What is the present value of an ordinary annuity of 2,200 per year for 15 years discounted back to the present at 16 percent?

Q: valued at $15000. What is

A: To find the annual interest rate for the annuity, we can use the present value formula for an…

Q: What amount is required to purchase an annuity that pays $7000 at the end of each quarter for the…

A: The term "annuity" refers to a contract created and offered by financial institutions with the goal…

Q: An annuity due which pays 100 per month for 12 years has a present value of 7,908.   Calculate the…

A: We need to use RATE function in excel to calculate annual effective interest rate.The formula is:…

Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.

A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…

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: What is the Present Value of a 3-year ordinary annuity of $100 at 5%?  For clarity, the annuity pays…

A: present value of ordinary annuity formula: PVA=A×1-11+rnrwhere,A=annual paymentr=interest…

Q: what is the future value of an ordinary annuity of 2,200 per year for 15 years compounded at 16…

A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.

Q: What is the present value of perpetuity of $100 per year if the appropriate discount rate is 7…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: Find the present value of the ordinary annuity with annual payment of $400 per year for 10 years at…

A: The ordinary annuity is a series of payments made at the end of each period with equal interval of…

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

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 $4,000 paid each year forever, assuming a discount rate of 7% and the…

A: The formula to calculate present value of perpetuity isPV of perpetuity=Cash flow/Discount rate

Q: If the present value of an ordinary, 6- year annuity is $7,200 and inter present value of the same…

A: In ordinary annuity there are payments at the end of period only and in annuity due payments are at…

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: Find the present value of an ordinary annuity with deposits of $11,055 semiannually for 10 years at…

A: An annuity's present value is the current value, discounted at a certain rate, of a series of future…

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

Q: Suppose an annuity at 5% compounded semi-annually will pay $5000 at the end of each 6-month period…

A: The annuity refers to the series of regular payments that last for a specific period of time. The…

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

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: What is the present value of an annuity of $6,000 to be received at the end of each of the next…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

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: If the present value of an ordinary, 6-year annuity is $9,400 and interest rates are 9.5 percent,…

A: Time value of money is the concept widely used by the management to determine the worth of money…

Q: If the present value of an ordinary, 5-year annuity is $6,400 and interest rates are 11 percent,…

A: Present value of an ordinary, annuity = $6,400 Time Period = 5 Years Interest Rate = 11%

Q: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: Using The Future value function in excel

Q: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What is the price of a perpetuity that pays $50 annually and the required rate of return is 6%?

A: In this question we need to compute the price of a perpetuity.

Q: What are the annual cash flows (in $) of an annuity for 19 years, which costs $48,783 today, if the…

A: The sequence of periodic payments or receipts that are made as part of an annuity contract over time…

Q: An annuity pays $13 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: The future value is the value of the annuity payments at the end of the annuity term.

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: What is the future value of a $50 annuity payment over 20 years if the interest rates are 6%?

A: In the present question we require to calculate the future value from the following details: Present…

Q: Find the future value at the end of Year 12 of an annuity that pays $7,500 per year for 12 years…

A: Using excel FV function

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: What is the present value of an annuity of $6,000 to be received at the beginning of each of the…

A: Present Value: Present value refers to the current value of future sum of money in lump sum or in…

Q: What is the present value of a perpetuity of $17 per year growing at 2 percent per year with a…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…

Q: An annuity pays $15 per year for 60 years. What is the future value of this annuity at the end of…

A: The future value function or concept can be used to determine the future value of a present sum or…

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…

Q: Find the present value of an ordinary annuity which has payments of $1400 per year for 11 years at…

A: Annual payment (P) = $1400 Interest rate (r) = 6% Number of annual payment (n) = 11

Q: What is the future value of general annuity of P48,000 per annum, for 5 years, at 15% interest…

A: Annual payment (P) = P48,000 Number  of annual payments (n) = 5 Years Interest rate (r) = 15% Number…

Q: What is the future value of an annuity due that pays $550 per year for 18 years? Use an annual…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: (Present value of a perpetuity) At a discount rate of 13.00%, find the present value of a perpetual…

A: The objective of the question is to calculate the present value of a perpetuity at two different…

Q: If the future value of an ordinary, 7-year annuity is $9,900 and interest rates are 9.0 percent,…

A: Given, Future Value = $9,900 Interest Rate = 9.0% Term = 7 years Formula: Future value of annuity…

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.