Q: What is the value of an annuity at the end of 10years if $1,000 is deposited every six months into…
A: Introduction: Future value of an ordinary annuity can be defined as a metric which helps to know how…
Q: Calculate the future value of an ordinary annuity consisting of annually payments of $1,500 for 6…
A: An ordinary annuity is that annuity in which payments are made at the end of each period.
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: 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: What is the present value of an annuity due that promises $20,000 per year for 20 years if the…
A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…
Q: After carefully exmaining your budget, you determine you can manage to set aside $370 per year. You…
A: The future value concept can be used to derive the future value of a present sum or the future value…
Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…
A: Future value of an annuity is $55000 Annual interest rate is 5.5% per year compounded monthly Time…
Q: An investment is expected to result in equal payments of $9940.00 at the end of each quarter for the…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: What is the future value four years from now of each of the following cash-flow streams if money can…
A: Future value is the worth of a certain deposit made today at a specific time in future.
Q: Find the present value of an annuity of $ 365.00 per month for 26 years at a rate of 3 1/4% interest…
A: Monthly payment (P) = $ 365 Period = 26 Years Number of monthly payments (n) = 26*12 = 312 Annual…
Q: A perpetuity with a present value of $25,000 today yields cash flows of $100 per month. The first…
A: Perpetuity involves receiving cash flow for an infinite period of time. Perpetuity calculation can…
Q: of four $10,000 semi-annual payments will begin 5 years from now, with the first payment coming 5.5…
A: Value of annuity is the present value of annual payments to be received considering the interest…
Q: If $82,000 is invested in an annuity that earns 5.8%, compounded quarterly, what payments will it…
A: Present value (PV) of the investment is $82,000, which would earn an interest rate (r) of 5.8%…
Q: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…
A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…
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: The present value of an ordinary annuity is used to compute the amount of a single deposit to be…
A: PV: It is the current worth of cash flows that are expected to happen in the future.
Q: present value of an annuity is 16,950. Quarterly payments of 369 are made from16,950 that is…
A: In this we have to calculate the present value factor of annuity to get number of years.
Q: A perpetuity will make its first payment in 20 years. The first payment will be $5,000, and future…
A: Perpetuity means a series of infinite numbers of payments of the same size occurs in an equal…
Q: Suppose an annuity at 5% compounded semi-annually will pay $5000 at the end of each 6-month period…
A: The annuity refers to the series of regular payments that last for a specific period of time. The…
Q: How much money do you need now to set up a perpetuity that pays $2,000 at the end of each quarter if…
A: In finance, there are two types of series of cash flows, i.e., an annuity, and perpetuity. An…
Q: Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: if money is worth 8% compounded quarterly, what is the present and future value of an ordinary…
A: The present and future value can be computed with the help of annuity function
Q: A one-year annuity that pays $100 semi-annually will starts its payment in 6 months from now. APR is…
A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a…
Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O,…
A: The payment flow which continues for a definite time period and terminates after lapse of time…
Q: Suppose that an annuity will provide for 20 annual payments of 1440 dollars, with the first payment…
A: Total number of annual payments is 20 Annual payments $1440 First payment coming in 11 years from…
Q: What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be…
A: As a fist step, let's shifts ourselves to the end of t = 10 years.Annuity, A = $ 2,500; n = number…
Q: With a present value of $110,000, what is the size of the withdrawals that can be made at the end of…
A: We need to use present value of ordinary annuity(payment due at end) formula to calculate the size…
Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…
A: Annuity means number of payments made at equal interval of time and equal in size. Ordinary annuity…
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: There is a perpetuity due in which the payments increase by 5 percent per year, and the present…
A: The cash flows that are started immediately after the investment and go on for an infinite time…
Q: What is thevpresent value of an annuity of 1,600 per year for 10 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: How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years?…
A: A perpetuity is payment for ever An annuity is payment at the end of the period for a limited period…
Q: If you have a 13-year annuity paying $305 quarterly in 5 years when interest is 3.25% compounded…
A: Time Period = 13 Years Monthly Payment made at beginning = $305 Payment started in 5 years…
Q: Suppose payments will be made for 5 1 4 years at the end of each month from an ordinary annuity…
A:
Q: An increasing annuity makes annual payments, and the first payment occurs in 6 months. The annuity…
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 an ordinary annuity of $80 paid at the end of each quarter for 5 years, if…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Find the present value of the decreasing annuity necessary to fund a withdrawal of $100 per month…
A: The question gives the following information:
Q: Suppose a $100 monthly payment, at a .5% nominal rate per month, for 36 months. Find the present…
A: given information monthly payment = $100 interest rate = 0.5%/12 = 0.04166666666% no of months = 36…
Q: Find the present value of a deferred annuity of P30000 every three months for 3 years that is…
A: a. Determine the value of the fund after 1 year using the Excel PV function with the following…
Q: Find the present value of an annuity due that pays $3000 at the beginning of each quarter for the…
A: Here compounding is given quarterly. So, there will be four quarters in a year. Divide rate by 4 to…
Q: If $80,000 is invested in an annuity that earns 5.3%, compounded quarterly, what payments will it…
A: The total number of years is 8.5. The total number of quarters will be (8.5 × 4) = 34. Interest rate…
Q: Find the present value of an annuity due that pays $2000 at the beginning of each quarter for the…
A: The quarterly amount is $2,000. The annual interest rate is 6.6%, compounded quarterly, So, interest…
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
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- given the situation , choose the correct formula to solve the problem: find the future value of an ordinary annuity of $5,000 paid quarterly for 4 years, if the interest rate is 8%, compounded quarterly.This problem demonstrates the dependence of an annuity's future value on the size of the periodic payment. Suppose a fixed amount will be invested at the end of each year and that the invested funds will earn 5.3% compounded annually. What will be the future value of the investments after 15 years if the periodic investment is: (Do not round intermediate calculations and round your final answers to 2 decimal places.) Investment Future Value a. $2,300 per year $ b. S3, 300 per year $ c. S4, 300 per year $Suppose payments will be made for 6 1/4 years at the end of each month from an ordinary annuity earning interest at the rate of 4.25%/year compounded monthly. If the present value of the annuity is $46,000, what should be the size of each payment from the annuity? (Round your answer to the nearest cent.)
- Compute the present value of an annuity of $621 per year for 25 years, given a discount rate of 6 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Your Answer: AnswerThe present value of a 4-year annuity is $47,000. The first annual cash flow occurs one year from today. If the discount.rate is 4.8%, what is the payment amount? Enter your answer as a positive number, and round to the nearest penny.Suppose that $500 is deposited at the end of every quarter for 6 years in an account that pays 8% compounded quarterly. What is the interest rate per period? Find the future value of the annuity.
- Calculate the present value of a 30-year annuity with annual payments which pays an initial payment of $1,416.16 at the end of 10 years. Each subsequent annual payment is 4% larger than the previous payment. Assume the effective annual interest rate is 0.039. Give your answer to the nearest dollar.Find the present value of the decreasing annuity necessary to fund a withdrawal of $100 per month for 20 years, if the annuity earns 3% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.An annual perpetuity has a constant cash flow of $1000. If the interest rate is 7% compounded annually, what is the present value of the perpetuity?
- Consider an annuity-immediate with monthly payments for twenty years. The payments are level in the course of each year, then increase by 2% for the next year. Find the present value of this annuity if the initial payment is $1,300 and i = 4%. (Round your answer to the nearest cent.)What is the present value of a 15 year annuity with the first payment of $45,000 (all payments are the same amount) in one year from now. Assume a discount rate of 8% and annual compounding.Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)
