The present values of the following three annuities are equal: (i) A perpetuity-immediate paying 1 each year, calculated at an annual effective rate of 8% (ii) (iii) A 40-year annuity-immediate paying 1 each year, calculated at an annual effective rate of i%. An n -year annuity-immediate paying 1 each year, calculated at an annual effective rate of (i-1)% Calculate n. A 27 B 30 C 32 D 39 E 40

Determine the nominal annual rate of interest of the following ordinary general annuity. Periodic Term Conversion Period Payment $81 semi-annually Present Value $1700 Payment Interval 3 months SCCCS The nominal annual rate of interest is (Round to two decimal places as needed.) 7 years % compounded semi-annually.

A perpetuity pays $9600 per half-year, as follows: ㆍin odd-numbered half-year, a payment of $9600 is made at the begin of the half-year. ㆍin even-numbered half-year, a payment of $4800 is made at the end of each quarter. Interest is at annual effective rate of 12.03%. At the begin of an odd-numbered period, this perpetuity is exchanged for another of equal value which provides monthly payments, the first payment due 39 month hence. What is the monthly payment of the new perpetuity ?

For the following ordinary annuity, determine the size of the periodic payment. Present Future Value Value Payment Period $4,400.00 1 quarter Term of Annuity Interest Rate 16 years, 3 months Conversion Period 8.3% quarterly The periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

A perpetuity-immediate pays $100 in the first 10 years, $150 in the next 10 years and $200 in all subsequent years. Determine the present value of these payments at an annual effective interest rate of 3.85%.

An annuity-due makes payments of $15 every other year, with the first payment beginning immediately. The annuity-due makes ten payments. The nominal annual interest rate compounded semiannually is 5%. Calculate the present value of the annuity due. a. 100.0958 O b. 93.2775 O c. 66.7310 d. 124.3700 O e. 133.4620

K Calculate the total interest and principal portions for the series of monthly payments of $166.95 that occur during year 7, for an ordinary annuity of $13,500 with 8.5% interest compounded quarterly for 10 years. Round your answers to two decimal places. Principal Number Interest Number

1) $6000 at 4% compounded semiannually for 12 years Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.

Present Value of an Annuity Determine the present value of $170,000 to be received at the end of each of four years, using an interest rate of 5.5%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar. c. Why is the present value of the four $170,000 cash receipts less than the $680,000 to be received in the future? The present value is less due to over the 4 years. Exhibit 5 Present Value of $1 at Compound Interest Periods 4% 4%% 5% 5%% 6% 62% 7% 10% 11% 12% 13% 0.96154 0.956940 0.95238 0.94787 0.94340 0.93897 0.93458 0.90909 0.90090 0.89286 0.88496 2 0.92456 0.915730 0.90703 0.89845 0.89000 0.88166 0.87344 0.82645 0.81162 0.79719 0.78315 3 0.88900 0.876300 0.86384 0.85161 0.83962 0.82785 0.81630 0.75131 0.73119 0.71178…

A perpetuity makes its first annual payment of $110 exactly 17 years from today. The discount rate is 6.1% per annum compounded annually. 1) What is the present value of this perpetuity valued at exactly Year 13? (Round your answer to the nearest cent) 2) What is the present value of this perpetuity valued at exactly Year 0? (Round your answer to the nearest cent)