You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate is 8 percent. What is the future value? O a. $60,255.0 O b. $96,255.3 O c. $46,255.8 d. $50,255.2
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: A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly.…
A: Amount put in savings bank = $ 10,000 Interest Rate(r) = 16% compounded quarterly = 16/4 = 4% Total…
Q: . Your client deposits $5 million in a savings account that pays 5 percent per year compounded…
A: Following is the answer to the question
Q: What is the aggregate present value of $500 received at the end of each of the next three years,…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: The future value of $900 saved each year for 10 years at 8 percent. (Round your discount factor to 3…
A: C = Annual cash flow i.e. $900 r = Interest rate i.e. 0.08 or 8% n = Period i.e. 10 years FV =…
Q: The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at…
A: Perpetuity is a situation where a stream of Cashflow payments continues indefinitely or is an…
Q: Find the following values (compunding/discounting occurs annually): A. An initial $500 compounded…
A: A. Future value = Amount*(1+rate)^years Future value = $500*(1+6%)^1 Future value = $500 * 1.06…
Q: What is the present value of $2,100 to be received 14 years from now assuming a discount rate of…
A: Given information: Future value of amount is $2,100 Number of years is 14 Discount rate is 3.7% for…
Q: If money is worth 3 ½% compounded monthly, find the compound discount if 12,200 is discounted for 2…
A: Here, Amount is 12,200 Time Period is 2 years and 11 months Time Period in Months will be: =24…
Q: What is the value today of receiving six annual payments of $400,000, beginning one year from now,…
A: Using the scientific calculator, we can calculate the NPV of the cash flows. Enter the value as…
Q: You are golng to receive three perpetuities. Perpetulty 1 will pay $450 each year, with the first…
A: There are 3 annuities. We need to compute the present value of these annuities first and then we can…
Q: What is the present value of a $500 payment made in four years when the discount rate is 8 percent?
A: We need to calculate the present value from below given details in this question: Future value =…
Q: What is the present value of $452,000 to be received in 6 years from today. Assume a per annum…
A: Compound interest is one of the form of interest in which interest is charged on both principal as…
Q: A 16-year annuity pays $1,900 per month, and payments are made at the end of each month. The…
A: The question is based on the concept of present value of future annuity payments . Annuity payments…
Q: Find the present value of $4,600 under each of the following rates and periods: (Round your final…
A: Present value is the worth of the amount in present times that is expected to be received in future…
Q: An insurance policy provides a benefit of $21,500 twenty two years from now. Alternatively, the…
A: Amount to received after 22 years 21,500 Payment per year is $590
Q: What is the future value of $200 received today and deposited at 8 percent compounded semi annually…
A: Formulas: Future value = Amount *(1+rate)^years
Q: The present value of $500 to be received at the end of each year for seven years at a discount rate…
A: Computation of present value:
Q: Čalculate the compounded future value at EOY 20 of 20 annual payments of $5,000 each into a savings…
A: Future Value is the value of current investments at a certain future date at the assumed…
Q: Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is…
A:
Q: Suppose you are a beneficiary designated to immediately receive P8674 each year for 10 years,…
A: Annuity means a series of annual payments are being made or received. Annuity can be ordinary…
Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…
A: Present value is the sum of discount value of all future cash flows.
Q: Two annuities have equal present values and an applicable discount rate of 7 percent. One annuity…
A: Given, discount rate = 7 percent
Q: If (P) dollars are invested at the end of each year in an annuity that bears interest at an annual…
A: The future value of a regular annuity amount can determine with the help of the future value of the…
Q: The present value of $500 to be received at the beginning of each year for seven years ata discount…
A: The formula to compute present value annuity due is as follows:
Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…
A: Time Period = 20 Years Interest rate = 5% Present Value = $180,000
Q: What is the present value of a $1,500 payment made in nine years when the discount rate is 8…
A: In this question we are required to compute the present value from following details: Annual payment…
Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…
A: Information Provided: Term (number of payments) = 20 Payment amount = $5000 Interest rate = 6%
Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…
A: GIVEN, PRESENT VALUE=$1000 future value=$1276.30 n=5
Q: Calculate the present value of Rs.800 a) Received at the end of five years b) Received one year…
A: Note: It is a situation where multiple sub-parts have been asked, so we are allowed to solve the…
Q: A sum of $ 10, 000 is used to buy a deferred perpetuity-due paying $671.69 every six months forever.…
A: The present value of a perpetual annuity is the present worth of a cash flow that will continue till…
Q: What is the present value of the following payment stream, discounted at 8% annually: $1,000 at the…
A: The present value concept of the time value of money states the current value of money that is being…
Q: Dind the future value of $12,308 deposited at 10% compunded quarterly for 3 years. Round your answer…
A: Given that, Present Value (PV)=$12,308 Duration(n)=3*4=12 periods Rate of interest(i)=10%/4=2.5% or…
Q: Find the present values of these ordinary annuities. Discounting occurs once a year. $400 per year…
A: It is essential for the management to determine the present value of all the future cash flows while…
Q: What is the present value of the following annuities? 70 a year for 3 -years discounted back to the…
A: Annuity referes to the payments made at regular interval. It could be ordinary annuity when payments…
Q: What is the value today of receiving five annual payments of $500,000, beginning one year from now,…
A: Present value = Cash Flow 1/(1 + r)1 + Cash flow 2/(1 + r)2 + Cash Flow 3/(1 + r)3 + Cash flow 4/(1…
Q: Find the present value of an annuity due that pays $3000 at the beginning of each quarter for the…
A: Annuity due: Annuity due makes payments at the beginning of the year. Ordinary annuity: Ordinary…
Q: ind the amount and present value of an annuity due of 125 every quarter for 9 years and 6 months, if…
A: In this we have to find out the present value of annuity.
