You have your choice of two investment accounts. Investment A is a 9-year annuity that features end-of-month $2,800 payments ar has an APR of 7 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an APR of 9 percent, also good for 9 years. How much money would you need to invest in B today for it to be worth as much as Investment A 9 years from now? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value

A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of P8,000each starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually? What problem is all about? A. Perpetuity B. Annuity due C. Deffered

Two annuities are available for purchase that your client has identified. The first annuity pays $7,000 each six-month period over a 5-years period, at a nominal rate of 9% p.a. The annuity has an annual fee of $300, paid at the beginning of each year. The second annuity pays $1,000 each month, again over 5 years at a nominal rate of 10% p.a. and does not have an annual fee. If each of the annuities cost $50,000, identify which of the annuities you would recommend to your client.

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TABLE 13.2 Present value of an annuity of $1 ½% 8% 1% 0.9901 2% 0.9804 3% 0.9709 4% 0.9615 5% 0.9524 1.8594 6% 7% 0.9434 0.9346 0.9259 9% 10% 11% 12% 0.9174 0.9091 0.9009 0.8929 0.9950 1.9851 1.9704 1.9416 1.9135 1.8861 2.9702 2.9410 2.8839 2.8286 2.7751 2.7232 3.9505 3.9020 3.8077 3.7171 3.6299 3.5459 1.7591 1.7355 1.7125 1.6901 2.5313 2.4869 2.4437 2.4018 3.2397 3.1699 3.1024 3.0373 3.8897 3.7908 3.6959 3.6048 4.4859 4.3553 4.2305 4.1114 4.9259 4.8534 4.7134 4.5797 4.4518 1.8334 1.8080 1.7833 2.6730 2.6243 2.5771 3.4651 3.3872 3.3121 4.1002 3.9927 4.6229 5.2064 5.7466 4.3295 4.2124 5.8964 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 6.8621 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.0330 4.8684 7.8230 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 8.7791 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 4.7122 4.5638 5.5348 5.3349 5.1461 4.9676 5.9952 5.7590 5.5370 5.3282 6.4177 6.1446 5.8892 5.6502 6.8052 7.1607 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101…

A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund    C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)

> An ordinary annuity that earns 7.3% compounded monthly has a current balance of $600,000. The owner of the account is about to retire and has to decide how much to withdraw from the account each month. Find the number of withdrawals under each of the following options. (A) $5000 monthly (B) $4000 monthly (C) $3000 monthly (A) Select the correct choice below, and, if necessary, fill in the answer box t OA. The total number of withdrawals of $5000 will be OB. The withdrawals of $5000 continue forever. Help me solve this View an example complete your choice. Get more help. Clear all Check answer rect: 0

You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 3.9 percent per year, compounded monthly for the first six months, increasing thereafter to 18.8 percent per year, compounded monthly. Assuming you transfer the $19,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Interest owed

Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $170 deposited monthly for 20 years at 3% per year in an account containing $11,000 at the start     Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $90,000 in a fund paying 6% per year, with monthly payments for 5 years

A 6-year term insurance policy has an annual premium of $500, and at the end of 6 years, all payments and interest are refunded. What lump-sum deposit is necessary to equal this amount if you assume an interest rate of 2.5% compounded annually? (a) State the type. future value present value of an annuity sinking fund amortization ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.) $