Find 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 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.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

See similar textbooks

Related questions

Q: If the future value of an ordinary, 4-year annuity is $1,000 and interest rates are 6 percent, what…

A: Formula to compute future value of annuity due:

Q: you have a 12-year annuity paying $496 quarterly in 10 years when interest is 6.65% compounded…

A: Number of annuity payments = Number of years * time period of Payment = Number of years * Quaterly…

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 4%…

A: Future value of an annuity: The worth of a sum of money that will be paid on a specified date in…

Q: given the situation , choose the correct formula to solve the problem: find the future value of an…

A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where P = Annuity amount i.e. $5000 r = rate of…

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 5%…

A: Since rate is 5% simple interest we will not be using the compounding functions.

Q: Find the future value of an annuity due with monthly payments of $100 that earns 4 1/4% interest…

A: Given that: Monthly payment = $100 Interest rate = 4.25% Time period = 2 years

Q: a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of…

A: In this we have to calculate present value FACTOR of annuity and from that we can calculate the…

Q: What is the present value of a $1,380 annuity due making payments for the next 5 years at an…

A: Present Value of annuity is that value which was invested by investor today after that investor will…

Q: Find the future value of an annuity of $1800 paid at the end of each year for 15 years, if interest…

A: Future value of an annuity:- It is the recurring payment that occurs at a specific date in the…

Q: Find the future and present value of a 5 year GHC 1,000.00 annuity if the rate of interest is 12%…

A: FV of Ordinary Annuity= PMT[(1+i)n-1/i] = 1000[(1+0.12)5-1/ 0.12] = 1000[1.7623-1/0.12] =…

Q: Solve by using formulas. (Round your answer to the nearest ce Present value (in $) of an annuity due…

A: Solution- Period Principle amount PV @ 5.7% Present value 1 1200 .94607 1135.284 2 1200…

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: Using the formula for an annuity, what would be the monthly payments on a 5-year fixed-rate car loan…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Find the future value of a 15-year annuity due with payments of $2,350 and an annual compound…

A: A series of future periodic payments which will be made either at the beginning of each period or at…

Q: Calculate the present value AND the future value of an annuity with a monthly cash flow of $100,…

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

Q: Calculate the future value of an ordinary annuity that pays $2,350 at 6% for 6 years. Also determine…

A: Annuity is the series of periodic payments. If the annuity payment is made at the end of the periods…

Q: If the present value of an ordinary, six-year annuity is $8,500 and the interest rates are 9.5…

A: Given: Resent value of Ordinary Annuity = $8500 Interest Rate = 9.5% Time =6 years So, the value of…

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

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: If you want to be paid from a 15 year ordinary annuity with a guaranteed rate of 4.277% compounded…

A: Annual payment (C) = $10,000 Period (n) = 15 Years rate (r) = 0.04277 (i.e. 4.277%) Present value or…

Q: Compare the two given annuity situations below. What conclusion can you draw from the information,…

A: The future value can be resulted on two bases: Regular annuity series payment or lump sum payment.…

Q: Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the…

A: Using excel PV function

Q: Use PVOA Table to find the present value of an ordinary annuity with an annual payout of P5,000 for…

A: Following is the answer to the question

Q: what's the future value of the same annuity due?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…

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

Q: Find the future value of the following ordinary annuity. Payments are made and interest is…

A: Future value of an ordinary annuity The value of the sum of future cash flows is called the future…

Q: Present value (in $) of an annuity due Annuity Payment Payment Frequency Time Period (years)…

A: An annuity contains a series of cash flows for a specific duration at equal time intervals. Each…

Q: Find the future value of an ordinary annuity of $5,000 semiannually for seven years at 6% annual…

A: The question gives the following information:

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…

A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5

Q: Find the future value of an annuity due of $1,500 semiannually for six years at 7% annual interest…

A: FV = PV * [(1 + i)n - 1] / iFV = PV * FVIFA(i,n) where, FV = Future Value of AnnuityPV =…

