Find the present value of an annuity with monthly payments of $8,333.33, at an interest rate of 5.5% for 20 years, for the winner who wants a lump-sum payment.

Q: Find the present value of a perpetuity paying $50,000 annually if the discount rate is 6%.

A: In the given question we require to calculate the present value of a perpetuity. In case of…

Q: Consider a 20-year annuity immediate in which the first payment is 1000$, and each subsequent…

A: (Y0)1ST PAYMENT= $1000 Y1 TO Y10 PAYMENT = 1000 +50 = 1050 Y11 TO Y20 PAYMENT = 1000 +50 +100  =…

Q: Find the payment that should be used for the annuity due whose future value is given. Assume that…

A: Given,  The future value of annuity due is $15,000 Quarterly payments are made for 12 years Interest…

Q: Find the monthly payment that will yield the future value of $260,000 using an ordinary annuity at…

A: Information Provided: Future value = $260,000 Interest rate = 11% Period = 41 years

Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.

A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…

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 a 6-year annuity due with payments of $4,300 and an annually compounded…

A: An annuity is a contract that pays a periodic sum for a predetermined period for a lump-sum amount…

Q: Determine the present value of a $3,500 perpetuity if the interest rate is 7%. If interest rates…

A: Given: Amount = $3,500 Interest rate = 7%

Q: The future value is $ (Round to the nearest cent.)

A: Information Provided: Year of payments = 10 Payments = $33,000 Interest rate = 4%

Q: Find the future value of a 6-year annuity due with payments of $2,050 and an annual compound…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: Find the future value of a 10-year annuity due with payments of $2,250 and an annually compounded…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

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

A: STEP 1 When assuming a specific rate of return, or discount rate, the future value of an annuity is…

Q: Find the present value of the ordinary annuity with annual payment of $400 per year for 10 years at…

A: The ordinary annuity is a series of payments made at the end of each period with equal interval of…

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

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Find the future value of a 15-year annuity due with payments of $2,700 and an annual compound…

A: To Find: Future Value

Q: ind the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: Find the future value of a 12-year annuity due with payments of $3,000 and an annually compounded…

A: The future value of an annuity due is the value of a series of equal payments made at the beginning…

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: Find the future value for the ordinary annuity with the given payment and interest rate. PMT =…

A: PMT = $2000 r = 1.1% per annum = 0.09167% per month n = 6 years = 72 months

Q: Find the future value of a 6-year annuity due with payments of $1,400 and an annually compounded…

A: The future value represents the value of an investment in the future after considering the effect of…

Q: value of the given annu

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

Q: Suppose you are going to receive $5,000 per year for 8 years. The appropriate interest rate is 10…

A: PMT = $5000r =0.10n=8PV of ordinary annuity=?PV of annuity due=?

Q: Find the future value of an annuity of $1300 paid at the end of each year for 15 years, if interest…

A: Annuity is the payment of fixed amount at the end(ordinary) or beginning(due) of a financial period…

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

A: Future value refers to the accumulated sum based on a current deposit. If deposits are made…

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

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 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: Find the future value of a 6-year annuity due with payments of $1,800 and an annually compounded…

A: Annuity due is a type of annuity in which the payments will be accruing at the beginning of the…

Q: Calculate the present value of a 30-year annuity with annual payments which pays an initial payment…

A: Computation:

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: Find the future value of an annuity due with an annual payment of $14,000 for three years at 3%…

A: Annuity amount, A = $1,000Number of compounding periods, n = 4*2=8Interest rate per period, r = 7%/2…

Q: Find the NPV and PI of an annuity that pays $500 per year for eight years and costs $2,500. Assume a…

A: 1.NPV means Net present value.It is calculated as follows:-NPV = Present value of cash inflows -…

Q: Find the payment that should be used for the annuity due whose future value is given. Assume that…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: Find the future value of an annuity due with an annual payment of $9,000 for two years at 7.5%…

A: future value of annuity due is a series of payments made at the beginning of each period

Q: Calculate the present value of a 3-year ordinary annuity of $100 if the appropriate interest rate is…

A: Ordinary Annuity  N = 3 Annuity Amount = 100 Interest rate = 10%

Q: Determine the present value of an increasing perpetuity-due with annual payments starting at 100 and…

A: An annuity is a payment series that provides a periodic sum to the annuity holder in exchange for a…

Q: Find the future value of a 10-year annuity due with payments of $23,000 and an annually compounded…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

Q: You are given an annuity-immediate paying 14 for 14 years, then increasing by one per year for 8…

A: An annuity's present value is the current value of all of its future cash flows discounted, using a…

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…