What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year? Use a nominal rate of 8.00%. O $10,625 O $10,952 O $10,241 O $9,133 O $9,004
Q: Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12%…
A: Data given:: A=P1000 i=12%/2 = 6% Period=n= 20 Formula to be used : F=A * ((1+i%)n -1) / i%
Q: Find the present value of a perpetuity that pays $2,000 per year and the interest rate is 10%.
A: We are given following details : Annual cash flow in perpetuity = $2000 Interest rate = 10% We need…
Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…
A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…
Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 10% compounded…
A: A perpetuity is an annuity that gives payments but has no maturity period.
Q: If money is worth 8% compounded quarter ly, determine tne present value of the following: a. An…
A: Discounting is a technique which is used to compute the PV of future cashflows by using an…
Q: The present value of an annuity of “Y" pesos payable annually for 8 years, wit the first payment at…
A: We can use the concept of time value of money here. As per the concept of time value of money the…
Q: Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest…
A: An Annuity Due is a stream of regular periodic payments made at a beginning of period for a…
Q: Find the future value of an annuity in 10 years if you deposit $125 at the end of each compounding…
A: An annuity is a type of agreement or a contract between an individual and an insurance company in…
Q: The present value of a $1,000 per year perpetuity at an annual rate of 10% is $10,000. What is the…
A: Answer:
Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
Q: find the present worth of a perpetuity of p25000 payable quarterly if money is worth 5% compounded…
A: Perpetuity refers to series of equalized payments that are made either at start or end of definite…
Q: 1. The annual rent of a perpetuity is $1000, payable in semi-annual stallments. Find the present…
A: The present value is the present worth of the amount that will be paid or received at present or…
Q: What's the present value of a perpetuity that pays $1,700 per year if the appropriate interest rate…
A: The present value of perpetuity is calculated as ratio of cash flows and the discount rate
Q: If money is worth 1.07%, determine the present value of perpetuity of P 4.489 pavable annually, with…
A: Inputs Interest Rate = 1.07% Perpetual Amount = 4489 Payments will start at end of 5 years
Q: How much invested now at an interest rate of t10% compounded annually would be just sufficient to…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: WHAT IS THE ACCUMULATED AMOUNT OF THE FIVE-YEAR ANNUITY PAYING P6,000.00 AT THE END OF EACH YEAR,…
A: Annuity is a stream of cashflows which may be constant, growing, increasing, declining or…
Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?…
A: Future Value = PV × ( 1 + r )n where, PV = Present Value = $700 r = Interest Rate = 4% n = time…
Q: IF A PERPETUITY IS WORTH P 500,600.00 AND WITH AN INTEREST OF 16.25%, WHAT IS THE ANNUITY? IF MONEY…
A: Since you have asked multiple questions, we will solve the first question for you as per policy.…
Q: What is the present value of a simple ordinary annuity if payments are made quarterly of Php 18,000…
A: An annuity is a series of regular and equal cash flows at periodic intervals. The Present Value of…
Q: 1. Find the present perpetuity of P100 payable semi-annually if money is with 4% compounded…
A: Disclaimer:- “Since you have asked multiple question, we will solve the first question for you. If…
Q: What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with…
A: Annuity is referred as the instalment paid at the regular interval for a particular period. Present…
Q: MOITAS 2. Find the present worth of perpetuity of P10,000 payable quarterly if money is worth 10%…
A: Note: As per the rules of Bartleby,in case of multiple unspecified questions only the first question…
Q: Calculate the future value of an annuity of $ 10,440 invested every year at 10.9% compounded…
A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: Money is worth 12% compounded quarterly. What is the future value of the annuity payir arterly for…
A: Future value of money grows with interest rate and period of deposit and while present value…
Q: What is the present value of ₽5,000 payable semi-annually for 10 years if money is worth 9%…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Find the present worth of perpetuity of P 20,000 payable quarterly if money is worth 10% compounded…
A: Quarterly payment (P) = P 20,000 Interest rate = 10% Quarterly interest rate (r) =…
Q: What is the present value of a perpetuity that pays $250 per year if the appropriate interest rate…
A: In the given question we are given five options regarding present value of perpetuity and we need to…
Q: Find the present value of the following annuities: 1. 100 at time 1 and increasing by 100 annually…
A: 1. Computation of present value of annuity Year…
Q: If you want to be paid from a l13 year ordinary annuity with a guaranteed rate of 3.09% compounded…
A: The annuity refers to the series of payments or receipts that last over a specific period of time.…
Q: Find the present value of a perpetuity of P15,000 payable semi-annually if money is worth 8%…
A: A perpetuity is a series of continuous payments made at regular intervals. It can also be understood…
Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…
A: PMT = 58 Period = 13 years Nominal rate of interest = 7.23% Additional amount = 1000
Q: What is the present value of an ordinary annuity of P47,000 each year for eight years assuming a…
A: Solution Concept Ordinary annuity means the annuity which is received at the end of each period…
Q: Find the present value of the ordinary annuity. Round answer to the nearest cent. Payments of $530…
A: Time value tells that money received today is of more value than that of receiving exact value later…
Q: A perpetuity pays $85 per year and costs $2,780. What is the rate of return?