Q: If the future value of an ordinary, 7-year annuity is $7,900 and interest rates are 9.0 percent,…

A: Future value of an ordinary annuity = $7,900 Interest rate = 9%

Q: What is the future value of an annuity with annual cashflows of $4,000 for 38 years? The interest…

A: Future value of an annuity is the future value of stream of same annual cash flows which takes place…

Q: You are considering an annuity that costs $91,288 today. The annuity pays $6,500 a year at an annual…

A: The length of the annuity will depend upon the costs of the annuity, the periodic payment, and the…

Q: If the present value of an ordinary, 6-year annuity is $6400 and interest rates are 2.5 percent,…

A: Given: Present value (PV)= $ 6400 Interest rate (r)= 2.5% Number of years (n) = 6

Q: What is the present value of an ordinary annuity with annual payments of $660 at 9% annual interest…

A: In ordinary annuity, payment is due at the end of month. Present value of ordinary annuity can be…

Q: Find the future value for the annuity due with the given rate. payments of $400 for 9 years at0.32%…

A: Future value of Annuity due is the cash flows occur at the beginning of the period,and future value…

Q: Prepare a time diagram for the present value of a four-year ordinary annuity of $200. Assume an…

Q: Find the future value of an annuity due with an annual payment of $13,000 for three years at 5%…

A: Annuity means periodic payments and when periodic payments are at beginning of the period, the…

Q: If the future value of an ordinary, 7-year annuity is $9,900 and interest rates are 9.0 percent,…

A: Given, Future Value = $9,900 Interest Rate = 9.0% Term = 7 years Formula: Future value of annuity…

Q: A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is…

A: The question is based on the concept of perpetuity payment and concept of time value of money.Future…

Q: What is the present value of an ordinary annuity with annual payments of $670 at 7% annual interest…

A: Annuity is the periodic payments received or paid at regular intervals. Present value of annuity is…

Q: Find the monthly payment that will yield a future value of $183,000 at 8 1⁄4 % interest for…

A: Future value refers to the value of inflows that is going to be receive in future on particular…

Q: Use the appropriate formula to find how much you should deposit now at 7% interest, compounded…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: What is the present value of a 9-year annuity of $4,000 per period in which payments come at the…

A: Present value is a concept which states that amount of money today is worth more than the amount to…

Q: You expect to make equal payments of $ 9020.00 at the end of each of the next 6 years (ordinary…

A: Future value of ordinary annuity = Annual payment x [(1 + i)n - 1]/i

Q: What is the present value of a 10-year annuity of $5,250 per period in which payments come at the…

A: The annuity wherein the payment is done at the start of every period is called an annuity due. The…

Question

Find 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.)

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

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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
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 future value of an annuity due with an annual payment of $14,000 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.) How much was invested? How much interest was earned? (Round to the nearest cent as needed.)
Find the future value of an annuity due with an annual payment of $14,000 for three years at 4% 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.) How much was invested? S How much interest was earned? S (Round to the nearest cent as needed.) ←
Find the future value of an annuity due with an annual payment of $13,000 for three years at 4% annual interest using the simple interest formula. How much was invested? How much interest was earned?
Find the future value of an annuity due of $1,500 semiannually for six years at 7% annual interest compounded semiannually. What is the total investment? What is the interest? E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $. (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 annuity due of $650 semiannually for four years at 8% annual interest compounded semiannually. What is the total investment? What is the interest? E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $. (Round to the nearest cent as needed.)
What is the present value of a 10-year annuity of $5,250 per period in which payments come at the beginning of each period? The interest rate is 11 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table
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?
Use graphical approximation techniques or an equation solver to approximate the desired interest rate. A person makes annual payments of $1000 into an ordinary annuity. At the end of 5 years, the amount in the annuity is $ l5764.52. What annual nominal compounding rate has this annuity earned? Type the interest rate % (round to 2 decimal places)