The monthly compounded interest rate is 10%. What is the effective annual interest rate and what is the present value of an annuity cashflow stream of $100 to be received every quarter for the next three years? Give answers to two decimal places and show all your workings.

Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) $130/month…

A: Annuity payment = $130No of years = 11 years or 11 * 12 = 132 monthsInterest rate = i = 5% per year…

Q: Use graphical approximation techniques or an equation solver to approximate the desired interest…

A: Nominal rate:The nominal rate, in the realm of finance, refers to the stated or advertised interest…

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A: Compound = Monthly = 12Future Value = fv = $90,000Interest Rate = r = 4 / 12 %Time = t = 10 * 12 =…

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Q: The future value is $ (Round to the nearest cent.)

A: Information Provided: Year of payments = 10 Payments = $33,000 Interest rate = 4%

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A: The present value of annuity includes the value of annuities discounted at the rate of interest rate…

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

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Q: Find the future value of the following ordinary annuity. Payments are made and interest is…

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Q: Find the present value of the ordinary annuity with annual payment of $400 per year for 10 years at…

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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 a 12-year annuity due with payments of $3,000 and an annually compounded…

A: The future value of an annuity due is the value of a series of equal payments made at the beginning…

Q: value of the given annu

A: The future value of the annuity can be calculated as follows :

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

A: Present value of annuity is the current value of the future payments that are calculated using the…

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

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A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: What's the interest rate of a 5-year, annual $4,200 annuity with present value of $16,000? (Use a…

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

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A: Computation:

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Q: Find the present value of an annuity with annual payments of $1400 per year for seven years. The…

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Q: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.