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: How much should be invested each year for 10 years to provide you with $7000 per year for the next…

A: Annuity means no. of payments which are equal in size and made at equal length of intervals. Person…

Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…

A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

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: You are set to receive an annual payment of $10,900 per year for the next 15 years. Assume the…

A: First we need to use future value of ordinary annuity( payment due at end of period) formula to…

Q: You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments…

A: Future value refers to the value of the current asset at some future date affected by interest and…

Q: re buying a R150 000 house for 10% deposit, with the rest financed by a bank loan a 1, compounded…

A: In this we have to calculate the present value FACTOR monthly and get monthly payments.

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: You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…

A:

Q: A loan of P30,000 is to be repaid monthly for 5 years that will start at the end of 4 years. If…

A: Present value of deferred annutiy Present value of deferred annuity refers to the annuity which…

Q: If the interest rate on an account is 11.5% compounded annually, approximately how many years will…

A: The calculation table for the compounding is attached below.

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: You can invest $5,000 today in an account that earns an annual interest rate of 8%. Using the…

A: In the given case, we have provided the current investment or initial investment, annual interest…

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: You expect to receive P1,000 at the end of each of the next 3 years. You will deposit these payments…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

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: A one-year investment is certain to pay £650. If the annual interest rate is 6%. * Round your…

A: Present Value refers to the method or technique which calculates the value of cash flows today,…

Q: What is the future value of 1,000 over five years if 8% interest is paid annually ?

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: What is the present value of monthly payments of $1000 for 5 years followed by monthly payments of…

A: To compute the present value of the payments we need to discount these cash flows. The sum of these…

Q: In one year you will receive 1800. In two yeara you will receive 1, 900. The discount rate is 4%.…

A: PV = FV / (1 + r)nWhere:PV is the present valueFV is the future valuer is the discount rate (here,…

Q: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

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: You expect to receive a one-time payment of $1,000 in 10 years and a second payment of $1,500 in 15…

A: Here, One-time payment = $1,000 in 10 years Second payment = $1,500 in 15 years Annual interest rate…

Q: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

Q: You plan to buy a car for R250 000, you will give a deposit of R25000. The remainder of the cost…

A:

Q: You deposit $5000 each year into an account earning 6.8% interest. How much will you have in the…

A: Given: Yearly deposit = $5000 Interest = 6.8% annually Time =15 years

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: If you invest $154 at an interest rate of 6% (annual rate) compounded annually, how much interest…

A: Interest earned is the interest which is applied on the principal. It is the interest for using…

Q: If you deposit $1000 today in an account earning 10% APR compounded annually, and you deposit…

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

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: suppose you obtain a $3000 t-note with a 3% annual rate, paid quarterly, wiht maturityin 5 years.…

A: For t-note interest paid is simple interest . Therefore, interest can be calculated using the…

Q: You borrow $50, 000 for 5 years. This is an amortized load, meaning that payments are the same each…

A: Loan amount= $50, 000Number of payments= 5 years or 60 months APR=12%

Q: If you invest $1,000 in an account that pays an annual interest rate of 6.4%, compounded monthly,…

A: Computation:

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: You are set to receive an annual payment of $11,000 per year for the next 16 years. Assume the…

A: An annuity is a type of security that pays a periodic amount over a period of time. When the…

Q: Suppose we invest £100,000 at a semi-annually compounded interest rate of 6% for 1 year. What are…

A: Net ROI (return on investment) is calculated by subtracting the initial amount of investment from…

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.