Given an annuity-immediate of 100 payable semi-annually for 10 years. Find the value after 18 years if the interest rate is 8% compounded semi-annually.

Q: Find the PV of an annuity that grows at a quarterly rate of 2% for the next 50 years.  Assume that…

A: PV of this growing annuity can be computed using the following formula : PV=PMT×(1-(1+g)n×(1+i)-ni-g…

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 present value of the following annuities: 500 payable semi-annually for 10 years if the…

A: Solution:- When an equal amount is paid each period, it is called annuity. Present value of annuity…

Q: What is the Present Value of a 3-year ordinary annuity of $100 at 5%?  For clarity, the annuity pays…

A: present value of ordinary annuity formula: PVA=A×1-11+rnrwhere,A=annual paymentr=interest…

Q: An annuity due of $100 each for 10 year has a PV of $850. What is the interest rate being offered?

A: Annuity=$100Period=10 yearsPresent value=$850Required is to find out interest rate.

Q: An annuity-immediate has 20 annual payments starting at 5 and increasing by 10 every year. The…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

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

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Calculate the present value of an annuity immediate of 100 per quarter for 6 years using a nominal…

A: Annuity amount = $100Number of years = 6Interest rate = 9%To find: Present value of the annuity.

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

A: Given, The payments $4000 Interest rate is 10% Term is 20 years

Q: Find the present value annuity factor for a 13 year annuity whose annual rate is 4% with daily…

A: The PV of an investment refers to the combined worth of the cash flows of the investment assuming…

Q: 5. Suppose an annuity at 4% compounded semi-annually will pay $4000 at the end of each 6-month…

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

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 the annuity due. Payments of $700 per quarter for 6 years at 5% compounded…

A: Annuity refers to a periodic stream of cash flow occurring in each period (be it a month or a…

Q: Calculate the present value of an annuity with monthly deposits of $2,000 at 5% for 20 years.…

A: Monthly deposits (M) = $2000 Interest rate (r) = 5% per annum = 0.4167% per month n = 20 years = 240…

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: 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: Find the present value of an annuity

A: Present value of annuity represents the current value of the future payments for an annuity. There…

Q: The effective rate of interest is 6% per annum. An annuity is payable annually in arrears for 25…

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

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4% interest for 15…

A: Interest rate = 8 1/4% Interest rate = 8%+0.25% = 8.25% ------------------------------ Monthly…

Q: Find the future value of the annuity due. Payments of $500 per quarter for 3 years at 7% compounded…

A: FV = Future value? C = Quarterly cash flow i.e. $500 r = Quarterly Interest rate i.e. 0.0175 (0.07 /…

Q: Annuity will pay $200 at the end of each of the next 10 years and $600 at the end of each of the…

A: The Present Value of Annuity (PVA) is a financial concept that calculates the current worth of a…

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: Assume that you make quarterly payments of $ 750 into an annuity paying 9% interest compounded…

A: Quarterly payment = $750 Interest rate = 9% Quarterly rate = 0.09/4 = 2.25% Time =10 years Quarterly…

Q: The effective rate of interest is 6% per annum. Calculate the value at the start of the payment…

A: concept. Future cash flows are discounted to present value using discounting  rate of return. this…

Q: Find the present value and accumulated value of an annuity-immediate of P100 payable every six…

A: An annuity immediate is a type of annuity where regular payments begin immediately, usually within…

Q: 15-year annuity of thirty $10,000 semiannual payments will begin 11 years from now, with the first…

A: The annuity is series of the uniform periodic payments at regular intervals and the present value of…

Q: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: Using The Future value function in excel

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: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4 % interest for 10…

A: An annuity is a kind of deposit payment that an individual makes into an investment account or a…

Q: Find the value of an investment after four years for a $7000 ordinary annuity at 10% compounded…

A: We need to use the formula below to compute the FV of ordinary annuity. In the formula above, PMT =…

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: An immediate annuity makes monthly payments for 20 years. During the first year, each monthly…

A: An annuity is a payment series that provides an income to the holder in exchange for a lump-sum…

Q: Calculate the present value of the annuity. (Round your answer to the nearest cent.) $1800 monthly…

A: The time worth of cash (TVM) is the idea that an amount of cash is worth more now than a similar…

Q: ind the present value of a perpetuity starting at time 10 paying 100 nnually if the interest rate is…

A: A perpetuity is an annuity that goes on forever. In other words a perpetuity, as the name indicates,…

Q: Find the future value of a 15-year, $300 per year annuity at 6%.

A: Following details are given in the question regarding annuity : Annual Payment in annuity = $300…

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

A: The annuity is a set of payments made in exchange for a lump sum payment. It is widely used in…

Q: nuity with yearly payments of 674 that’s compounded annually with an interest rate of 5.4% will be…

A: Future value of the annuity includes the amount being deposited over the period of time and amount…

Q: Find a future value of an ordinary and annuity 300Paid quarterly for five years, if the interest…

A: If the interest is paid quarterly so the interest rate must be divided by 4 because in a year there…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.