You have a $50,000 twenty year growing annuity earning 8 percent interest compounded annually. Calculate its present value if this annuity has a 2.2 percent growth rate. A B $425,745 $567,661 C $576,254 E D $670,843 $772,176
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- An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How much would it cost to purchase this annuity today? O 103,500 87,339 81,367 O 133,591You make annuity payments of $25,000 per year for the next 11 years. If you earn 6.67% return, how much is this annuity worth at the end of 11 years from today? 793,098 190,587 387,757 O 50,863You buy an annuity that will pay you $24,000 annually for 25 years. The payments are paid on the first day of each year. What is the value of this annuity today if the discount rate is 8.5 percent? 241309 266498 258319 251409 245621 A O BO .C DO E O
- You are offered an annuity that will pay $14,000 per year for 13 years (the first payment will be made today). If you feel that the appropriate discount rate is 8%, what is the annuity worth to you today? $110,652.86 $300,934.15 $119.505.09 $325,008.88 $242,876.85 4.0An annuity is set up that will pay $1,500 per year for nine years. What is the present value (PV) of this annuity given that the discount rate is 9%? A. $8,993 B. $10,792 C. $5,396 D. $12,590A growing annuity pays $1,000 at the end of the second year (t=2). The payment grows 3% per year till the end of the sixth year (t=6). What is the present value for the five-year growing annuity if the discount rate is 8%? A. $3,907.73 B. $2,433.04 C. $4950.89 D. $4220.35
- Suppose an annuity will pay $11,000 at the beginning of each year for the next 7 years. How much money is needed to start this annuity if it earns 7.7%, compounded annually? (Round your answer to the nearest cent.)$What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The appropriate interest rate is 7 percent. Answers: a. $10,000 b. $6,452 c. $20,423.74 d. $4,657 An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? Answers: a. $1,134 b. $5,324 c. $2,345.50 d. $2,569.77 *PLEASE SHOW ALL STEPS! CANNOT USE EXCEL TO SOLVE! CAN USE CALCULATOR FUNCTIONS!!An annuity pays $54 per year for 28 years. What is the future value (FV) of this annuity at the end of those 28 years, given that the discount rate is 8%? A. $5,148.30 B. $7,207.62 C. $6,177.96 D. $3,088.98
- What is the future value of an annuity of $10,800 invested every year for the next 11 years starting one year from now at 9.6%? Answer: $ Blank 1Which will provide the largest yield on an annuity after 30 years with 6% annual interest, compounded monthly? Annuity A: Deposit $2400 per year Annuity B: Deposit $600 per quarter Annuity C: Deposit $72,000 one lump sum Would it be Annuity A, B, or C?Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return of 9 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Answer Question 4 Assume that you deposit $3,956 each year for the next 15 years into an account that pays 20 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.