Two annuities have equal present values and an applicable discount rate of 7 percent. One annuity pays RM2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year? Select one: A. RM2,266.67 B. RM2,331.00 C. RM2,675.00 D. RM2,500.00
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- A perpetuity of $1 each year, with the first payment due immediately, has a present value of $25 at an annual effective rate of i%. The owner exchanges it for another perpetuity with the first payment due immediately and subsequent payments due at two year intervals. What should the payment of the second perpetuity be, in order to keep the same interest rate, i%, and the same present value? A B с D E Less than $1.90 At least $1.90, but less than $1.94 At least $1.94, but less than $1.98 At least $1.98, but less than $2.02 $2.02 or more6. You are comparing two annuities with equal present values. The applicable discount rate is8.75 percent. One annuity pays $5,000 on the first day of each year for 20 years. How much doesthe second annuity pay each year for 20 years if it pays at the end of each year?Two annuities have equal present values and an applicable discount rate of 7.25 percent. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year?
- What is the present value annuity due of RM4,500 with a 6 percent discount rate for 5 years? Select one: a. RM24,165.790 b. RM24,318.345 c. RM24,126.590 d. RM20,093.15You are comparing two annuities with equal present values. The applicable discount rate is 7.25%. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year?Two annuities have equal present values and an applicable discount rate of 7.25 percent. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year? I was able to calculate the beginning. But I can't calculate the end. The answer shared with me is $2,681.25. N=15; I/Y=7.25%; PMT=2,500; FV=0; FIND PV. ON EXCEL I ENTERED: PV(7.25%, 15, 2,5000, 0, 1) I got $24,039.61 But I put in the same information in excel and change the 1 to a 0 to get the end of the period. PV(7.25%, 15, 2,5000, 0, 0) But I get $22,414.56 so my difference is $24,039.61 - $22,414.56 = $1,625.06 Can you show me how to solve it?
- What is the present value of an ordinary annuity that pays $1,000 per year for 4 years, assuming the annual discount rate is 7 percent? a. $3,051.58 b. $762.90 c. $3,624.32 d. $3,738.32 e. $3,387.213 You are comparing two annuities with equal present values. The applicable discount rate is 6.65 percent, compounded annually. One annuity pays $4,500 on the first day of each year for 25 years. How much does the second annuity pay each year for 25 years if it pays at the end of each year?Annuity A pays 1 at the beginning of each year for five years.Annuity B pays 1 at the beginning of each year for four years.The Macaulay duration of Annuity A at the time of purchase is Σ/10. Both annuities offer thesame yield rate.Calculate the Macaulay duration of Annuity B at the time of purchase. Σ=22
- An annuity pays $12 per year for 47 years. What is the future value (FV) of this annuity at the end of that 47 years given that the discount rate is 7%? A. $3,950.69 B. $2,370.41 C. $5,530.97 D. $4,740.83Annuity X pays $1,200 at each year-end for 15 years. Annuity Y pays $1,100 at the beginning of each year for 15 years. The effective annual rate is 8%. Which one is correct? Annuity X has a higher present value than Annuity Y. Annuity Y has a higher present value than Annuity X. Annuity X has the same present value as Annuity Y.suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest per year, componded continously, part a: determined the accumuluated savings in this account at teh end of 25 yrs. part b: in part a,suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25. The annuity will extend from teh EOY 26 to EOY 33, what is the value of this annuity if teh interest rate and componding frquency in part a do not change