How much would you pay today for a perpetuity of $ 1,000 per year if the prevailing interest rate is 5.25%?

Q: the present value of perpetuity that pays 500,000 per year if the appropriate interest rate is 10%…

A: Present value of perpetuity = Annual amount / interest rate

Q: Suppose you are going to receive $13,500 per year for five years. The interest rate is 8.4% a. What…

A: PV of Ordinary Annuity = 13500*a<5> = 13500*(1-(1+i)^-5)/i = 13500*(1-1.084^-5)/0.084 =…

Q: What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an…

A: When the Cash Flows occurs at the end of each period, the annuity is called a Regular Annuity. In…

Q: What is the present value of the payments if they are in the form of an ordinary annuity? What is…

A: The present value can be calculated as follows : Calculations for above :

Q: 1. What is the present worth of a P1000 annuity starting at the end of the third year and continuing…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If you deposit $10,000 dollars into a savings account, what interest would you need to be earning to…

A: Working note:

Q: What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate…

A: Given details are : Annual payment = $3800 Interest rate = 5% = 0.05 From these details we need to…

Q: Why would you prefer to receive an annuity due for $10,000 per year for 10 yearsthan an otherwise…

A: An ordinary annuity is an annuity which pays the cash flows at the end of the period. Under the…

Q: How much would $5,000 due in 10 years be worth today if the discount rate were 5.5%?

A: Information Provided: Years = 10 Future value = $5000 Discount rate = 5.5%   NOTE: As per our…

Q: 2. You buy a perpetuity that starts its annual payment $100 in 5 years from now. The EAR is 5%. a.…

A: A perpetuity is a series of equal cash flows which are never-ending ie: they go on forever. The…

Q: You are offered an annuity that will pay R17,000 per year for 7 years (the first payment will be…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose you invest in an annuity that pays 6% interest, compounded annually. You contribute $4,500…

A: Given information: Annuity payment is $4,500 Interest rate is 6% compounded annually Number of years…

Q: What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10…

A: Given: Annual cash flow (A)=$1000 Number of years (n) =9 years Interest rate(r) = 10% = 0.10

Q: A. What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your…

A: A. Future value is $610.51.

Q: What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $75 per year?

A: Rate of return is the rate you earn on perpetuity i.e. amount initially paid.

Q: Suppose you're going to receive $7800 per year for five years. the appropriate discount rate is…

A: An annuity is defined as a stream of payments over a fixed period of time. Most people normally…

Q: What is the present value of perpetuity of $100 per year if the appropriate discount rate is 7…

A: Time value of money-It is based on the concept that money earned today is worth more than similar…

Q: 8. How much must you deposit if a bankoffers 2% interest and your goal is to have $1500 next year?

A: As per our protocol we provide solution to one question only but as you have asked three questions…

Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…

A: present value of a perpetuity = Annual payment/Discount rate

Q: much of the value of the account can be attributed to the interest earned? 5)You want have $12,000…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You borrow an amount and agree to pay it off with one lump sum payment of $40,000 in 6 years at 10%.…

A: If the interest is compounded annually Then amount to be borrowed can be calculated using following…

Q: perpetuity

A: Formula for present value of perpetuity: Present value of perpetuity = PMT/i Where PMT is the annual…

Q: 4. Suppose Ken invested $1 million in an ordinary annuity that earned 4.25%. a. How much would he…

A: We will solve this question with the help of PMT function in excel where,   rate- Interest rate…

Q: 5. What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at…

A: Using the FV function in excel

Q: What is the present value of a perpetuity that pays $250 per year if the appropriate interest rate…

A: In the given question we are given five options regarding present value of perpetuity and we need to…

Q: what's the future value of the same annuity due?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: What’s the present value of a 5-year ordinary annuity of $100 plus an additional$500 at the end of…

A: Given information: Cash flows from 1 to 5 years is $100 Lump sum amount at the end of 5th year is…

Q: you would earn if you paid $1

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: If you put up $37,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual…

A: Time value of money states that the worth of money in present is always more than that of future…

Q: What is the present value of a $400 annuity payment over 5 years if interest rates are 6 percent?

A: given, A = $400 r=6% n=5 years

Q: . If you borrow $8,000 with a 5 percent interest rate to be repaid in five equal payments at the end…

A: Annuity = $ 1848

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…

A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5

Q: 1.1) For $20,000, you can purchase a five-year annuity that will pay $5000 per year for five years.…

A: Here, Details of 1.1 Present Value (PV) is $20,000 Annuity Payment (PMT) is $5,000 Time Period…

Q: What is the present value of a security that will pay P290,000 in 20 years if securities of equal…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What’s the present valu

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: What is the present value of a perpetuity that pays $50 annually and has an annual rate of return of…

A:

Q: What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the…

A: The perpetuity is the annuity that happens for a perpetual period. In other words, it is the equal…

Q: You deposit $100 in a savings account today, and this account accrues interest compounded annually…

A: Compounding is the power of increasing the amount of investment by adding interest in principal and…

Q: What is the present value of a $1,100 payment made every year forever when interest rates are 4.5…

A: In this question we need to compute the present value of $1100 payment made every year for forever…

Q: What is the future value of an $800 annuity payment over 10 years if the interest rates are 6…

A: Future value is the value of an asset in the future. It is based on an assumed rate of growth. It is…

Q: RM 50 is deposited every month for 2 years at 12% compounded monthly. What is the future value of…

A: An annuity is a series of cash flows with a fixed payment over a specific time period. The future…

Q: What's the present value, when interest rates are 8.5 percent, of a $135 payment made every year…

A: Annual payment = $ 135 Period  = Forever Interest rate = 8.5%

Q: What's the future value of a 7 percent,  5-year ordinary annuity that pays $300 each year?

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What is the present value or price of a 10 year $20,000 annuity with an interest rate of 5% $1.9M…

A: Present value of annuity can be calculated as: = Annuity * Present Value annuity factor (i%, n…

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.