What is the future value of a $590 annuity payment over four years if interest rates are 8 percent

Q: Assume that you make monthly payments of $625 into an ordinary annuity paying 4% compounded monthly.…

A: In this question we need to compute the ordinary annuity from following details: Monthly payment =…

Q: If you have an annuity with a 5.5% compounded interest rate monthly and 2,000 is invested at the end…

A: The future value of annuity refers to the total value of a series of equal cash flows received or…

Q: What is the present value of a $175 annual payment over 10 years if interest rates are 4 percent…

A: To compute the present value of an annual payment over 10 years at an interest rate of 4 percent, we…

Q: Find the future value of the annuity due. Payments of $600 per quarter for 6 years at 6% compounded…

A: STEP 1 Annuity Due An approach to determine how much money a series of payments will be worth at…

Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…

A:

Q: A monthly perpetuity of $100 will start 6 months from today.  If the discount rate is 6% APR…

A: Interest rate = 6% p.a. compounding monthly I.e. 6/12 = 0.5% for one month Monthly payment amount =…

Q: Find the present value annuity factor for a 13 year annuity whose annual rate is 4% with daily…

A: The PV of an investment refers to the combined worth of the cash flows of the investment assuming…

Q: Find the future value of the annuity due. Payments of $700 per quarter for 6 years at 5% compounded…

A: Annuity refers to a periodic stream of cash flow occurring in each period (be it a month or a…

Q: What is the future value of $2,500 deposited for one year earning a 14 percent interest rate…

A: In the given question we require to compute the future value of investment from following details:…

Q: What is the future value (in $) of an annuity of $4,634 for 15 years if the discount rate is 5.79…

A: Future value refers to the compounded value of the future cash flows for the given period of time…

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…

A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…

Q: What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: Find the future value of a 15-year annuity due with payments of $2,350 and an annual compound…

A: Future value refers to the accumulated sum based on a current deposit. If deposits are made…

Q: A 20-year annuity pays $1,500 monthly, and payments are made at the end of each month. If the…

A: Monthly payments = $1500Period = 20 yearsInterest rate :First 10 years = 6.25%Next 10 years = 5.50%

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?

A: In the given question we need to compute the future value of $700 deposited today for one year at 4%…

Q: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4% interest for 15…

A: Interest rate = 8 1/4% Interest rate = 8%+0.25% = 8.25% ------------------------------ Monthly…

Q: If you want to be paid from a 15 year ordinary annuity with a guaranteed rate of 4.277% compounded…

A: Annual payment (C) = $10,000 Period (n) = 15 Years rate (r) = 0.04277 (i.e. 4.277%) Present value or…

Q: Find the future value of the annuity due. Payments of $500 per quarter for 3 years at 7% compounded…

A: FV = Future value? C = Quarterly cash flow i.e. $500 r = Quarterly Interest rate i.e. 0.0175 (0.07 /…

Q: if money is worth 8% compounded quarterly, what is the present and future value of an ordinary…

A: The present and future value can be computed with the help of annuity function

Q: Annuity will pay $200 at the end of each of the next 10 years and $600 at the end of each of the…

A: The Present Value of Annuity (PVA) is a financial concept that calculates the current worth of a…

Q: What’s the future value

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: Present Value of Annuity. You are entering into a contract that will provide you with an income of…

A: CALCULATING THE PRESENT VALUE OF ANNUITY FORMULA:  PV=C×1-(+i)-ni WHERE C STAND FOR   CASH FLOW FOR…

Q: Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the…

A: Using excel PV function

Q: Assume that you make quarterly payments of $650 into an annuity paying 8% interest compounded…

A: In this question we need to calculate the future value from following details: Quarterly payment =…

Q: What is the value of an ordinary annuity at the end of 10 years if $500 per quarter is deposited…

A: Amount Deposited per quarter = $500 Years = 10 Rate =8% Total terms(n) = 10*4 =40 Rate per quarter…

Q: 15-year annuity of thirty $10,000 semiannual payments will begin 11 years from now, with the first…

A: The annuity is series of the uniform periodic payments at regular intervals and the present value of…

Q: What is the future value of a perpetuity with annual payments of $1,000 compounding at 10%

A: Payment = p = $1000Interest Rate = r = 10%

Q: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4 % interest for 10…

A: An annuity is a kind of deposit payment that an individual makes into an investment account or a…

Q: What is the present value of a $1,000 60-month annuity due, if r is 6% APR compounded monthly?

A: The time value of money is applied in the case of calculation for the present value of the annuity.…

Q: A five-year annuity of 10 $7,500 semiannual payments will begin 10 years from now, with the first…

A: To calculate the value of the annuity at different time points, we can use the present value formula…

Q: what is the value of the annuity today

A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…

Q: What is the future value of an annuity of 15 deposits of $6407 at the end of each year with a…

A: Step1: Calculating the future value of annuity. We have,Future value of annuity = P [(1+r)n – 1] /…

Q: Calculate the present value of annuity with 30 annual payment which pays an initial payment of…

A: Present value is the equivalent value today of the future money to be received in the future based…

Q: What is the value today of $1,200 per year, at a discount rate of 6 percent, if the first payment is…

A: compound interest method:   in compound interest, interest on interest added so it's yield the good…

Q: nuity with yearly payments of 674 that’s compounded annually with an interest rate of 5.4% will be…

A: Future value of the annuity includes the amount being deposited over the period of time and amount…

Q: What is the future value of an annuity with annual cashflows of $4,000 for 38 years? The interest…

A: Future value of an annuity is the future value of stream of same annual cash flows which takes place…

Q: what is the present value of a loan tbat calls for the payment of $500 per year for six years if the…

A: Present value of loan is the amount of loan which has been taken by the borrower from the lender.…

Q: What is the present value of a $1,000 60-month annuity, starting 6 months from today, if r is 6% APR…

A: Present Value of Deferred Annuity refers to the concept which dictates the discounted value of a sum…

Q: What are the future value and present value of an annuity of 1300 payable monthly for 30 payments,…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

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.