You make two annual payments of $2,000 each (the first payment is made one year from today) into a savings account with 10% annual interest. What is the present value of these payments at the time of the last payment?

Q: What is the value of an annuity at the end of 10years if $1,000 is deposited every six months into…

A: Introduction: Future value of an ordinary annuity can be defined as a metric which helps to know how…

Q: What amount is required to purchase an annuity that pays $7000 at the end of each quarter for the…

A: The term "annuity" refers to a contract created and offered by financial institutions with the goal…

Q: The risk premium on the market portfolio is estimated at 8 % with a standard deviation of 22 %. What…

A: The risk premium is the excess return over the risk-free rate.  To determine the risk premium of the…

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: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…

A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…

Q: what is the present value of the perpetuity?

A: Present Value: It represents the present worth of the perpetual/constants cash flows. It is…

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

A:

Q: The Solvent Insurance Co. will pay you $4,750 a year for 15 years in exchange for $45,000 today.…

A: in this you have to find out present value FACTOR and from that you can get interest rate.

Q: How much money do you need now to set up a perpetuity that pays $2,000 at the end of each quarter if…

A: Perpetuity used to defined as an annuity, which is without any of an end or used to be said that…

Q: What must YOU invest today to receive an annuity of $4,500 for 10 years compounded at 8% quarterly…

A: PV of Annuity =P1-1(1+r)n r Where PV = Present Value r  = rate of interest n = Number of Period P =…

Q: What is the present value of $4,000 paid each year forever, assuming a discount rate of 7% and the…

A: The formula to calculate present value of perpetuity isPV of perpetuity=Cash flow/Discount rate

Q: You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…

A:

Q: What is the future value of a 12%, 10 year annuity due that pays 1,000 each year.

A: The objective of the question is to calculate the future value of an annuity due. An annuity due is…

Q: Assume that you are going to receive $468 yearly until the day of your retirement (15 years from…

A: The annuity is a series of cash flow wherein an equal amount is paid every period. The value at the…

Q: What is the present value of an annuity of $4000 received at the beginning of each year for the…

A: The present value of an annuity is an estimate of the present worth of future annuity payments based…

Q: What will be your annual payment if you take nowa loan of $164,000 with annual equal repayments over…

A: Loan amount = $164,000 Loan period = 11 years Interest rate = 0.08 (i.e. 8%) Amount of annual…

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: Suppose P1500 is deposited at the end of each year for the next 6 years in an account paying 8%…

A: Formula:  Periodic Deposit at the end of the Year,…

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: What is the present value of a Annuity where the investor receives $10,000 every year for 10 years…

A: Annuity = a = $10,000Time = t = 10 yearsInterest rate = r = 4.5%

Q: hat is the present value of a perpetuity paying $1500 each year, if the effective annual interest…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: Assume you are to receive a 5-year annuity with annual payments of £1,000. The first payment will be…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

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: 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: You borrow a GPM of $120,000 with annual payments and 30-year term. The interest rate is 10%. The…

A: To solve this problem, we can use the formula the present value of a growing annuity. The formula…

Q: annual payments of $1,500 per year, at a disco

A: PV = PMT * [(1 - (1 + r)^(-n)) / r]Where:PV is the present value of the annuityPMT is the amount of…

Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest…

A: Future value can be determined by compounding the present value.

Q: You deposit $58000 into an account which pays 6% compounded annually. How much can you withdraw at…

A: Perpetual annual withdrawal refers to the amount of repayment for n number of years forever. This…

Q: An annual perpetuity has a constant cash flow of $1000.  If the interest rate is 7% compounded…

A: Given, Annual cash flow: $1,000Interest rate: 7%Present value of perpetuity=Annual cash…

Q: what is the value of the annuity today

A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…

Q: If you invest $1,000 in an account that pays an annual interest rate of 6.4%, compounded monthly,…

A: Computation:

Q: If you put up $73,000 today in exchange for an annual 6.75 percent, 18-year annuity, what will the…

A: The annual cash flow can be computed with the help of present value of annuity.

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

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: four. With an interest rate of 10%, what is the net value of the payments versus receipts in today's…

A: Time value of money concept says that a certain amount of money worth today is more than the same…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.