Given an interest rate of 5.7 percent per year, what is the value at t = 8 of a perpetual stream of $4,100 annual payments that begins at t = 18? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value at t = 8 $
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Given an interest rate of 5.7 percent per year, what is the value at t = 8 of a perpetual stream of $4,100 annual payments that begins at t = 18? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Value at t = 8 $
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- Suppose you are going to receive $17,500 per year for five years. The appropriate interest rate is 10 percent. a-1. What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a-2. What is the present value of the payments if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c-1. Which has the higher present value, the ordinary annuity or annuity due? c-2. Which has the higher future value? a-1. Present…Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 11. Compound Interest What rate in percent compounded monthly is equivalent to 18% compounded semi-annually? 14. When compounded bi-monthly, P150,000 becomes P223,183 after 5 years. What is the nominal rate of interest?Given an interest rate of 4.8 percent per year, what is the value at date t = 10 of a perpetual stream of $3,200 payments that begins at date t = 20? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- Suppose you are going to receive $14,500 per year for five years. The appropriate interest rate is 8 percent. a-1. What is the present value of the payments if they are in the form of an ordinary annuity? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a-2. What is the present value of the payments if the payments are an annuity due? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? Note: Do not round intermediate..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 $What is the present value of $876.89 if we discount it by 0.09 for one year (remember the equation c/(1+r)^n ) NOTE interest rate is in decimal already, no need to convert
- Please answer and provide solutions for three questions. 1. Given i(26) = 3.150%, find the equivalent nominal interest rate compounded quarterly. 2. Given an effective quarterly rate of 2.22500%, find the equivalent effective semi-annual rate. (You might need to keep more than the usual number of decimal places!) 3. Given an effective quarterly rate of 1.25000%, find the equivalent nominal rate i(2).Suppose you are going to receive $12,700 per year for six years. The appropriate interest rate is 7.6 percent. a-1. What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a-2.What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 7. Compound Interest A. If the sum of P 12,000 (pesos) is deposited in an account earning interest rate of 9% compounded quarterly, what will it become after 1 year? B. In the previous problem, what is the effective rate? C. What is then the equivalent nominal interest rate if compounded monthly?
- What is the future value (at the end of 8 years) of an annuity that pays $700 a quarter over 8 years with the payments invested at 9.3% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78) Answer: CheckWhat is the present value of $2,225 per year, at a discount rate of 9 percent, if the first payment is received 8 years from now and the last payment is received 23 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)What is the future value of $400 deposited for one year earning an interest rate of 9 percent per year? (Do not round intermediate calculations. Enter your answer as a whole number.)