You consider purchasing an annuity that pays $2000/yr for 10 years. You are willing to wait until 9 years later to receive the first payment and the interest rate is 10%. How much are you willing to pay for this deferred annuity today? 2)The correct answer is 5,732.97 3)What are the steps to calculate this with a financial calculator?
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1)[Deferred
2)The correct answer is 5,732.97
3)What are the steps to calculate this with a financial calculator?
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- 4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)1. If you receive $176 each month for 12 months and the discount rate is 0.04, what is the future value? (show the process and can use financial calculator)1. If you receive $29 each quarter for 19 years and the discount rate is 0.05, what is the present value? (show the process and can use financial calculator)
- 3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present value? (show the process and can use financial calculator)Annuity Formulae Problem. only need help with d,e,f please. please type and explain You may want to use a spreadsheet to actually find the solutions to some of these problems. But make sure to write out the equations you need to solve in your answers. a. What is the present value of 15 annual payments of $100, with the first payment one year from now, if the discount rate is 0.05? b. What is the present value of 15 annual payments of $100, with the first payment right now, if the discount rate is 0.05? c. What is the present value of 15 annual payments of $100, with the first payment five years from now, if the discount rate is 0.05? d. At what discount rate would the present value of 15 annual payments of $100, with the first payment right now, be 0? e. How many annual payments of $100, with the first payment right now, would it take to be worth more than $1,000, if the discount rate is 0.05? f. What is the value of 15 annual payments which begin at $100 one year from now and increase…You have decided to start saving money for your future. What is the future value of a 17-year annuity of $2.500 per year, assuming that you make your first payment today and the interest rate is 7 percent? (Enter your answer as a positive number rounded to 2 decimal places.) Answer is complete but not entirely correct. Future value 102.497.50 L
- Simple Annuity Solve the following problems. Show a complete and detailed solution. What is asked? What are given? Formula to be used and a detailed solution. Write legibly and neatly. 1. What is the present worth of a P1000 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 15%? 2. Find the annual payment to extinguish a debt P15,000 payable for 6 years at 12% interest annually. 3. A factory operator bought a diesel generator set for P 20,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8.5% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment? 4. A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the 90% balance on monthly installment for 60 months at an interest rate of 10% compounded monthly. Compute the amount of the monthly payment. 5. What is the accumulated amount of…Your financial planner offers you two different investment plans. Plan 1 is a R3958 annual perpetuity. Plan 2 is a 12 year, R8016 annual annuity. Both plans will make their first payment one year from today. At what discount rate would you be indifferent (ie same rate) between these two plans?● An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? • What is the present value of the above if the payments are received at the beginning of each year? • If you deposit those payments into an account earning 8%, what will the future value be in 10 years? • What will the future value be if you open the account with $1,000 today, and then make the $100 deposits at the end of each year?
- An investor is considering an annuity that pays $40,000 per year for four years. 1. Assuming the first $40,000 is paid in a years time given a discount rate of 4% what should the investor pay for this annuity today? 2. Assuming the first $40,000 is paid out immediately what should the investor pay today? (Asssume same discount rate). 3. If the investor pays $130,000 today and assuming the first paymentarrives in a years time, what would this investment’s internal rate of return be? (Asssume same discount rate). 4. What would the investor pay today if the first payment arrived in 5years time? (Asssume same discount rate). 5. If the investor invests $40,000 per year at the end of the next 4 years what would this be worth in 4 years time? (Asssume same discount rate).Suppose you are going to receive $13,500 per year for five years. The interest rate is 8.4%a. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?b. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? What if the payments are annuity due?c. Which has the highest present value (future value), the ordinary annuity or annuity due?Pls do fast and i will like for sure Try to give solution in typed form.. 1. Exercise One: A representative from Fiterman Insurance Company offers you an annuity that pays $2,500 at the end of each year – for the next 10 years. If the interest rate is 5.75%, using the annuity discount formula, (a) what is the fair price of this annuity today? (b) Verify your answer by using the PV function in Excel, (c) Suppose they modify the deal, and offer you an annuity that pays the same coupon, but on a semi-annual basis, what is the fair price of this instrument today?