Suppose that $500  is deposited at the end of every quarter for 6 years in an account that pays 8% compounded quarterly. What is the interest rate per period? Find the future value of the annuity.

Q: What is the value of an annuity at the end of 10years if $1,000 is deposited every six months into…

A: Introduction: Future value of an ordinary annuity can be defined as a metric which helps to know how…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

A:

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: The future value is $

A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n  - 1) /interest…

Q: Assume that you make quarterly payments of $ 575 into an annuity paying 6% interest compounded…

A: Variables in the question:PMT=$575 (quarterly payment)Rate=6% (compounded quarterly)N=12 years

Q: Find the interest rate that an ordinary annuity pays, if the annuity pays $312 per month with its…

A: An annuity pays regular and constant payments over a period of time. Here the annuity amount is $312…

Q: Find the difference between the sums of an annuity due and an ordinary annuity for the following…

A: An annuity is a series of cash flows wherein an equal amount is paid every period. An ordinary…

Q: Find the present value of an annuity of $ 365.00 per month for 26 years at a rate of 3 1/4% interest…

A: Monthly payment (P) = $ 365 Period = 26 Years Number of monthly payments (n) = 26*12 = 312 Annual…

Q: The present value of an annuity is given. Find the periodic payment. (Round your final answer to two…

A: Present value of annuity = Payment,*1/r[1-(1/(1+r)^n]] Where r= 7.3%/4 = 1.825% n= 4 quarters*20…

Q: What is the difference in present value between a perpetuity that pays $500 per year and an ordinary…

A: Annual payment (A) = $500 n = 23 years for ordinary annuity r = 7%

Q: Find the future value of the annuity due. Payments of $600 per quarter for 6 years at 6% compounded…

A: STEP 1 Annuity Due An approach to determine how much money a series of payments will be worth at…

Q: what is the present value of the perpetuity?

A: Present Value: It represents the present worth of the perpetual/constants cash flows. It is…

Q: Find the future value of the annuity due. Payments of $700 per quarter for 6 years at 5% compounded…

A: Annuity refers to a periodic stream of cash flow occurring in each period (be it a month or a…

Q: The monthly compounded interest rate is 10%. What is the effective annual interest rate and what is…

A: Compound = n = Quarterly = 4Interest rate = r = 10%Cash Flow = cf = $100Time = t = 3 Years

Q: Find the present value of an ordinary annuity with deposits of 23,958 every 6 months for 4 years at…

A: The formula to compute present value:

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

Q: You are set to receive an annual payment of $11,200 per year for the next 18 years. Assume the…

A: Given the following: Annual payment, A = $11,200  Period, n = 18 years  Interest rate, r = 6.1%

Q: Find the future value of the annuity due. Payments of $500 per quarter for 3 years at 7% compounded…

A: FV = Future value? C = Quarterly cash flow i.e. $500 r = Quarterly Interest rate i.e. 0.0175 (0.07 /…

Q: Annuity will pay $200 at the end of each of the next 10 years and $600 at the end of each of the…

A: The Present Value of Annuity (PVA) is a financial concept that calculates the current worth of a…

Q: Calculate the present value of a 30-year annuity with annual payments which pays an initial payment…

A: Computation:

Q: Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: A perpetuity will make a sequence of annual payments of 2800, 3000, 3200, ..., with the first…

A: A perpetuity is a type of annuity. To be more specific a perpetuity is that annuity that goes on…

Q: At the end of each month for the next ten years you will receive cash flows of $50.  If the…

A: Annuity refers to the contract between an insurer and the insurance company in which a fixed…

Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…

A: Required :The discounted value of these cash flows.

Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest…

A: Future value can be determined by compounding the present value.

Q: Find the present value of an ordinary annuity which has payments of $1000 per year for 12 years at…

A: The present value of an ordinary annuity is the present value of the same cash flows occurs at the…

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: after 4 years is $60,000, what was the size of each payment?

A: The size of each payment is $3218.97

Q: Assume that you make quarterly payments of $ 400 into an annuity paying 6% interest compounded…

A: Future value of annuity formula is: Future value of annuity is calculated in excel with function…

Q: Assume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded…

A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…

Q: What is the present value of an annuity of $6,000 to be received at the beginning of each of the…

A: Present Value: Present value refers to the current value of future sum of money in lump sum or in…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: Assume that you make monthly payments of $ 675 into an ordinary annuity paying 6% compounded…

A: The amount after 12 years can be calculated as future value of annuity

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.