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 .

Q: Calculate the future value of an ordinary annuity consisting of annually payments of $1,500 for 6…

A: An ordinary annuity is that annuity in which payments are made at the end of each period.

Q: you have a 12-year annuity paying $496 quarterly in 10 years when interest is 6.65% compounded…

A: Number of annuity payments = Number of years * time period of Payment = Number of years * Quaterly…

Q: An annuity due which pays 100 per month for 12 years has a present value of 7,908.   Calculate the…

A: We need to use RATE function in excel to calculate annual effective interest rate.The formula is:…

Q: At the end of each month for the next ten years you will receive cash flows of $75.  If the…

A: Present value of annuity = 75{1-(1+0.072)^-120}/0.072

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: What is the Present Value of a 3-year ordinary annuity of $100 at 5%?  For clarity, the annuity pays…

A: present value of ordinary annuity formula: PVA=A×1-11+rnrwhere,A=annual paymentr=interest…

Q: Find the interest rate that an ordinary annuity pays, if the annuity pays $312 per month with its…

A: An annuity pays regular and constant payments over a period of time. Here the annuity amount is $312…

Q: A 19-year annuity pays $2,050 per month at the end of each month. If the APR is 13 percent…

A: Present value refers to the current value of an asset that will be present at some future date for…

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

A: STEP 1 When assuming a specific rate of return, or discount rate, the future value of an annuity is…

Q: n annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate…

A: Present value of annuity can calculated by using Excel PV function.

Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…

A:

Q: A monthly perpetuity of $100 will start 6 months from today.  If the discount rate is 6% APR…

A: Interest rate = 6% p.a. compounding monthly I.e. 6/12 = 0.5% for one month Monthly payment amount =…

Q: An annuity pays out $20000 per year. Because of inflation, each year one dollar is worth what 0.95…

A: Annuity per year = $20,000Because of inflation, each year 1 dollar is worth what $0.95 was worth of…

Q: Find the future value for the ordinary annuity with the given payment and interest rate. PMT =…

A: PMT = $2000 r = 1.1% per annum = 0.09167% per month n = 6 years = 72 months

Q: How much would you be willing to pay today for an ordinary annuity that makes equal annual payments…

A: An ordinary annuity is the series of an equal payment that is paid or received at each week, month,…

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: An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How…

A: Annuity Due = a = $17,250Time = t = 6Interest Rate = r = 7.34%Type Payment = due = at the beginning

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

Q: (2) A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…

A: Present value (PV) is a financial concept that represents the current value of a sum of money or a…

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 set to receive an annual payment of $11,200 per year for the next 18 years. Assume the…

A: Given the following: Annual payment, A = $11,200  Period, n = 18 years  Interest rate, r = 6.1%

Q: We receive 50 beginning of each month for a term of n-years. We wish to replace it with an annuity…

A: Annuity payments are the series of the uniform constant payments that are to be received at the end…

Q: Monthly payments of $150 are paid into an annuity beginning on January 31, with a yearly interest…

A: An annuity is a financial product designed to provide a stream of periodic payments over a specified…

Q: A perpetuity pays $100 each year, with the first payment scheduled two years from now. Assume that…

A: Amount of $100 will be paid by a perpetuity and that will be started from year 2 (two year from…

Q: If you want to be paid from a 15 year ordinary annuity with a guaranteed rate of 4.277% compounded…

A: Annual payment (C) = $10,000 Period (n) = 15 Years rate (r) = 0.04277 (i.e. 4.277%) Present value or…

Q: You expect to make equal payments of $3460.00 at the end of each semi-annual period over the next 3…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Find the present value of an annuity stream in which the first payment of $268 is received 8 years…

A: Payment = p $268Time = t = 8 Number of Payment = n = 8Growth Rate = g = -4.5%Discount Rate = r =…

Q: Annuity will pay $200 at the end of each of the next 10 years and $600 at the end of each of the…

A: The Present Value of Annuity (PVA) is a financial concept that calculates the current worth of a…

Q: An ordinary annuity selling at $8,860.53 today promises to make equal payments at the end of each…

A: The annual annuity payment (PMT)= $1,065.62Present value= $7,706,517.28 Explanation:Step 1: Find the…

Q: Calculate the present value of a 30-year annuity with annual payments which pays an initial payment…

A: Computation:

Q: Present Value of Annuity. You are entering into a contract that will provide you with an income of…

A: CALCULATING THE PRESENT VALUE OF ANNUITY FORMULA:  PV=C×1-(+i)-ni WHERE C STAND FOR   CASH FLOW FOR…

Q: A 20-year annuity pays $1,200 per month, and payments are made at the end of each month. The…

A: The concept of time value of money will be used and applied here.   An annuity is a stream of…

Q: 9) A retirement gratuity of $123 900.00 is invested in annuity deferred for 10 years. The annuity…

A: The present value of an annuity is the current worth of a cash flow paid/received at the begging of…

Q: An annuity provides for 12 annual payments. The first payment is $100, paid at the end of the first…

A: The above example is the type of growing annuity. We need to find out the present value of this…

Q: A perpetuity will make a sequence of annual payments of 2800, 3000, 3200, ..., with the first…

A: A perpetuity is a type of annuity. To be more specific a perpetuity is that annuity that goes on…

Q: A 5-year annuity has a series of payments 1, 2, 3, 2, 1 with the first payment made at time t = 0…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment. It is…

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: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: Using The Future value function in excel

Q: At the end of each month for the next ten years you will receive cash flows of $50.  If the…

A: Annuity refers to the contract between an insurer and the insurance company in which a fixed…

Q: You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective…

A: Present value of annuity = $10000 Interest rate (r) = 4% Annuity amount (A) = $500 Additional amount…

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: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…

A: Required :The discounted value of these cash flows.

Q: What is the value today of a 15-year annuity that pays $630 per year? The annuity's first payment…

A: An annuity refers to a series of periodic payments exchanged in place of a lump sum payment. It is…