What is the accumulated value after five years of payments of $20000 made at the beginning of each year if interest is 7% compounded quarterly?
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What is the accumulated value after five years of payments of $20000 made at the beginning of each year if interest is 7% compounded quarterly?
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How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?
- (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Find the future value of the following annuity due. Then determine how much of this value is from contributions and how much is from interest $300 deposited at the beginning of each quarter for 13 years at 8.96% compounded quarterly The account will have a total of Safter 13 years. (Round to the nearest cent as needed.) How much of this is from contributions? $ (Round to the nearest cent as needed.) How much of this is from interest? $ (Round to the nearest cent as needed)
- What is the difference between the sums of an annuity due and an ordinary annuity for the following data.-Periodic payment=10,000, Payment interval= 1 year, Terms= 20 years, interest rate = 12% compounded annually.For each of the following situations involving annuities, solve for the unknown (?). Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) Present Value Annuity Amount i n1. ? $ 3,000 8% 52. $ 242,980 75,000 ? 43. 161,214 20,000 9 ?4. 500,000 80,518 ? 85. 250,000 ? 10 4 Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $12,000 in student loans. She asks for your help in determining the…Find the future value of each annuity due. Then determine how much of this value is from contributions and how much is from interest. Payments of $1000 made at the beginning of each semiannual period for 7 years at 8.49 % compounded semiannually The future value of the annuity due is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The amount from contributions is $ The amount from interest is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
- B. Directions: Solve the following problems completely. Find the period of deferral in each of the following deferred annuity. a) Monthly payments of P 2,000 for 5 years that will start 7 months from now. b) Annual payments for P 8,000 for 12 years that will start 5 years from now. c) Quarterly payments of P 5,000 for 8 years that will start two years from now. d) Semi-annual payments ofP 60,000 for 3 years that will start 5 years from now. e) Payments of P 3,000 every 2 years for 10 years starting at the end of 6 years.What is the present value of an annuity of $7,100 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)The present value of an ordinary annuity is used to compute the amount of a single deposit to bemade today into an account earning interest of 6 percent per year compounded monthly. Thedeposit must be sufficient to cover a withdrawal of an equal amount each month for 10 years. At theend of the 10 years, the balance in the account should be $0. To solve for the amount needed (thepresent value), the total number of conversion period (n) is __________ and the interest rate perconversion period is __________. A. 10 periods, 6 percentB. 10 periods, 0.5 percentC. 120 periods, 6 percentD. 120 periods, 0.5 percent
- Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=16,000; 4.3% interest compounded quarterly for 11 years. The future value of the ordinary annuity is $__ (Round to the nearest cent as needed.) The amount from contributions is $__ and the amount from interest is $__. (Round to the nearest cent as needed.)What is the future value (at the end of 8 years) of an annuity that pays $700 a quarter over 8 years with the payments invested at 9.3% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78) Answer: CheckSuppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)