Determine the present worth of annuity consisting of 6 payments of 120,000 each payment are made at the beginning of each year. Money is worth to 15% compounded annually. What is the presenr worth value? A. 521,258.61 B. 520,258.61 C. 523,258.61

Determine the present worth of annuity consisting of 6 payments of 120,000 each payment are made at the beginning of each year. Money is worth to 15% compounded annually. What is the presenr worth value? A. 521,258.61 B. 520,258.61 C. 523,258.61

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Related questions

Q: The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent…

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

Q: Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12%…

A: Data given:: A=P1000 i=12%/2 = 6% Period=n= 20 Formula to be used : F=A * ((1+i%)n -1) / i%

Q: What is the present value of an annuity of 19 annual payments where the first payment is in twelve…

A: N = 19 First payment in twelve years Annuity Payment = 1200 Assumption: Interest Rate = 14%

Q: Find the value of an ordinary annuity if payments are made in the amount of R and interest is…

A: Annuity means regular payments or receipt of the same amount at the same interval period. Future…

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: Find the present value and the amount of 9,000 ordinary annuity payable quarterly for 8 years if the…

A: An ordinary annuity is a series of equal payments made at the end of consecutive periods for a fixed…

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

A: To find the present value of ordinary annuity, we will use the following formula:PV of ordinary…

Q: Compute for the amount and the present value of an ordinary annuity of 12 annual payments of Php…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity eaming 9.52%…

A: Using excel

Q: If money is worth 8% compounded quarter ly, determine tne present value of the following: a. An…

A: Discounting is a technique which is used to compute the PV of future cashflows by using an…

Q: $11,000 is to be paid at the end of each year in a legal settlement. The payments end after 9 years.…

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: Find the present value of an annuity if the first monthly payment ₱6,200 is made at the end of 4…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…

Q: In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded…

A: Capital Recovery Factor is referred as a ratio which gives one an idea about the present value of an…

Q: The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the…

A: The present value of annuity refers to the current value of future annuity payments to be paid at a…

Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…

Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: end of the 10 year period? 3)An annuity is created by depositing $4,500 at the end of each quarter…

A: Future Value of Annuity: It represents the future worth of the present stream of cash flows. It can…

Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Determine the present value of an annuity for 15 years if the interest rate is 8.8% per annum…

A: An annuity is a constant stream of cash flows. In this case the cash flow amount is $72.50 in each…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

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: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: In this question we need to compute the present value of the following annuity streams.

Q: Find the amount of an annuity of 440 payable every three months for 15 years and 3 months, if money…

A: The amount of annuity can be calculated using the future value of annuity formula.

Q: WHAT IS THE ACCUMULATED AMOUNT OF THE FIVE-YEAR ANNUITY PAYING P6,000.00 AT THE END OF EACH YEAR,…

A: Annuity is a stream of cashflows which may be constant, growing, increasing, declining or…

Q: Find the present value of an annuity P20,000 payable annually for 8 years, with the first payment at…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: IF A PERPETUITY IS WORTH P 500,600.00 AND WITH AN INTEREST OF 16.25%, WHAT IS THE ANNUITY? IF MONEY…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: Find the present value of a annuity of P4,500.00 every 2 months for 7 years that is deffered 3 years…

A: Convert 6% compounded quarterly to its equivalent interest rate for bimonthly interval. Here, 'R'…

Q: Money is worth 12% compounded quarterly. What is the future value of the annuity payir arterly for…

A: Future value of money grows with interest rate and period of deposit and while present value…

Q: Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of…

Q: a. Find the amount and present value of an annuity of 440 payable every three months for 15 years…

A: Quarterly payment (P)= 440 Annual interest rate = 5.50% Quarterly interest rate (R) = 5.50%/4 =…

Q: Consider an annual annuity composed by 10 payments equal to 125 € in the first 3 years and 150 € in…

A: Annuity is defined as a regular payment made at fixed interval. In this case an annuity of 125 € is…

Q: Determine the amount of money that must be invested now (time 0) at 6% nominal interest, compounded…

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

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: If money is worth 3.75% compounded quarterly, find the present value and the amount of an annuity…

