I need help with the ((((red)))) check marks 8. Present value of annuities and annuity paymentsThe present value of an annuity is the sum of the discounted value of all future cash flows.You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatestpresent value (PV)? Assume that all annuities earn the same positive interest rate.O An annuity that pays $1,000 at the end of each yearO An annuity that pays $500 at the beginning of every six monthsO An annuity that pays $500 at the end of every six monthsO An annuity that pays $1,000 at the beginning of each yearYou bought an annuity selling at $11,635.16 today that promises to make equal payments at the beginning of eachyear for the next four years (N). If the annuity's appropriate interest rate (I) remains at 5.00% during this time,O39 06.25D 3125. 0You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in four equal annual payments. The645 31.23®6399.34then the value of the annual annuity payment (PMT) isfirst payment on the lottery jackpot will be made today. In present value terms, you really won-assuming annual interest rate of 5.00%.37,713,593.3® 32,578,420.J639,599,273.43831,027,066 91

We need to calculate payment per year and present value An annuity is a periodic payment

You bought an annuity selling at $11,635.16 today that promises to make equal payments at the beginning of each year for the next four years (N). If the annuity's appropriate interest rate (I) remains at 5.00% during this time, © 39 06. 25 D 3125. 0 A45 31.33 O6399.34 then the value of the annual annuity payment (PMT) is You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in four equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won -assuming annual interest rate of 5.00%.

You bought an annuity selling at $11,635.16 today that promises to make equal payments at the beginning of each year for the next four years (N). If the annuity's appropriate interest rate (I) remains at 5.00% during this time, © 39 06. 25 D 3125. 0 A45 31.33 O6399.34 then the value of the annual annuity payment (PMT) is You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in four equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won -assuming annual interest rate of 5.00%.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 7Q

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