What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5%7 $16,576 $17,449 O $18,367 O $19,334 $20,352
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- What is the PV of an ordinary annuity with 5 payments of $3,900 if the appropriate interest rate is 4.9%? a. $20,455.50 b. $19,858.66 c. $16,931.74 d. $17,761.39 e. $13,861.39What is the PV of an ordinary annuity with 10 payments of $6,600 if the appropriate interest rate is 5.5%? Select the correct answer. a. $49,766.03 b. $49,754.23 c. $49,771.93 d. $49,760.13 e. $49,748.33What is the PV of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%? Group of answer choices $16,806 $17,690 $18,621 $19,601 $20,633
- What is the PV of an annuity due with 5 payments of $5,700 at an interest rate of 6.1%? a. $23,945.30 b. $27,940.90 c. $25,405.96 d. $29,645.30 e. $19,705.96s/d/e/1FAlpQLSfgr9AkfTTNtEDdijdlH8qi7BUKNWLBInw/rS 4ywgwjmAsw/formRespons O ) $3,802 d) $852. e) None of the above: 5. What is the future value of a b year ordinary annuity with annual payments of $200, evaluated at a 15 per O a) $ 670 44 O Di S 842.91 O as1.522 64 G) S1.348 48 6. What is the present value of a7-vearordjnaryennu payments of $300. evaluated at a 10 percentinterestrate? O a S 670 430.02 100,000 9.954003994 RI9.954 9941 9.9003994 Hence, the amount of yearly withdrawal is P10,046.21.1 PERIODIC PAYMENT R OF AN ANNUITY: Periodic payment R can also be solved using the formula for amount Future value F or Present Value P of an annuity. mt 1+ F = R R = mt mt P. P R R = 1-(1+) Note: j-= n = mt where R is the regular payment P is the present value of an annuity F is the future value of an annuity j is the interest rate per period n is the number of payments What have I have learned... Complete the sentence below. Write your answers on a separate sheet of paper. 1. is a sequence of payments made at equal (fixed) intervals or periods of time. 2. is the sum of present value of all the payments to be made during the entire term of the annuity. 3. is an annuity where the payment interval is the same as the interest period. 4. is a type of annuity in which the payments are made at the end of each payment interval. is the sum of future values of all payments to be made 5. during…
- A.What is the PV of an annuity due with 5 payments of $4,200 at an interest rate of 5.5%? a. $16,651.03 b. $18,921.63 c. $21,570.66 d. $19,110.85 e. $22,138.31 B. What is the PV of an ordinary annuity with 5 payments of $8,500 if the appropriate interest rate is 4.5%? a. $38,434.25 b. $31,717.58 c. $37,314.80 d. $44,031.47 e. $29,851.84What is the PV of an ordinary annuity with 10 payments of P2,700 if the appropriate interest rate is 5.5%? * P19,334 P18,367 P20,352 P16,576 P17,449AFAlpOLSfgr9AkfTTNtEDdijdlH8gi7BUKNWL3lnwTIS 4ywgwjmAsw/formResponse O d) $1,348.48 O e) None of the above 6. NWhat is the present value of a 7-vear ordinary annuity with annual payments of $300. evaluated at a 10 percent interest rate? O a $670 43 b)S 842.91 自
- What is the PV of an annuity due with 5 payments of $4,500 at an interest rate of 5.5%? $20,921.92 $21,544.20 $20,527.81 $20,976.98 $20,273.18Present value of an annuity Consider the following cases. Case ◄AUA- E Amount of annuity $ 12.000 55.000 700 140.000 22.500 Interest rate 12 20 5 10 Period (years) a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity, mu 9 7 b. Compare your findings in parts al 1) and a(2). All else being identical, which of annuity-ordinary or annuity due-is preferable? Explain why. Personal Finance Problem Tume value-Annuities - Marian Kirk wishes to select the better of two 10-year annuines, C and D. Annuity C is an ordinary annuity of $2,500 per year for 10 years. Annuity D is an annuity due of $2,200 per year for 10 years. delen future value of both annuities at the end of year 10, assuming thatI P5-20 Present value of an annuity Consider the following cases. Case Amount of annuity Interest rate Penod lyears) $12,000 55,000 A 12 200 20 140,000 22,500 10 a. Caleulate the present value of the annuity nssuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, whih of annuity ordinary or annuity due-is preferable? Explain why.