A: Compounding is a way to find the PV of future amount or series of payments. This is also applies for…

Q: Determine the present worth and the accumulated amount annuity consisting of payment of P120 000…

A: Present worth analysis is an analysis in which we convert all the cash flows to present worth using…

Q: The future value of an ordinary annuity of $2,000 each year for 10 years, deposited at 12%, is:

A: The future value of ordinary annuity is calculated when the payments are made at end of the year. In…

Q: Find the present value of an annuity of P20,000 payable annually for 8 years, with the first payment…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: uppose the amount of an ordinary annuity that consists of 10 yearly payments of 150$ , provided that…

A: An ordinary annuity is a series of equal payments made at the end of consecutive periods over a…

Q: Find the amount and present value of an annuity of 440 payable every three months for 15 years and 3…

A: Quarterly payment = 440 Annual interest rate = 5.50% Quarterly interest rate = 5.50%/4 = 1.375%…

Q: Compute for the amount of an ordinary annuity of 12 annual payments of 35, 000 each if money is…

A: An annuity is a promise to pay or receive a fixed amount every year for a specified period. Deferred…

Q: suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest…

A: Annual saving (A) = $2700 r = 8% compounded continuously n = 25 years

Q: Find the future value of each annuity due. Then determine how much of this value is from…

A: Annuity Due occurs when stream of payments starts from current date and because of which, each…

Q: 5. Determine the accumulated amount of an annuity consisting of 6 payments of P120, 000 each, the…

A: Annuity Amount (PMT) is P120,000 No. of Payments (n) is 6 Interest Rate (r) is 15% Annuity Type is…

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 12% annually if…

A: A perpetuity is an annuity that gives out payments but has no maturity period.

Q: Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of…

A: Annual Payments = 120,000 N = 6 Beginning of period payments Annual Compounding Interest Rate = 15%…

Q: What is the present value of a perpetuity with payments starting one year from now. The first…

A: A perpetuity is a type of security that pays a constant stream of fixed cash flows for an infinite…

Q: Determine the present worth and the accumulated amount of an annuity consisting of six payments of…

A: Here, Annuity Payment is $120,000 Interest Rate is 13% Compounding Period is Semi-Annual i.e. 2…

Q: present value of a perpetuity with annual cash flows of $1,000 each year is $15,000. What is the…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Question

Video Video

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

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 annuity
Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?
3.) Find the present value of an annuity in perpetuity where payments are $1, 000 at the beginning of the first year, third year, etc. and payments are $1, 500 at the beginning of the second year, fourth year, etc. Here effective annual interest is 5%
Find the value of an ordinary annuity if payments are made in the amount of R and interest is compounded as given. R=16000 4.4% interest compounded quarterly for 15 years future value of annuity And the amount from contributions and the amount from interest.
suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest per year, componded continously, part a: determined the accumuluated savings in this account at teh end of 25 yrs. part b: in part a,suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25. The annuity will extend from teh EOY 26 to EOY 33, what is the value of this annuity if teh interest rate and componding frquency in part a do not change
How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.48
What is the present value of an annuity consisting of payments of $800 every month for 8 years, with the first cash flow occurring in one month, if the interest rate is 7% p.a., compounded monthly? Select one: a. $4889.84 b. $4777.04 c. $58678.05 d. $58649.67
Description Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of P120,000 each. The payment are made at the beginning of each year and money is worth 15% Compounded annually.
How much more is a perpetuity of $6,000 worth than an annuity of the same amount for 10 years? Assume an interest rate of 9% and cash flows at the end of each year. a. $99,212 b. $34,740 c. $58,097 d. $28,161
g.What is the accumulated amount of five-year annuity payingP6,000 at the end of each year, with interest at 15%compounded annually? include a non-excel cash flow
Find the present value of an annuity if the first monthly payment ₱6,200 is made at the end of 4 years for 9 years. Money is worth 12.6% compounded monthly. a. ₱241,896.53 b. ₱244,436.45 c. ₱245,651.86 d. ₱399,367.66
Find the amount and present value of an annuity of 440 payable every three months for 15 years and 3 months, if money is worth 5 ½%, m=4