You are paid £4,000 annually for 6 years, with the first payment due in one year and the last payment due in 6 years. What is the present value of all these payments using an interest rate of 2%?

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

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: 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: You require an annual return on your financial investments of 8% per annum. What would you be…

A: Semi annual payment (P) = £1,000 Annual interest rate = 8% Semi annual rate (r) = 8%/2 = 4% Period =…

Q: If you wish to withdraw P20,000 after 5 years at the interest rate of 5% compounded annually, how…

A: Amount to withdraw (A) = P 20000 n = 5 years r = 5%

Q: If you want to be paid from a 14 year ordinary annuity with a guaranteed rate of 2.208% compounded…

A: In finance, the term annuity represents a sequence of cash flows that contain a fixed payment at…

Q: the discount rate is 7.6%, what would you be willing to pay for receiving a payment of $700 eve

A: Value of any annuity is the present value of cash flow from the annuity based on time and interest…

Q: Suppose you are going to receive $5,000 per year for 8 years. The appropriate interest rate is 10…

A: PMT = $5000r =0.10n=8PV of ordinary annuity=?PV of annuity due=?

Q: What is the present value of a stream of payments where the Year 1 payment is $120,000 and the…

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

Q: what is the present value

A: The time value of money means that the amount of money received in the present period will have…

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 $800 per year annuity at an interest rate of 12%? Hint: the future…

A: An annuity refers to a payment plan that provides periodic payments in exchange for a lump sum…

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 ten year annuity whose payment will be $20,000 next year and then…

A: Time = t = 10 YearsPayment = p = $20,000Growth Rate = g = 3%Discount Rate = r = 6.4%

Q: You are paid £3,500 annually for 8 years, with the first payment due in one year and the last…

A: Present value is the current worth of a future payment or stream of payments, taking into account…

Q: The effective rate of interest is 6% per annum. An annuity is payable annually in arrears for 25…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: An annuity offers to pay £8,700 per year for 20 years, and the nominal annual bank interest rate is…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Calculate the present value of this infinite future payment of $100

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: hat is the present value of a perpetuity paying $1500 each year, if the effective annual interest…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: What is the present value of $200 per year, at a discount rate of 18.25 percent, if the first…

A: Annuity Amount is $200 Discount Rate (r) is 18.25% First Payment is received is 6 years from now…

Q: What is the value today of $1,400 per year, at a discount rate of 10 percent, if the first payment…

A: First, we calculate the present value in year 5 of the annuity and then once again calculate the…

Q: Under what interest rates would you prefer a perpetuity that pays $2 million a year to a one- time…

A: This question require us to compute the interest rate in case of a perpetuity.

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O,…

A: The payment flow which continues for a definite time period and terminates after lapse of time…

Q: annual payments of $1,500 per year, at a disco

A: PV = PMT * [(1 - (1 + r)^(-n)) / r]Where:PV is the present value of the annuityPMT is the amount of…

Q: An annuity offers to pay £9,700 per year for 20 years, and the nominal annual bankinterest rate is…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: What iS the fair market price today for an annuity that pays you $350 at the beginning of each month…

A: Annuity refers to the series of payment at regular interval for certain period.

Q: You are given an annuity-immediate paying 14 for 14 years, then increasing by one per year for 8…

A: An annuity's present value is the current value of all of its future cash flows discounted, using a…

Q: You are paid £2,500 annually for 6 years, with the first payment due in one year and the last…

A: Present value = Annuity * PVA of 1

Q: The present value of an annuity is payable for 4 years, with the first payment at the end of 10…

A: An annuity is a series of payments for a certain period of time and at a certain rate of interest.…

Q: What is the present value of all these payments using an interest rate of 4%?

A: We have to calculate the present value of the cash flow in all these 10 years In question, cash flow…

Q: Find the present value of a 5-year annuity due if the annual payments are $600 and the interest rate…

A: Annuity due-Payments are made at the beginning of each period.Ordinary annuity- Payments are made at…

Q: What is the value today of $1,200 per year, at a discount rate of 6 percent, if the first payment is…

A: compound interest method:   in compound interest, interest on interest added so it's yield the good…

Q: You expect to receive $50,000 from your superannuation in 3 years from today. If the interest rate…

A: Please refer to the image below

Q: What’s the present valu

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: is the annual effective rate of interest earned on

A: The effective interest rate is considering effect of the compounding of the interest rate and this…

Q: What is the present value of a 5 year, €7,000 annuity assuming a discount rate of 8%?

A: The present value of an annuity is a financial concept used to determine the current value or worth…

Q: Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11…

A: Present value is the estimation of the current value of future cash value which is likely to be…

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.