Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…
A: Present value of annuity payment - it means present value of future annual equal payment made to a…
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: How much money do you need to invest now for you to receive Php 25 000 semi-annually for 7 years if…
A: As per the information given in the question, Annual interest rate 10% (5% semi- annually)…
Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?
A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…
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: four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how…
A: Present value =10000 interest rate =5% Period =4 years Present value FACTOR =1-(1.05)-4/0.05…
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: what is the future value of an ordinary annuity of 2,200 per year for 15 years compounded at 16…
A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.
Q: 1.If you put up $40,000 today in exchange for a 7.65 per cent, 20-year annuity, what will the annual…
A: Because you have posted multiple questions, we will answer the first question only.For the remaining…
Q: Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 8%. What is the…
A: A perpetuity is a payment which has no end, it continues forever. It is a stream of cash flow that…
Q: What's the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this was an…
A: For ordinary annuity, payment takes place at the end of every period and for annuity due, payment…
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: What's the future value of an 8%, 5-year ordinary annuity that pays $100 each year? If this was an…
A: Annual payment=100Interest rate=8%Number of years =5
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: Suppose that an annuity will provide for 20 annual payments of 1240 dollars, with the first payment…
A: Total number of payments "N" is 20 Annual payments "PMT" is $1,240 Interest rate is 8.8% convertible…
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: Assume that you are going to receive $468 yearly until the day of your retirement (15 years from…
A: The annuity is a series of cash flow wherein an equal amount is paid every period. The value at the…
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: Which of the following is the approximate internal rate of return for an investment that costs…
A: Concept used: PV factor will be used to know the internal rate of return of investment.
Q: hat is the present value of a perpetuity paying $1500 each year, if the effective annual interest…
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $1,000 monthly?
A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…
Q: Suppose you put $ 450 a month for retirement into an annuity earning 4.25% compounded monthly. If…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an…
A: Calculation of future value of annuity:
Q: What's the future value of a 5%, 5 year ordinary annuity that pays $800 each year? If this was an…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Suppose that an annuity will provide for 20 annual payments of 1440 dollars, with the first payment…
A: Total number of annual payments is 20 Annual payments $1440 First payment coming in 11 years from…
Q: An annual perpetuity has a constant cash flow of $1000. If the interest rate is 7% compounded…
A: Given, Annual cash flow: $1,000Interest rate: 7%Present value of perpetuity=Annual cash…
Q: f you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash…
A: Present value (PV) = $41000 Interest rate (r) = 5.1% Number of annual payments (n) = 15
Q: If you put up $38,000 today in exchange for a 6.75 percent, 14-year annuity, what will the annual…
A: Solution- We know that PV=PMT[(1-(1+r)^-n)/r] Where PMT= Periodic payment r= rate n= number of…
Q: What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an…
A:
Q: What is the present value of an ordinary annuity if its value at the end of 10 years is Php 50 000?…
A: Annuity Amount PHP 50,000 Rate of Interest (12% /4) 3% Period (10 Years * 4) 40
Q: A perpetuity with a present value of $80,000 today yields cash flows of $2,500 per quarter. The…
A: For an unlimited amount of time, the stream of cash flows that continues is known as perpetuity. A…
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: What is the future value of an annuity with annual cashflows of $4,000 for 38 years? The interest…
A: Future value of an annuity is the future value of stream of same annual cash flows which takes place…
Q: You are considering an annuity that costs $91,288 today. The annuity pays $6,500 a year at an annual…
A: The length of the annuity will depend upon the costs of the annuity, the periodic payment, and the…
Q: Suppose payments will be made for 5 1 4 years at the end of each month from an ordinary annuity…
A:
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 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: If the future value of an ordinary, 7-year annuity is $9,900 and interest rates are 9.0 percent,…
A: Given, Future Value = $9,900 Interest Rate = 9.0% Term = 7 years Formula: Future value of annuity…
Q: What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an…
A: Annuity Amount= $300 each year Rate of Interest (r)= 7% Time period= 5 years
Q: Suppose you are going to receive $10,000 per year for 5 years. The appropriate interest rate is 11%.…
A: Here, Annuity Amount is $10,000 Time Duration is 5 years Interest Rate is 11%
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: How much money do you need to invest now for you to receive 15000 semi-annually for 7 years if it…
A: Semi-annual payment = 15000 Time period = 7 Semi-annual interest rate = 7.5%
Q: What is the present value of an annuity due of $10,000 per year, with the first cash flow received 5…
A: Present value of an annuity the present value of future cashflows
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf you put up $73,000 today in exchange for an annual 6.75 percent, 18-year annuity, what will the annual cash flow be?You have just won a lottery that promises an annual payment of $120000 beginning immediately. You will receive a total of 15 payments. If you can invest the cash flow in an investment that is paying 8% annually, what is the present value of this annuity?
- Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much money is needed to start this annuity if it earns 6.5%, compounded annually? (Round your answer to the nearest cent.)$_____What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be? Round your answers to the nearest cent.What's the future value of a 5%, 5 year ordinary annuity that pays $800 each year? If this was an annuity due, what would its future value be?
- What is the present value of a perpetuity that pays $50 annually and has an annual rate of return of 17%? note: round and show your answer to the nearest dollar.Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%?A perpetuity will make its first payment in 20 years. The first payment will be $5,000, and future payments will increase at a 10 percent annual rate. What is the present value of this investment, assuming a 10% discount rate? Place Answer in Blank Above. What is the difference between a perpetuity and a growing perpetuity? What are real-world examples of each?
- You buy an annuity that will pay you $24,000 a year for 25 years. What is the value of this annuity today if the discount rate is 8.5 percent?If you put up $51,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual cash flow be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an annuity due, what would its future value be?