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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityWhat is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.What amount will be paid at the beginning of every month for 10 years if the present value is 200, 000 and the interest is paid at 6% monthly? Question: What type of Annuity is indicated in the problem above? Annuity due
- What is the present value of a four-period annuity of $200 per year that begins two years from today if the discount rate is 9%?What is the future value of a 12%, 10 year annuity due that pays 1,000 each year.A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?
- What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the appropriate interest rate is 5%?For an ordinary annuity with a five annual payments of $100 and a 10% interest rate, how many years will the first payment earn interest?An annuity that pays $12,500 a year at an annual interest rate of 5.45 percent costs $150,000 today. What is the length of the annuity time period?
- What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment? Use a nominal rate of 7.23%.What is the present value of an ordinary annuity of $400 each month for eight years, assuming an opportunity cost of 0.05?What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate is 5%?