What is the present value of a 3-year annuity of $250 if the discount rate is 6%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)     Present value $   668.25     b. What is the present value of the annuity in (a) if you have to wait 2 years instead of 1 year for the first payment? (Round your intermediate and final answers to 2 decimal places.)

Q: Suppose you are going to receive $13,300 per year for five years. The appropriate discount rate is…

A: Using excel PV and FV for calculating present value of annuity and future value of annuity

Q: a. If the one-year discount factor is 0.9200, what is the one-year interest rate? (Do not round…

A: Given:

Q: A company wants to determine how much it should pay to purchase a particular ordinary annuity today.…

A: Formula for finding PV  PV=Payment per month*[{1-{1+interest rate)^(-Time period)}}/interest rate]…

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

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: What is the PV of an ordinary annuity with 10 payments of $7,900 if the appropriate interest rate is…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: How much would be in your savings account in seven years after depositing S290 today if the bank…

A: Future value is the value of current cashflow compounded at specified rate to future date. formula:…

Q: Assume you deposit $5,400 at the end of each year into an account paying 10.5 percent interest. a.…

A: We will have to use the following formula to calculate the future value of an ordinary annuity:…

Q: Find the future value of an ordinary annuity of $500 paid quarterly for 8 years, if the interest…

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

Q: How much more money is required to fund an ordinary perpetuity than a 25-year ordinary annuity if…

A: Effective Annual rate: It is  the interest rate on loan/investment  restated from the nominal…

Q: What is the difference in present value between a perpetuity that pays $500 per year and an ordinary…

A: Annual payment (A) = $500 n = 23 years for ordinary annuity r = 7%

Q: ou are offered an annuity that will pay R17,000 per year for 7 years (the first payment will be made…

A: Given: Annuity amount = R17,000 Year = 7 Discount rate = 11%

Q: What is the value today of an annuity of $5,900 per year, with the first cash flow received three…

A: According to the information provided, the first cash flow is three years from today and the last…

Q: If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent,…

A: Given: Particulars Amount Present value(PV) $6,500 Rate 8% Years(NPER) 7

Q: How much money would you have to deposit today in order to have $5,000 in three years if the…

A: Present Value = Future Value / ( 1 + discount rate )years

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: Here, To Find: Future value of an ordinary annuity =? Future value of an annuity due =?

Q: annuity

A: Annuity can be defined as series of payments which are made at regular intervals. Examples of…

Q: A student needs $6000 every six months to pay living expenses while at college. It will take him 8…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: What is the present value of a 3-year annuity of $180 if the discount rate is 7%?  . What is the…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: much of the value of the account can be attributed to the interest earned? 5)You want have $12,000…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An annuity offers to pay £8,700 per year for 20 years, and the nominal annual bank interest rate is…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: What is the future value of a $500 annuity payment over four years if interest rates are 8 percent?…

A: Calculate the future value as follows:

Q: 1. You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized…

A: " Since this question contains multiple parts, we will answer only the first part for you. Kindly…

Q: What is the future value of an 11%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: Formula: Future value of Annuity = P x [ ( 1 + R )N - 1 ] / R N = Number of years R = Rate of…

Q: Answer the following question correctly refer to the given problem below and show your Complete…

A: A deferred annuity is a type of annuity that starts after a particular period of time and then…

Q: What is the present value of an annuity of $7,100 per year, with the first cash flow received three…

A: Calculation of Present Value of Annuity:The cash flow is received in the third year.The present…

Q: An annuity-immediate pays $40 per year 14 years, then decreases by 2 per year for nine years. And an…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: In an attempt to have funds for a down payment, Jan Carlson plans to save $3,600 a year for the next…

A: Future value = Present Value * PVAF(rate, period)

Q: uppose you're offered the following three accounts to invest  $10,000  for  20  years:  16%  simple…

A: Under simple interest, interest is only computed on principal amount. Under compound interest,…

Q: a. What is the present value of a 3-year annuity of $110 if the discount rate is 5%? (Do not round…

A: Annuity means a contract in which the financial institution pays an amount that gives the fixed…

Q: What is the present value of a 3-year annuity of $280 if the discount rate is 6%? (Do not round…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: What is the future value of an 8%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: Interest rate (r) = 8% Annual payment (P) = $ 350 Number of annual payments (n) = 5

Q: f you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash…

A: Present value (PV) = $41000 Interest rate (r) = 5.1% Number of annual payments (n) = 15

Q: For each of the following situations, identify (1) the case as either (a) a present or a future…

A:

Q: The present value of an annuity is payable for 4 years, with the first payment at the end of 10…

A: An annuity is a series of payments for a certain period of time and at a certain rate of interest.…

Q: What is the future value of a $890 annuity payment over six years if interest rates are 10 percent?…

A: Annual payment (P) = $ 890 Annual interest rate (R) = 10% Period (N) = 6 years

Q: If the future value of an ordinary, 6-year annuity is $5,900 and interest rates are 7.5 percent,…

A: Calculate the future value of annuity due as follows: Future value of annuity due = Future value…

Q: d. Calculate the future sum of $1,000, given that it will be held in the bank for 5 years earning an…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Marie bought a laboratory equipment with P25,000 down payment plus 18 moths monthly payment of…

A: The Present Value of an annuity is the present value of a series of cash flows at a certain arte of…

Q: Can you calculate the equivalent annual annuity of Project A? .. Assume the discount rate is 5%.…

A: Discount rate = 5% Year Cash flow 0 -199794 1 49653 2 48712 3 55726 4 79174 5 53675…

Q: This question consists of four main parts. When performing the calculations, keep as many decimal…

A: The future value of annuity is the sum of a series of payments received at a fixed time in the…

Q: You will require $650 in 5 years. If you earn 5% interest on your funds, how much will you need to…

A: Present Value(PV) is current value of amount due to paid or receive in future that is computed by…

Q: Keith has always dreamed of opening a café by the seaside. He decides he will save to help open the…

A: Calculate FVAF as below: FV=PMT1+imt×m-1imwhere, i=interest ratem=compunding factort=time period…

Q: What is the future value of a 7%, 5-year ordinary annuity that pays $650 each year? Do not round…

A: Interest rate (r) = 0.07 Annuity period (n) = 5 years Annual payment (A) = $650 Future value = FV…

Q: Which is a better way to invest $7,000 if the concern is simply the future value: a 2-year…

A: Option 1 - Investing $ 7000  for 2 years at 2.2% quarterly Option  2- Investing divided $ 7000 in…

Q: You just won a special lottery which will entitle you to an annual payment $45000 for 10 years, but…

A: In this we have to calculate future value FACTOR and future value.

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.