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%.
Q: Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $827 is deposited…
A: Calculate the future value as follows:MS-Excel --> Formulas --> Financials --> FV
Q: A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years.…
A: Using excel PV function
Q: Find the present value of an annuity if $2,200.00 is paid to you at the end of every 2 months for 3…
A: Present value is the current worth of future payments to be received from the investment. Formulas:…
Q: If you make quarterly deposits of $415.00 into an ordinary annuity earning an annual interest rate…
A: Future value of an annuity depends on the regular payments and interest rate applicable on the…
Q: You just purchased an annuity that will pay you $24,000 a year for 25 years, starting today. What…
A: Annual payment (P) = $ 24000 Number of annual payments (n) = 25 Interest rate (r) = 8.5%
Q: A certain annuity pays 80.00 at the end of every 3 months. If the present value of the annuity is…
A: Periodic annuity payment (A) = 80 Payment frequency = quarterly Let r = Quarterly rate n = Total…
Q: What will be the value in your account at the end of Year 30?
A: Future Value of Annuity: It represents the future worth of the annuity payments made for a given…
Q: What is the present value of the annuity if it is paid over three years (starting immediately)?
A: For the first year, payment = $15,000 For second year = $15,000 x 0.970 = $14,550 For third year =…
Q: A 16-year annuity pays $1,900 per month, and payments are made at the end of each month. The…
A: The question is based on the concept of present value of future annuity payments . Annuity payments…
Q: Mark Ventura has just purchased an annuity to begin payment two years from today. The annuity is for…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: Suppose that you have a plan to pay RO 0592 as an annuity at the end of n month for 20 years in the…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: You bought an annuity selling at $17,390.08 today that promises to make equal payments at the…
A: Present value of annuity (PV) = $17,390.08 Interest rate (I) = 5% Period (N) = 8 Years Annual…
Q: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,060 is deposited…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: CHAR is offered an annuity that will pay P24,000 per year for 11 years (the first payment will occur…
A: Annual payment (P) = P24,000 Period (n) = 11 Interest rate (r) = 13%
Q: Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this…
A: Annuity refers to the amount of installment that is paid regularly in a specific time gap and for a…
Q: -year annuity pays $940 per month at the end of each month. For the first seven years, the nominal…
A: The more is compounding the more is the effective interest rate and more is the future value of…
Q: Recently, More Money 4U offered an annuity that pays 5.7%compounded monthly. If$1,402 is deposited…
A: MONTHLY COMPOUNDING RATE (5.7%) 0.4750% PERIOD (11*12) 132 PMT (MONTHLY DEPOSIT) 1402…
Q: Liberty mutual is selling a perpetuity that makes equal annual payments each year with the first…
A: First we need to calculate present value of our payments then payment on perpetuity is = value of…
Q: If you want to be paid from a l13 year ordinary annuity with a guaranteed rate of 3.09% compounded…
A: The annuity refers to the series of payments or receipts that last over a specific period of time.…
Q: Recently, More Money 4U offered an annuity that pays 6.3% compounded monthly. If $1,335 is deposited…
A: Amount accumulated in an account is computed as the Future value of an annuity. Interest earned is…
Q: Suppose for an annuity due, you want to have S30,000 in the bank after 20 years. Assuming you make…
A: Time value of money is a concept that helps in determining the value of future cash flows…
Q: An annuity that pays $950 at the end of each month for 18 years sells for $105,000 What was the…
A: Annuity payment each month = 950 End of month payments Price of annuity = 105,000 N = 18 years i.e.…
Q: Gary King will deposit $27500 into an account today that earns 13% per year compounded annually.…
A: Given information: Principle amount = $27,500 Rate of interest = 13% Period = 5 years
Q: An insurance settlement of $1 million must replace Trixie Eden's income for the next 45 years. What…
A: a) Since, the settlement is expected to provide an income at the end of each month, this is an…
Q: Acme Annuities recently offered an annuity that pays 5.4% compounded monthly. What equal monthly…
A: We need to use future value of ordinary annuity formula to calculate monthly deposit or payment. PMT…
Q: A perpetuity-due has annual payments. The initial payment is 326.53 and each subsequent payment is…
A: Perpetuity means infinite no. of payments which are same in size or may be grow with constant rate.…
Q: • A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What…
A: Given, Payment is $900 Interest rate is 11%.
Q: What is the present value of an annuity consisting of payments of $800 every month for 8 years, with…
A: Present value is the current worth of the amount that is deposited or received in some future date…
Q: What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be…
A: As a fist step, let's shifts ourselves to the end of t = 10 years.Annuity, A = $ 2,500; n = number…
Q: Latanya Brown established an ordinary annuity of $1,000 annually at 9% annual interest. What is the…
A: The compounding method is used to determine the future value of cash that is deposited today.
Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 7% interest…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: Lidia deposits $800 at the END of each year for 8 years in a savings account. The account pays 12%…
A: Future value is the value of an asset in the future over the years. It can be calculated as…
Q: If $312745 is used to purchase an annuity earning 5% compounded monthly and paying $3206 at the end…
A: An annuity is a series of payments, either coming to you or made by you, these have a fixed value in…
Q: A retirement account has $220,000.00 that will be used to start an annuity that earns 4.5%,…
A: The calculation is:
Q: Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest…
A: annuity due is the series of payments made at the beginning of each period in the series, periods…
Q: this annuity every month, how much is in the account after 8 years? How much of this is interest?…
A: Future Value of Annuity: It refers to the future worth of the annuity cash flows made at the end of…
Q: How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter…
A: The term perpetuity represents a series of cash that has no ends. In perpetuity, the amount of cash…
Q: Recently, More Money 4U offered an annuity that pays 5.4 % compounded monthly. If $1,634 is…
A: Computation of future value and interest earned:
Q: Robert wants to have $2,300 at the end of every three months for 8 years. The bank pays 8% interest,…
A: Here, To Find: Present value of annuity due =?
Q: Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest…
A: Semiannual interest rate = 8% / 2 = 4% Number of Semiannual periods = 4 years * 2 = 8 periods…
Q: If $82,000 is invested in an annuity that earns 5.3%, compounded quarterly, what payments will it…
A: The question gives the following information: Present value=$82,000Rate=5.3%Time period=4.5 years
Q: You deposit $9500 per quartely for 1 years at i, = 8.31 %. This fund then provides for a perpetuity…
A: Perpetual payment is an arrangement to cash flows for an infinite time period, under the perpetuity…
Q: Tiana invested in an annuity with an initial investment of P40,000 followed by deposit of P800 every…
A: We need to use future value of annuity formula and future value formula to calculate future value of…
Q: Find the future value of an annuity in 8 years if you deposit $80 at the end of each compounding…
A: Using excel FV function
Q: You just won a special lottery which will entitle you to an annual payment $45000 for 10 years, but…
A: In this we have to calculate future value FACTOR and future value.
Q: How much will be the future value of a 5-year ordinary annuity which has annual payments of $200,…
A: The question gives the following information:
Q: A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of this…
A: Future of Annuity Due = Annuity * [ { ( 1 + Quarterly rate )Number of quarters - 1 } / Quarterly…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityThe 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six months An annuity that pays $500 at the beginning of every six months An annuity that pays $1,000 at the end of each year. An annuity that pays $1,000 at the beginning of each year An ordinary annuity selling at $14,130.15 today promises to make equal payments at the end of each year for the next twelve years (N). If the annuity's appropriate interest rate (I) remains at 8.00% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $85,000,000, paid in twelve equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won…The 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the beginning of every six months O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $1,000 at the end of each year An ordinary annuity selling at $4,947.11 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity's appropriate interest rate (1) remains at 6.50% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in eight equal annual payı The first payment on the lottery jackpot will be made today. In present value terms, you really won -assuming…
- The 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each year*** This is the correct option**** An annuity that pays $500 at the beginning of every six months A. An ordinary annuity selling at $2,514.15 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity’s appropriate interest rate (I) remains at 8.00% during this time, the annual annuity payment (PMT) will be . B. You just won the lottery. Congratulations! The jackpot is $10,000,000, paid in eight equal annual payments. The…8. Present value of annuities and annuity payments The 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the beginning of every six months An ordinary annuity selling at $11,417.87 today promises to make equal payments at the end of each year for the next six years (N). If the annuity's appropriate interest rate (I) remains at 9.50% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in six equal annual payments. The first payment on the lottery jackpot will be made…8. Present value of annuities and annuity payments The 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each year An annuity that pays $500 at the end of every six months An annuity that pays $500 at the beginning of every six months You bought an annuity selling at $14,112.74 today that promises to make equal payments at the beginning of each year for the next twelve years (N). If the annuity's appropriate interest rate (1) remains at 11.00% during this time, then the value of the annual annuity payment (PMT) is You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in twelve equal annual payments. The first payment on the lottery…
- 8. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. A. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each year An annuity that pays $500 at the beginning of every six months B. An ordinary annuity selling at $2,514.15 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity’s appropriate interest rate (I) remains at 8.00% during this time, the annual annuity payment (PMT) will be . C. You just won the lottery. Congratulations! The jackpot is $10,000,000, paid in eight…5. Present value of annuities and annuity payments The 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the beginning of every six months An annuity that pays $1,000 at the end of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year You bought an annuity selling at $2,867.74 today that promises to make equal payments at the beginning of each year for the next twelve years (N). If the annuity's appropriate interest rate (1) remains at 9.50% during this time, then the value of the annual annuity payment (PMT) is $375.00 You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in twelve equal annual payments. The first payment on the…8. Present value of annuities and annuity payments The 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the beginning of every six months An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each year An ordinary annuity selling at $10,538.38 today promises to make equal payments at the end of each year for the next twelve years (N). If the annuity’s appropriate interest rate (I) remains at 6.50% during this time, the annual annuity payment (PMT) will be . You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in twelve equal annual payments. The…
- 5. Present value of annuities and annuity payments The 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annuity that pays $1,000 at the end of each year An annuity that pays $500 at the beginning of every six months You bought an annuity selling at $17,390.08 today that promises to make equal payments at the beginning of each year for the next eight years (N). If the annuity’s appropriate interest rate (I) remains at 5.00% during this time, then the value of the annual annuity payment (PMT) is . You just won the lottery. Congratulations! The jackpot is $60,000,000, paid in eight…You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annuity that pays $500 at the beginning of every six monthsSuppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)