A: In this question we need to compute rate of return on perpetuity from following details : Payment…
Q: A perpetuity-due has annual payments. The initial payment is 326.53 and each subsequent payment is…
A: Perpetuity means infinite no. of payments which are same in size or may be grow with constant rate.…
Q: • A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What…
A: Given, Payment is $900 Interest rate is 11%.
Q: What is the present value of a perpetuity with payments starting one year from now. The first…
A: Present value of perpetuity can be calculated by formula that cash flow of first year divided by…
Q: What is the present value of the following annuities? 70 a year for 3 -years discounted back to the…
A: Annuity referes to the payments made at regular interval. It could be ordinary annuity when payments…
Q: An annual growing perpetuity has a present value of $363,636.36 What is the growth rate (g) of this…
A: The time value of money is considered for determining the cash flows compounded and discounted…
Q: ow at 9.6%?
A: Here, P = $10,800 i = 0.096 n = 11 Now, Future Value of Annuity (FVA) is FVA=P x(1+i)n-1i…
Q: What is the future worth of P8500 deposited at the end of every month for 3 years if the interest is…
A: Future value of a present value is the value of that amount after taking into account the time value…
Q: RM 50 is deposited every month for 2 years at 12% compounded monthly. What is the future value of…
A: An annuity is a series of cash flows with a fixed payment over a specific time period. The future…
Q: What is the present value of a $1,000 ordinary annuity that earns 8% annually for an infinite number…
A: Annual payment = $ 1000 Interest rate = 8%
Q: Due and Perpetuity The value of perpetuity per year is P 10,000.00 and the annuity is P 5,000.00,…
A: Value of perpetuity = 10,000 Annual Amount = 5,000
Q: What is the future value of $100 invested in an account for eight years that earns 10% annual…
A: Formula: Future value = Present value x ( 1 + r )N R = Rate of interest N = Number of years
Q: What is the present value of a perpetuity with payments starting one year from now. The first…
A: A perpetuity is a type of security that pays a constant stream of fixed cash flows for an infinite…
Q: A 9.0%, 5-year ordinary annuity pays $270.00 each year. What is the future value of
A: Future value of annuity includes the interest and deposits made and can be calculated from the…
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- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%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%. $1,039 $946 O $882 O $990 O $873What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $4,800? a. $20.28 b. $292.96 c. $312.00 d. $156.00 e. $738.46
- What's the present value of a perpetuity that pays $2,200 per year if the appropriate interest rate is $%? O $47,960.00 $49,720.00 O $48,400.00 $44,000.00 $36,520.00 4What's the present value of a perpetuity that pays $260 per year if the appropriate interest rate is 4.9%? Group of answer choices $5,819 $6,094 $5,431 $5,056 $5,306What 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. $3,387.21
- What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $90 per year? O a. 6.47% O b. 3.04% O c. 6.08% O d. 12.95% O e. 12.16%if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present value of perpetuity? a. $15,000 b. $10,000 c. $8,000 d. $5,000A perpetuity pays $85 per year and costs $3,580. What is the rate of return? Select the correct answer. O a. 4.17% Ob. 3.27% O c.0.57% d. 2.37% O e. 1.47%
- How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.48What is the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? a) $5,788 b) $4,750 c) $5,000 d) $5,250 e) $5,513What is the future value of an ordinary annuity with annual payments of $1200 for 20 years at 10% p.a. compounded annually? Select one: a. $68,729.99 b. $48,964.86 c. $68,112.18 d. $68,279.99