(Present value of an annuity due) Determine the present value of an annuity due of $2,000 per year for 25 years discounted back to the present at an annual te of 6 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 11 percent? GED a. If the annual discount rate is 6 percent, the present value of the annuity due is $(Round to the nearest cent) b. If the annual discount rate is 11 percent, the present value of the annuity due is $ (Round to the nearest cent.)

(Present value of an annuity due) Determine the present value of an annuity due of $2,000 per year for 25 years discounted back to the present at an annual te of 6 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 11 percent? GED a. If the annual discount rate is 6 percent, the present value of the annuity due is $(Round to the nearest cent) b. If the annual discount rate is 11 percent, the present value of the annuity due is $ (Round to the nearest cent.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 7P: Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1....

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Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?
Present value of an annuity) What is the present value of the following annuities? a. $2,400 a year for 10 years discounted back to the present at 11 percent. b. $90 a year for 3 years discounted back to the present at 9 percent. c. $290 a year for 12 years discounted back to the present at 12 percent. d. $500 a year for 6 years discounted back to the present at 5 percent. a. What is the present value of $2,400 a year for 10 years discounted back to the present at 11 percent? $nothing (Round to the nearest cent.)
(Present value of a perpetuity) At a discount rate of 13.00%, find the present value of a perpetual payment of $1,500 per year. If the discount rate were lowered to 6.50%, half the initial rate, what would be the value of the perpetuity? a. If the discount rate were 13.00%, the present value of the perpetuity is $ (Round to the nearest cent.) b. If the discount rate were lowered to 6.50%, half the initial rate, the present value of the perpetuity is $ (Round to the nearest cent.)
Find the future value of an annuity due with an annual payment of $14,000 for three years at 4% annual interest using the simple interest formula. How much was invested? How much interest was earned? What is the future value of the annuity? $ (Round to the nearest cent as needed.) How much was invested? S How much interest was earned? S (Round to the nearest cent as needed.) ←
d. Calculate the future sum of $1,000, given that it will be held in the bank for 5 years earning an APR of 10 percent compounded semiannually. e What is an annuity due? How does this differ from an ordinary annuity? f. What is the present value of an ordinary annuity of $1,000 per year for 7 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?
At a discount rate of 6.00%, find the present value of a perpetual payment of $ 1,000 per year. If the discount rate were lowered to 3.00%, half the initial rate, what would be the value of the perpetuity? Question content area bottom Part 1 a. If the discount rate were 6.00%, the present value of the perpetuity is $ enter your response here . (Round to the nearest cent.)
(Present value of an annuity due) Determine the present value of an annuity due of $5,000 per year for 8 years discounted back to the present at an annual rate of 14 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 19 percent? a. If the annual discount rate is 14 percent, the present value of the annuity due is $ (Round to the nearest cent.)
(Present value of a perpetuity) At a discount rate of 6.50%, find the present value of a perpetual payment of $2,000 per year. If the discount rate were lowered to 3.25%, half the initial rate, what would be the value of the perpetuity?a. If the discount rate were 6.50%, the present value of the perpetuity is $]. (Round to the nearest cent.)
Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=16,000; 4.3% interest compounded quarterly for 11 years. The future value of the ordinary annuity is $__ (Round to the nearest cent as needed.) The amount from contributions is $__ and the amount from interest is $__. (Round to the nearest cent as needed.)
How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.48