making on the basis of future…

Q: The Gamma Company is planning on investing in a new project. This project requires an initial…

A: IRR is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: Required: Fill in the table below for the following zero-coupon bonds, all of which have par values…

A: A zero coupon bond is a debt instrument which offers coupon payments throughout the life of the bond…

Question

Please answer fast i give you upvote.

Drill Problem 20-6 [LU 20-2 (1)]
Complete the following for the present value of an ordinary annuity. (Do not round intermediate
calculations. Round your answer to the nearest cent.)
Amount of
annuity expected
$
15,100
Payment
Quarterly
Time
5 years
Interest rate
10 %
Present value (amount
needed now to invest
to receive annuity)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Analysis

VIEW

Step 2: Calculation of PV of annuity

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Present value of an annuity Consider the following cases. Case ◄AUA- E Amount of annuity $ 12.000 55.000 700 140.000 22.500 Interest rate 12 20 5 10 Period (years) a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity, mu 9 7 b. Compare your findings in parts al 1) and a(2). All else being identical, which of annuity-ordinary or annuity due-is preferable? Explain why. Personal Finance Problem Tume value-Annuities - Marian Kirk wishes to select the better of two 10-year annuines, C and D. Annuity C is an ordinary annuity of $2,500 per year for 10 years. Annuity D is an annuity due of $2,200 per year for 10 years. delen future value of both annuities at the end of year 10, assuming that
FIN2230 Chapter 9 Assignment i 4 If you invest $14,500 per period for the following number of periods is received at the beginning of each year. (Annuity in advance) (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.) a. 9 years at 4 percent Future value $ b. 16 years at 12 percent Future value $ c. 20 periods at 15 percent Saved Future value
QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 6%/30 12.15812 13.76483 .17411 79.05819 $????????? invested annually at the end of the year. Required Computations: $12,648.91 $72,648.92 $33,3333.33 $11,927.43
QUESTION 14 What’s the interest rate of a 8-year, annual $3,500 annuity with present value of $20,000? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.) ANNUITY INTEREST RATE %
Use the following 8% interest factors 7 periods 8 periods 9 periods Select one: Present Value of Ordinary Annuity. a. $319,099 b. $267,687 C. $226,800 d. $172,398 5.2064 5.7466 6.2469 What will be the balance on September 1, 2029 in a fund which is accumulated by making $30,000 annual deposits each September 1 beginning in 2022, with the last deposit being made on September 1, 2027? The fund pays interest at 8% compounded annually. Future Value of Ordinary Annuity. 8.92280 10.63663 12.48756
8. Ordinary annuity payment. Fill in the missing annuity values in the following table for an ordinary annuity stream. Number of Payments or Years 5 20 30 10 Annual Interest Rate 9% 8% 7% 4% Future Value 0 $25,000.00 0 $ 96,048.86 Annuity Present Value $ 25.000.000 $200,000.00 0 Ordinary annuity peyment Fin the missing annuity values in the towing table for an ordinary annuty stream Number of Payments or years Annual interest Rate Future Valu 20 30 10 1% 0% 3 4S 1.0 $25.00000 A $5004586 Annuity $25 000 00 $200.000
eck my work mode : This shows what is correct or incorrect for the work you have completed so Drill Problem 13-3 (Algo) [LU 13-1 (2)] Complete the ordinary annuity as an annuity due (future value) for the following: (Please use Table.) (Do not round intermediate calculations. Round your answer to the nearest cent.) XAnswer is complete but not entirely correct. Amount of Payment payable Interest rate payment Years Annuity due 4,900 Annually 14 4. 89,630.36 X Drov %24 %24
QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 6%/30 12.15812 $33,3333.33 O $72,648.92 Present Value of ordinary annuity of $1 13.76483 Present value of $1 .17411 $????????? invested annually at the end of the year. Required Computations: O $12,648.91 O $11,927.43 Future Value of ordinary annuity of $1 79.05819
Future Value of an Annuity Calculate the future value. Present Value Interest Rate $0.00 10% monthly Payments $475.00 monthly Number of Payments per Year: PY= a. Determine the annuity type. O Ordinary Simple Annuity O Ordinary General Annuity O Simple Annuity Due O General Annuity Due b. Identify the following pieces of information to be used to calculate the future value of the annuity. Periodic Payment: PMT Total Number of Payments: N= Annual Interest Rate: r = Number of Compoundings per Year: CY c. Determine the future value of the annuity. Timing of Payment Years End 19 = Future Value ???
Problem 1-15 Calculating the Future Value of an Annuity [LO 4) What amount would you have at age 65 if you contributed $260 a month starting today at age 25 and you can earn 6 percent APR compounded monthly on your investment? If you were to delay this savings for 10 years when you're 35, how much would you then have at 65? (Do not round intermediate calculations. Round your final answer to 2 decimal places. Omit the "$" sign in your response.) Annual paynent at the end of 65 years, startine at 25 years Annual payment at the end of 65 years, starting at 35 years
1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Title Paragraph Styles PV = $ 6) Find the present value PV of the annuity account necessary to fund the withdrawal given. Hint [See Quick Example 3.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $600 per month for 15 years, if the account earns 6% per year and if there is to be $10,000 left in the annuity at the end of the 15 years PV = $ 7) Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $300,000 at 3%, paid out monthly for 14 years PMT = $ 8)
Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 5 8% 0 $213.22 ? 16 15% 0 $3,317.78 ? 29 4.5% 0 $674.57 ? 300 1% 0 $2,538.86 ? Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 5 8% 0 $213.22 $nothing (Round to the nearest cent.)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS