What is the present value or price of a 10 year $20,000 annuity with an interest rate of 5% $1.9M $3M $2.1M $1M

Q: Present Value of an Annuity What is the present value of a $1,600 annuity payment over 6 years if…

A: An annuity refers to a series of cash flows occurring at regular periodic intervals. Here the amount…

Q: What is the present value of a $700 perpetuity if the interest rate is 5%? If interest rates doubled…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

Q: You have a $50,000 twenty year growing annuity earning 8 percent interest compounded annually.…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: What is the future value annuity due of RM32,000 for the next 10 years with a discount rate of 8%?…

A: Amount of Annuity = RM 32,000 Years(n) = 10 Interest Rate(r) = 8% Future Value of Annuity = RM…

Q: What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?

A: Details given are : Annual cashflow = $300 time period = 5 years Interest rate = 8% We require to…

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: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…

A: Future value of an annuity refers to the value of a periodic payment or accumulated amount after…

Q: Present Value of an Annuity-If the interest rate is 12%, how much would you have to put in the bank…

A: Interest rate = 12%Term = 5 YearsAnnual payment = $100

Q: Find the periodic payment needed to attain the future value of the annuity. Round your answer to the…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: s: Solve edch fhe follOwing Find the present value and the amount of Future value of the general…

A: Present Value/Future Value: It is  the current value of a future sum of money at a  specified rate…

Q: An annuity of $1,000 at the end of each year lasts in perpetuity. However, we do not have access to…

A: A perpetuity is an annuity stream of cash flows that continues forever.

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 value today of receiving $2,506.00 per year forever? Assume the first payment is made…

A: Present value refers to the discounted value of the future cash flows at the discounting rate for…

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: 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: If you put up $30,000 today in exchange for a 6.50 percent, 15-year annuity, what will the annual…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: if the annual rate is 5% and the annual infinity (forever) payment is $200, what is the present…

A: A perpetuity is a security that pays for an infinite amount of time.The present value of a…

Q: P= P1,000 r= 5% t=5 years m=2 What is the present value of an annuity due?

A: Payment (P) = P 1000 r = 5%, m = 2, hence semiannual compounding Effective interest rate (r) = (1 +…

Q: How much would you pay today for a perpetuity of $ 1,000 per year if the prevailing interest rate is…

A: Perpetuity  is a type of security where, you pay money for an infinite amount of time. It keeps on…

Q: Present Value of an Annuity Due if the present value of an ordinary, 3-year annuity is $5,200 and…

A: Present value of Annuity is the future value of current cash flow or future value of the Annuity…

Q: The present value of an annuity stream of $100 per year is $920 when valued at a 10% rate. By…

A: The annuity in which payments that are made at the beginning of each period, rather than the end, it…

Q: Compute the present value (PV) of an annuity that pays $320 forever if the opportunity cost is 8 per…

A: Given details are : Annual cashflow = $320 Opportunity cost = 8% = 0.08 From above details we…

Q: 10) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV)…

A: Solution:- When an equal amount is paid each period, it is called annuity. Present value of annuity…

Q: An annuity is set up that will pay $1,700 per year for ten years. What is the present value (PV) of…

A: The objective of this question is to calculate the present value of an annuity. An annuity is a…

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

Q: Evaluate ordinary annuity Assume monthly payouts - round your answer to nearest cent. M = $50 R =…

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

Q: (Present value of an annuity) What is the present value of the following annuities? a. $2,400 a year…

A: Present value of annuity is calculated by discounting all the future cash flows at a given discount…

Q: find the present value of 3 year, 500 annuity at 4%

A: Solution Given Time period (n) 3 year Annuity 500 Rate of interest 4%…

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: Present Value of an Annuity Estimate the present value of an annuity if payments are $1300 monthly…

A: Annuity is when the payments are for fixed period of time and payments are made at uniform and…

Q: Future and present value of an annuity Find the future and present value of a 20-year ordinary…

A: Fixed Annuity: In a fixed annuity, the payments are predetermined and remain constant throughout the…

Q: How much more is a perpetuity of $1,500 worth than an annuity of the same amount for 20 years?…

A: Solution:- When an equal amount is received each period at end of period, it is called ordinary…

Q: If you put up $29,000 today in exchange for a 7.25 percent, 13-year annuity, what will the annual…

A: An annuity refers to a payment series that is provided in exchange for a lump sum payment. It is…

Q: if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present…

A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…

Q: What is the future value of an $800 annuity payment over 15 years if the interest rates are 6…

A: In this question we require to calculate the future value of annuity. Annuity amount (PMT) = $800…

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 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: You purchase a home for $207,000 that you expect to appreciate 8% in value on an annual basis. How…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: What is the future value of an annuity due if your required return is 10%, and annual payments are…

A: The time value of money is a core principle in finance, asserting that a given amount of money today…

Q: Solve for the FVA or PVA value of the following annuity DUEs; Solve for… Payment amt #Pmts/year…

A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…

Q: The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in…

A: Here,Question 1:ParticularsValuesFace value of the bond (FV) $  5,000.00Current price of the bond…

Q: $11,000 annually at 5% for 10 years.

A: The present value of annuity can be calculated by using the EXCEL PV function. The same is as…

Q: Compute the present value (PV) of an annuity that pays $320 forever if the opportunity cost is 10…

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

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.