Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…
A: Present value of annuity payment - it means present value of future annual equal payment made to a…
Q: What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6…
A: Given: Interest rate = 6% Future value of ordinary annuity = $2000
Q: the present value of perpetuity that pays 500,000 per year if the appropriate interest rate is 10%…
A: Present value of perpetuity = Annual amount / interest rate
Q: Suppose you are going to receive $13,500 per year for five years. The interest rate is 8.4% a. What…
A: PV of Ordinary Annuity = 13500*a<5> = 13500*(1-(1+i)^-5)/i = 13500*(1-1.084^-5)/0.084 =…
Q: What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an…
A: When the Cash Flows occurs at the end of each period, the annuity is called a Regular Annuity. In…
Q: What is the present value of the payments if they are in the form of an ordinary annuity? What is…
A: The present value can be calculated as follows : Calculations for above :
Q: What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a…
A: Future value refers to the amount of current investment after a certain time at a certain rate of…
Q: What's the future value of a 5%, 5-year ordinary annuity that pays $100 each year? If this was an…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate…
A: Given details are : Annual payment = $3800 Interest rate = 5% = 0.05 From these details we need to…
Q: What is the present value of a constant perpetuity of $17 per year if the discount rate is 10…
A: Present Value: The present value (PV) is the present sum of a series of fixed payments. The series…
Q: Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 8%. What is the…
A: A perpetuity is a payment which has no end, it continues forever. It is a stream of cash flow that…
Q: Give an annual opportunity cost of 10%,what is the future value of a $3,000 ordinary annuity for 10…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is…
A: Perpetuity is a type of annuity which has no maturity. Given data; payment = $ 250 interest rate =…
Q: What is the present value of an annuity that pays $200 per month for 10 years if money is worth 5%…
A: Present Value:It is the discounted value of cash flows of different period or sum of future money…
Q: What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10…
A: Given: Annual cash flow (A)=$1000 Number of years (n) =9 years Interest rate(r) = 10% = 0.10
Q: What's the future value of an 8%, 5-year ordinary annuity that pays $100 each year? If this was an…
A: Annual payment=100Interest rate=8%Number of years =5
Q: A. What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your…
A: A. Future value is $610.51.
Q: What is the present value of perpetuity of $100 per year if the appropriate discount rate is 7…
A: Time value of money-It is based on the concept that money earned today is worth more than similar…
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: Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per…
A: Since you have not mentioned the specific question we will just answer the first question in case…
Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…
A: present value of a perpetuity = Annual payment/Discount rate
Q: What is the present value of a 5 year annuity of ₱6000 if the discount rate is 3%?
A: Present Value of Annuity: It is the present worth of the annuity payments over a given period. It is…
Q: What's the difference between an ordinary annuity and an annuity due? Why would you prefer to…
A: Note: Interest arate is not provided,hence "i" is taken as 5% for calculation. Same formula can be…
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: What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%?
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $1,000 monthly?
A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…
Q: Suppose you put $ 450 a month for retirement into an annuity earning 4.25% compounded monthly. If…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an…
A: Calculation of future value of annuity:
Q: what's the future value of the same annuity due?
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…
Q: What is the future value of a 12%, 5-year ordinary annuity that pays $600 each year? Do not round…
A: Ordinary annuity is when the payments start at time 1, Annuity due is when the payments start at…
Q: How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter…
A: given information perpetuity that pays at the end of every quarter = $2000 interest rate = 2.5% =…
Q: Suppose you save $4,000 per year at the end of each year for 3 years and earn 5% interest per year.…
A: Annuity is no. of payments which is equal in size and made at equal interval of time. Person get…
Q: the rate of return
A: solution:- The present value of an annuity paid in perpetuity is PV = PMT/i where i is the rate.…
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: What is the future value of a three-year, ordinary $ 1,000 annuity when money is worth
A:
Q: What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an…
A:
Q: What is the present value of a 3-year annuity of $200 if the discount rate is 5%?
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: What’s the present valu
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
Q: What is the future value of an ordinary annuity with annual payments of $1200 for 20 years at 10%…
A: An annuity is a constant stream of cash flows. An ordinary annuity is one in which cash flows takes…
Q: What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an…
A: Annuity Amount= $300 each year Rate of Interest (r)= 7% Time period= 5 years
Q: What is the rate of return you would earn if you paid $3,680 for a perpetuity that pays $85 per…
A: In this question we require to compute the rate of return on a perpetuity.
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: A 10%, 4-year annuity pays $500.00 each year. What is the future value of the annuity?
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Suppose you are going to receive $10,000 per year for 5 years. The appropriate interest rate is 11%.…
A: Here, Annuity Amount is $10,000 Time Duration is 5 years Interest Rate is 11%
Q: What's the future value of a 7 percent, 5-year ordinary annuity that pays $300 each year?
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 present value or price of a 10 year $20,000 annuity with an interest rate of 5% $1.9M…
A: Present value of annuity can be calculated as: = Annuity * Present Value annuity factor (i%, n…
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- What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an annuity due, what would its future value be?What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be? Round your answers to the nearest cent.
- What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate is 5%?What's the future value of a 5%, 5-year ordinary annuity that pays $100 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the nearest cent. Future Value of an Ordinary Annuity: $ Future Value of an Annuity Due: $What's the future value of a 7 percent, 5-year ordinary annuity that pays $300 each year?
- What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?What’s the present value of a perpetuity that pays $100 per year if the appropriate interest rate is 6%?A. What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your answer to the nearest cent. B. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.
- Why would you prefer to receive an annuity due for $10,000 per year for 10 yearsthan an otherwise similar ordinary annuity?FUTURE VALUE: ANNUITY VERSUS ANNUITY DUE: What's the future value of a 5%, 5-year ordinary annuity that pays $800 each year? If this was an annuity due, what would its future value be?What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the appropriate interest rate is 5%?