In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the required payment for the sinking fund
Q: What is the present value of Nagpada's ordinary annuity of 10-years whose cash flows are $1,500 per…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: Monthly deposit can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv], [type])…
Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…
A: The present value of an annuity is the current value of future payments from an annuity, assuming a…
Q: If $417.00 is deposited at the end of each year for 6 years into an ordinary annuity earning 4.08%…
A: Here, Yearly Deposit is $417.00 Time Period is 6 years Interest Rate is 4.08% Compounding Period is…
Q: Based on a 5% annual effective interest rate, find the present value of a 10-year annuity with level…
A: This is deferred annuity as the first payment is being done sometime later in the future (6th year).…
Q: Consider the three 20-year annuities described below: (1) level payments of £1,000 payable annually…
A: Payments of £1,000 payable annually in arrears Increasing payment of 1000 made annually in arrears…
Q: A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity eaming 9.52%…
A: Using excel
Q: n annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate…
A: Present value of annuity can calculated by using Excel PV function.
Q: Suppose ₱2500 is deposited at the end of each year for the next 5 years in an account paying 7.5%…
A: Annual deposit (P) = P 2500 Annual interest rate (r) = 7.5% Number of annual payments (n) = 5
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: Time taken can be calculated using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The…
Q: The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the…
A: The present value of annuity refers to the current value of future annuity payments to be paid at a…
Q: Find i (the rate per period) and n (the number of periods) for the following annuity. Quarterly…
A: Solution:- An equal amount deposited every period is known as annuity. Now, in annuity, rate per…
Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…
A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.
Q: What deposit made at the beginning of each month will accumulate to $120,000 at 8% compounded…
A: A cash flow diagram is a visual representation of cash inflows and cash outflows over a specified…
Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…
A: In this question we need to compute the present value of the following annuity streams.
Q: 11. In the following ordinary annuity, the interest is compounded with each payment, and the payment…
A: 11. where : FV = Accumulated Amount of the annuity PMT =Payment per period = $5500 i = interest…
Q: An annuity with a cash value of $15,500 earns 7 % compounded semi-annually. End-of-period…
A:
Q: If the present value of an ordinary. 7-year annuity is $6,500 and interest rates are 75 percent,…
A: The present value of annuity due is simply calculated as the present value of ordinary annuity…
Q: Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)
A: Ordinary Annuity: When the annuity payments are paid at the end of the period, such annuity payments…
Q: The future value of an ordinary annuity of $1,000 each year for 10 years, deposited at 3 percent, is
A: Payment (PMT) = $ 1,000 Tenure (N) = 10 years Rate (R) = 3%
Q: A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to…
A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…
Q: A 25-year annuity was purchased with $225,000 that had accumulated in a RRSP. The annuity provides…
A: DefinitionRRSP: A Registered Retirement Saving Plan is an investment cum retirement saving plan for…
Q: An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year.…
A: Given, Payment made is $8 starting from the end of year 12th. Since payment is starting from the…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: To calculate the Required payment of sinking fund, PMT function in the excel can be used. PMT(rate,…
Q: Determine the present value of an ordinary annuity of P1,000 per year for 10 years with the first…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: In an ordinary annuity, the amount deposited every period at the end of regular intervals grows at…
Q: For the following ordinary annuity, determine the size of the periodic payment. Present Payment…
A: Present value of annuity = $12700 n = 9 years 3 months = 111 months r = 4.3% per annum = 0.3583% per…
Q: An annuity provides for 20 annual payments. The first payment of $ 100 is made immediately and the…
A: Payments made at the beginning of each period are called Annuity due.
Q: For $10,000, you can purchase a five-year annuity that will pay $ 2,504.57 per year for five years.…
A: Duration of an annuity means the time period for which the annuity will provide return to the…
Q: uppose the amount of an ordinary annuity that consists of 10 yearly payments of 150$ , provided that…
A: An ordinary annuity is a series of equal payments made at the end of consecutive periods over a…
Q: In a sequence of 10 annual payments of 2,000 pesos each, the first one is due at the end of 6 years.…
A: An annuity is a series of regular and equal cash flows. The present value is the discounted value of…
Q: An annuity pays $1000 at the end of each year for 5 years and then $2000 at the end of each year for…
A: The discounted value is present value of future cash receipts
Q: In the provided formulas, P is the deposit made at the end of each compounding period, r is the…
A: Using the future value annuity formula: Rate of interest per quarter (r) = 7.25%/4 = 0.018125 Number…
Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 8.99%…
A: Interest amount using ordinary annuity can be calculated by subtracting principal by the end of the…
Q: A 5-year annuity-due has semiannual payments with the first payment starting two years from now. The…
A: First semi annual payment = 800 Decrease in each payment = 50 Interest rate = 8% Semi annual…
Q: An increasing annuity makes annual payments, and the first payment occurs in 6 months. The annuity…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: For each of the following cases, calculate the present value of the annuity, assuming the annuity…
A: Annuity is an cashflow which is transferred between sender and recipient as a series of payments
Q: Find the present value of an annuity with periodic payments of $2,000, for a period of 10 years at…
A: Periodic payment (P) = $ 2000 Period = 10 Years Number of semiannual periodic payments (n) = 10*2 =…
Q: If P44,873 is deposited each year for 6 years at an interest rate of 14.225% compounded semi…
A: Here we will use the concept of time value of money. The concept of time value of money states that…
Q: What is the difference between the sums of an annuity due and an ordinary annuity for the following…
A: We need to compute the future value of both the annuities and compare. Future value can be…
Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…
A: Net present value is defined as the discounted cash flow technique which applies to weight the items…
Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…
Q: The present value of an ordinary annuity of $350 each year for five years, assuming an interest rate…
A: The present value of a fixed amount that will be received or paid, over a specified time period, is…
Q: Given the following situations. Illustrate and distinguish whether it is a simple annuity or a…
A: Simple annuities are annuities where the payments are made at the end of the period and the…
In the following ordinary
Find the required payment for the sinking fund. (Round your answer to the nearest cent.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the required payment for the sinking fund. (Round your answer to the nearest cent.) Yearly deposits earning 12.3% to accumulate $7500 after 12 years.Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $500 is deposited monthly for 10 years at 4% per year in an account containing $5,000 at the start
- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.) $295 monthly at 5.8% to accumulate $25,000.Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $550 is deposited monthly for 13 years at 5% per yearFind the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest ten dollars.) $400 deposited monthly for 10 years at 3% per year
- ind the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $200 is deposited monthly for 10 years at 6% per year in an account containing $9,000 at the startIn the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.Find the accumulated amount of the annuity. (Round your answer to the nearest cent.) $1000 monthly at 6.6% for 20 years.Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest ten dollars.) $200 deposited monthly for 15 years at 4% per year FV = $
- Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $1,200 is deposited quarterly for 20 years at 6% per year FV = $Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $400,000 at 5%, paid out monthly for 20 yearsFind the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $170 deposited monthly for 20 years at 3% per year in an account containing $11,000 at the start Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $90,000 in a fund paying 6% per year, with monthly payments for 5 years