Eric Coleman invested $2500 four times a year in an annuity due at Southern Trust Company for a period of 4 years at an interest rate of 12% compounded quarterly. Using the ordinary annulty table, calculate the total value of the annuity due at the end of the 4-year period.

Q: What is the present value of  Nagpada's ordinary annuity of 10-years whose cash flows are $1,500 per…

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

Q: Vusa has invested $420000 in an annuity that pays interest at the rate of 3.6% per annum,…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: On January 1, Year 1, Philip Holding invests $40,000 in an annuity to provide 8 equal semi-annual…

A: Annuities are series of uniform and equal payments that are paid based on the time value of money.

Q: Maria took out a loan for $7900 that charges an annual interest rate of 8.8% compounded quarterly.…

A: n=4 r=8.8/4/100=0.022 present value=7900

Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: Annual receipt (C) = P 35,000 Number of annual receipts (n) = 18 Interest rate (r) = 3%

Q: At the beginning of each month, Francisco deposits $7,500 into an investment account. If the…

A: Part 2: Explanation:Step 1: Calculate the number of months in 3 years.3 years = 3 * 12 months = 36…

Q: On January 1, Year 1, Philip Holding invests $40,000 in an annuity to provide 8 equal semi-annual…

A: Annuities are series of uniform and equal payments that are paid based on the time value of money.

Q: Andy invested $850 semi-annually for eight years at 6%, compounded semi-annually. What is the value…

A: Amount invested = $850 Time Period = 8 Years Interest Rate = 6%

Q: Calculate the present value of the following annuity streams: a. $8,000 received each year for five…

A: The difference between an ordinary annuity and an annuity due is that ordinary annuity payments are…

Q: An architect is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: When the payment is received at the beginning of a period it is called as annuity due. In the given…

Q: On January 1, Year 1, Philip Holding invests $40,000 in an annuity to provide 8 equal semi-annual…

A: The annuity refers to the series of systematic and regular repayments or withdrawals from the…

Q: Regular contributions of $200 are made at the end of each month for five years into a savings…

A: An ordinary annuity involves regular contributions or payments made at the end of each period (in…

Q: Donald Turner invested $4500 twice a year in an annuity due at Capital Appreciation, Inc. for a…

A: Periodic deposit (D) = $4500 n = 7 years = 14 deposits r = 4% per annum = 2% per period

Q: Omega Inc. purchased a deffered annuity which pays $23,000 at the beginning of every three months…

A: An annuity is a stream of cash flows that occurs at equal time intervals. This series of cash flows…

Q: Ashton invested $8450 for five years in his savings account that was earning 3.2% compounded…

A: To calculate the future value we will use the below formula   Future value = P*(1+r)n Where Invested…

Q: A deposit of $20,000 is placed in his scholarship fond that earns an annual interest rate of four.…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: An annuity-pays 18,000 per year for five years. The annual interest rate is 6%. Find the present…

A: i) Determine the present value of the annuity using the Excel PV function with the following inputs:…

Q: 9%, Monthly payments of $200 are paid into an annuity beginning on January 31, with a yearly…

A: Annuity is a series of cash follows which occur on a regular interval for a defined period. Ordinary…

Q: Todd Ring plans to deposit $600 at the end of every 6 months for the next 10 years at 12% interest…

A: The future value of the annuity is calculated when it is to be known how much amount one will…

Q: Diane invested $4500 in an account that pays an annual interest rate of 3.7%, compounded monthly.…

A: Amount in the account after one year= $ 4669.35 Effective rate of interest = 3.76%

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: Jones can deposit $5,000 at the end of each six-month period for the next 12 years and earn interest…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: James borrows $280 000 and repays the loan in equal fortnightly repayments of $1250 over 20 years.…

A: The time value of money is a concept used to compute and analyze the present worth of the future…

Q: You deposit $9,300 in a 2-year certificate of deposit (CD) earning 2.4% annual interest compounded…

A: We first need to determine the effective annual rate for both the interest rates using the formula…

Q: withdrawal is to be made 5 years from now, how long will it take for the fund to be depleted?

A: Future Value: It represents the compounded amount of the present sum invested over a period of…

Q: Jaime Bickers invests $4000 at the end of each semiannual period for 8 years. His financial advisor…

A: Calculate the future value as follows:

Q: ▪mputing Annuity Amounts to a Debt Re nd n January 1, Chang Inc. establishes a bor nd (a bond…

A: Future of the annuity is required to calculate the sinking fund amount and sinking fund is the…

Q: Betty Adams invested 3,000 pesos four times a year in an annuity due at Hicks and Marston…

A: The value of annuity can be calculated as the future value of ordinary annuity

Q: Natalia makes deposits in an account earning 6% annual effective at the beginning of each quarter…

A: The objective of the question is to calculate the value of P, which is the increase in the quarterly…

Q: Adriana Grandioso has made beginning-of-year deposits into an investment account for the past 21…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: Matt borrowed $23,000 at 5.5% compounded semi-annually. If the loan is to be repaid in equal…

A: Loan is contract between lender and borrower where lender provide funds to borrower that is repaid…

Q: An annuity has $159 beginning of month deposits for 10 years with a rate of interest of 6%…

A: An annuity due is a condition where the contribution is made at beginning of the period for a…

Q: Abdullah deposits OMR 1200 at the end of every year for 20 years and the deposit earns a compound…

A: Future value = Yearly deposit * future value annuity factor @5.33% for 20 years

Q: Anthony plans to deposit $500,000 now and $10,000 every 6 months for 5 years into an account.…

A: Deposit now (D) = $500000 Semiannual deposit (A) = $10000 n = 5 years = 10 semiannual deposits…

Q: On September 8, Bert Sarkis started an annuity. He arranged to have $60 deducted from his…

A: (a)Deduction amount at month-end paycheck, A = $60 Interest rate = 7% compounded monthlyInterest…

Q: Two annuities are available for purchase that your client has identified. The first annuity pays…

A: It is a case of comparison of an annuity of payments. The decision is based on the net present value…

Q: adam made an investment of $33,000. The investment pays 7.75% p.a. compounded quarterly. He will be…

A: Amount of investment made is $33,000 Interest rate is 7.75% P.A. Compounded Quaterly   To Find:…

Q: ason Horton works for Chevron as a welder on offshore drilling rigs. His retirement plan…

A: a) Calculate the future value of the annuity as shown below: Hence, the future value of the annuity…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.