Hi, How do i solve this corporate finance problem using a formula or financial calculator. The present value of an annuity making annual payments of $3,200 starting 8 years from today is $13,465.99. If the fund earns 10.5%/year (effective), how many annual payments (in whole years) of $3,200 can be made?

Q: 12) What is the annualized cost of the debt for a sinking fund that has semi-annual deposits and it…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: Find the present value of a perpetuity that pays $2,000 per year and the interest rate is 10%.

A: We are given following details : Annual cash flow in perpetuity = $2000 Interest rate = 10% We need…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Suppose you just won the state lottery, and you have a choice between receiving $2,825,000 today or…

A: Present value = pv = $2,825,000 Time = nper = 20 years Payment = pmt = $240,000

Q: Calculate the most an investor would pay for an ordinary annuity that pays $10,000 per year for 15…

A: An annuity is a contract that you have with an insurance provider that calls for regular payments to…

Q: 1) You make a $75,000 investment in the following way: You purchase an annuity immediate with 30…

A: An annuity immediate: An annuity immediate refers to a scheme where money is paid upfront (at the…

Q: 3) equal deposits. The first deposit is made right now, the second, one year from now, and the…

A: Given data; amount needed to be accumulated = $ 25,000 Number of year= 3 interest rate = 5% deposits…

Q: Consider the following investment: $1,000 placed into a fund at the beginning of every quarter at an…

A: The sum of all these future cash flows at a given future date is represented as the annuity's future…

Q: You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal…

A: Future value = fv = $2 million Time = t = 30 years Nominal rate = 11% Inflation rate = 5.5%

Q: $11,000 is to be paid at the end of each year in a legal settlement. The payments end after 9 years.…

A:

Q: YYou expect your retirement fund to be able to afford $40,000 a year, adjusted for 3% annual growth…

A: Payment = p = $40,000Growth Rate = g = 3%Time = t = 20Rate of Return = r = 10%

Q: Suppose you have an opportunity to invest in a fund that pays 13% interest compounded annually.…

A: Initial investment in fund = $5000Interest on fund = 13%Loan amount = $2500Interest on loan = 8%To…

Q: What is the equivalent average annual effective rate of interest over 5-year period if the fund…

A: Effective interest rate is the interest rate considering the impact of compounding on the interest…

Q: you just won the state lottery, and you have a choice between receiving $2,625,000 today or a…

A: Rate of return inbuilt in annuity is rate at which present value of annuity is equals to amount of…

Q: n annuity pays $500 per year for 12 years beginning one year from today. What is th alue of the…

A: The present value of annuity is the equivalent value that is equal to payment to be done considering…

Q: A small business owner deposits $5000 monthly deposits in an equity fund as his financial analysis…

A: future value of annuity formula: Future value =A×1+rmm×n-1rmwhere,A=annuityr=rate of…

Q: corporation hopes to withdraw $9,000 at the end of each year for six years from a fund that earns 7%…

A: Variables in the question:Withdrawal each year (PMT)=$9000 n=6 yearsRate=7%

Q: (Comprehensive problem) You would like to have $52,000 in 12 years. To accumulate this amount, you…

A: Future value = $52,000Period = 12 yearsInterest rate = 10% compounded annually

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: The pipe guy plans to deposit $78,000 into an investment each year for the next 10 years so he can…

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

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT…

A: Given Values:Future worth is $50000Interest rate is 7% per annumMonthly payment is 5 yearsFormula…

Q: (Future value of an annuity and annuity​ payments) You are trying to plan for retirement in 12…

A: Saving Account   $       2,10,000 Stocks  $       3,50,000 Annual deposit in saving…

Q: Suppose you just won the state lottery, and you have a choice between receiving $2,455,000 today or…

A: Given, Today's value (PV) = $2,455,000 Annuity years (Nper) = 20 Yearly payment (Pmt) = $230,000

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4 years. If an…

A: Given: Payment = $50,000 Years = 4(1/2) or 4.5 years Interest rate = 6.32%

Q: O A. $10,135.48 O B. S10,461.75 O C. $10,578.92 O D. $10,556.23 O E. S10,337.46

A: investment =10000 Rate of return =11% Expenses =5.75+1.25=7%

Q: 5. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year…

A: An annuity refers to a fixed stream of payments. In this case the annuity amount is $100,000 per…

Q: money right now. Find FV Annuity: If you deposit your annual payments into an account earning 2% per…

A: Payments = $10,000 Interest rate = 2% Time period = 10 years

Q: An endowment fund is set up today. It provides payments of $1500 a year for 6- years (first payment…

A: The question is based on the concept of present value for annuity and perpetuity payment .

Q: Suppose you have the opportunity to invest in a fund that pays 12% interest compounded annually.…

A: Given:workings:

Q: If P10,000.00 is deposited each year for 9 years, how much annuity can a person get annually from…

A: First we need to calculate future value of annuity for 9 years by using this equation FV of annuity…

Q: If I lend $40,000 to my friend at 8% per year simple interest, what compound interest rate would…

A: Given: Amount = $40,000 Interest rate = 8% Years = 10

Q: Annuity interest rate) Your folks just called and would like some advice from you. An insurance…

A: Present Value of Annuity = pv = $12,798.91Annual payment = pmt = $2000Time = nper = 15 years

Q: 5. A scholarship fund pays out 50,000 annually beginning n years from now. To make this go according…

A: It is a case of depositing funds for n years and afterward, issuing annual scholarships for…

Q: Let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from our…

A: Given: Value of the annuity “P” = $1368506.12 Interest rate = 5% Per month rate “r” = 5%/12 Number…

Q: You are the beneficiary of a trust fund that will start paying you cash flows in five years. The…

A: Present value is the current value of money that will be received in the future in the form of one…

Q: Assume the required reserve ratio is 10 percent and that the commercial banking system has $110…

A: The question is based on the concept of banking reserve ratio . The reserve ratio in bank is…

Q: Teal and Associates needs to borrow $35,000. The best loan they can find is one at 12% that must be…

A: Monthly payment for the loan comprise of an interest part and principal repayment part and is…

Q: A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to…

A: Future value of annuity is amount deposited by the annuities and also amount of interest being…

Q: You want to establish an annuity that will pay you $14,000 per year for 22 years. If the prevailing…

A: We need to use present value of ordinary annuity formula to calculate amount we need to deposit…

Q: Teal and Associates needs to borrow $55,000. The best loan they can find is one at 13% that must be…

A: Given: Borrowing = $55,000 Interest rate = 13% Years = 5(1/2) = 5.5 years