Q: Find the present value of the following annuities: 100 starting at time 8 and increasing by 100…
A: Present value of a future amount With future value (FV), periodic interest rate (r) and period (n),…
Q: What is the present value of a $750 payment made in three years when the discount rate is 5 percent?
A: In this question we need to compute the present value of $750 payment in three years.
Q: A company offer annual payments of $1675 at the end of each year for the next FIVE years. a) What…
A: Annuity is a concept of regular equal payments made at equal interval of time. It is used to…
Q: You are comparing two annuities with equal present values. The applicable discount rate is 6.65…
A: The first annuity is an annuity due as its payments starts on the first day of each year. The second…
Q: If you deposit $2600 in order to get annual revenues each year up to 7 years, at a rate of return…
A: Capital recovery factor is annuity of the investment made today over the period of time at the given…
Q: What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year?…
A: End of Year payments =850 Nominal interest rate = 8% Present value of perpetuity=Equal cash flow…
Q: Find the present values of these ordinary annuities. Discounting occurs once a year. $400 per…
A: Annual payment (C) = $ 400 Annual interest rate (R) = 10% Period (N) = 10 Years
Q: Determine the present value of an ordinary annuity paid annually for 25 years if payments are 1.200$…
A: Ordinary Annuity is one of the two classification of annuities where first annuity transaction is…
Q: You expect to receive P1,000 at the END of each of the next 3 years. You will deposit these payments…
A: Following is the computation of Future value at the end of the third year
Q: A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of this…
A: Future of Annuity Due = Annuity * [ { ( 1 + Quarterly rate )Number of quarters - 1 } / Quarterly…
Step by step
Solved in 2 steps
- 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 annuityWhat is the present value of an ordinary annuity that pays $1,000 per year for 4 years, assuming the annual discount rate is 7 percent? a. $3,051.58 b. $762.90 c. $3,624.32 d. $3,738.32 e. $3,387.21For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years. The compound annual return implied by this arrangement is closest to Select one: a. 10.5% b. 9.5% c. 10% d. 9%
- Find the present values of these ordinary annuities.Discounting occurs once a year.a. $600 per year for 12 years at 8%b. $300 per year for 6 years at 4%c. $500 per year for 6 years at 0%d. Rework parts a, b, and c assuming they are annuities due.What's the future value of $1,300 after 5 years if the appropriate interest rate is 6%, compounded monthly? Select one: a. $1,683.36 b. $1,928.86 c. $1,385.27 d. $1,753.51 e. $1,841.18In one year, you expect to receive $250. From year 2 forward, you expect to receive 3% more than you received the prior year. If the discount rate is 9%, what is the present value of these payments? $5,566.67 $3,773.67 $4,166.67 $1,967.67
- The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at the end of every other year, starting at year 2 (that is, payments happen at year 2, 4, 6, ...)?Find the present values of these ordinary annuities. Discounting occurs once a year. a. $600 per year for 12 years at 8% b. $300 per year for 6 years at 4% c. $500 per year for 6 years at 0% d. Rework parts a, b, and c assuming they are annuities due.You are given the following about two annuities-immediate: Annuity A pays 300 at the end of each year for 18 years. d ofc Annuity B pays 399.865 at the end of each year for 9 years. At an annual effective rate of interest i, the PV of both annuities are equal. Calculate i. Ponible Answers 12% 11% C 10% D 13% 14%
- What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The appropriate interest rate is 7 percent. Answers: a. $10,000 b. $6,452 c. $20,423.74 d. $4,657 An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? Answers: a. $1,134 b. $5,324 c. $2,345.50 d. $2,569.77 *PLEASE SHOW ALL STEPS! CANNOT USE EXCEL TO SOLVE! CAN USE CALCULATOR FUNCTIONS!!4. You will receive annual payments of $4,000 at the end of each year for ten years (10 payments). The first payment will be received in year 3. What is the present value (at t=0) of these payments if the discount rate is 9 percent.What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year? Use a nominal rate of 8.00%. O $10,625 O $10,952 O $10,241 O $9,133 O $9,004