You will receive a series of $1, 235 payments, annually, beginning exactly 9 years from today, for a total of 10 payments. The relevant interest rate (your opportunity cost) is 7.8% (as an EAR). The present value today ( year 0) of this series of payments is $_

Q: Using an annual effective interest rate of 7%, find X

A: To find the value of X, we need to calculate the present value of the cash flows using the given…

Q: valued at $15000. What is

A: To find the annual interest rate for the annuity, we can use the present value formula for an…

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

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: Find the present value (at time zero) of a perpetuity that pays $10,000 each year with its first…

A: The cash flows that are started at a specified period instead of immediately after the investment…

Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.

A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…

Q: You are currently at time period 0, and you will receive the first payment on an annual payment…

A: Annuity is the series of equal cash payments over the period.

Q: An investment is expected to result in equal payments of $9940.00 at the end of each quarter for the…

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

Q: Jones expects an immediate Investment of $95,824.80 to return $24,000 annually for five years, with…

A: Annuity is a contract under which one party agrees to pay a fixed amount, at each interval of time,…

Q: of four $10,000 semi-annual payments will begin 5 years from now, with the first payment coming 5.5…

A: Value of annuity is the present value of annual payments to be received considering the interest…

Q: Find the accumulated value of a 20 year annuity immediate with ¿(12) = .09 that makes monthly…

A: The objective of the question is to find the accumulated value of an annuity immediate that makes…

Q: If interest rate is 10% per year, which one of the following annuities give maximum benefit and…

A: In the given question, different set of annuities having different time periods and amounts is…

Q: Determine the Future Value after 20 years for an annuity of $500 deposited every 3 months,…

A: We need to use below mention TVM functions to calculate future value. N=Number of periods  I/Y…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The objective of the question is to find the present value (PV) of an annuity account that is…

Q: 1) An Annuity of $1200 paid every quarter for 10 years has a current/present value of $ 32826.58.…

A: The first part of the question is asking for the interest rate of an annuity. The formula for the…

Q: Find the present value of a 30 year annuity immediate with effective annual interest rate i = .03…

A: Present value refers to the current value of the cash flows or the annuity. Present value can be…

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: what is the present value

A: The time value of money means that the amount of money received in the present period will have…

Q: The present value of a 10-year annuity immediate is 10,000$. The interest rate is j1=5% for the…

A: The interest rate changes over the lifespan of the annuity. We have the present value. We need the…

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: 5. Find the equivalent future worth for a series of monthly payments of$120 for 20 years at an APR…

A: Future value of a present value is the value of that amount after taking into account the time value…

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: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: Annuity refers to a fixed and constant cash flow stream. In this case the monthly withdrawals of…

Q: Calculate the present value of this infinite future payment of $100

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

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

A: Computation:

Q: $10,000 as a bonus after 6 years. You have calculated the present value of this bonus and the answer…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Find the present value of OMR7, 000 to be receive one year from now, assuming a 3 percent annual…

A: Present value is the current value of a future stream of income or cash flows. It is very easy and…

Q: You will receive a series of $1, 224 payments, annually, beginning exactly 8 years from today, for a…

A: Present Value is the current price of future value which will be received in near future at some…

Q: What is the present value of $200 per year, at a discount rate of 18.25 percent, if the first…

A: Annuity Amount is $200 Discount Rate (r) is 18.25% First Payment is received is 6 years from now…

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $35000 at the time you…

A: Loan amount is $35000 Interest rate is 9%  Time period is 10 years To Find: Fixed Monthly repayment

Q: Jones expects an immediate investment of $49,156.80 to return $8,000 annually for ten years, with…

A: Variables in the question:Present value of investment=$49156.80Annuity payment=$8000N=10 years

Q: You are investigating an investment opportunity. The security requires you to make monthly payments…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: Keith Riggins expects an Investment of $45,636.60 to return $6,000 annually for several years. If…

A: Present Value is the value of one dollar as of today which will be received in future. For the…

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: 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: Suppose you will receive OMR 1 each year for the 3 coming year the Interest Rate is 10% Question:…

A: Calculation of future value annuity: Answer: Future value annuity is OMR 3.31

Q: Suppose you expect to receive periodic payments of $1,500 at the end of 3, 5, 7, and 10 years from…

A: Given information,Discount rate: Payment in period 3, 5, 7 and 10: To calculate,Present value of the…

Q: Compute the future value of annual payments of $100, paid for 5 years, with an interest rate of 8% (…

A:

Q: will receive $1000 two years from today, and at the end of each subsequent year, you will receive an…

A: In perpetuity there are payments forever and there is no break of the payments in perpetuity.

Q: What is the future value (at the end of 10 years) of an annuity that pays $700 a quarter over 10…

A: Quarterly payment$700Interest rate6.6%Number of years10 years

Q: Find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The…

A: The formula used for calculating G is:

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The present value (PV) of an annuity is a financial concept that represents the current worth or…

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

A: Present value is the equivalent value today of the future money to be received in the future based…

Q: A 20-year annuity X has annual payments of $10,000 at the beginning of each year for 10 years, then…

A: A series of payment made at equal interval is called Annuity.

Q: Investment A will make N annual payments of $300.00 with the first of the N payments due imm…

A: Value of investment A=$20000Annual payment=$300Number of payments=NInvestment A=annuity…

Q: Calculating Present Values) A5- year annuity of ten $7,000 semiannual payments will begin 8 years…

A: Step 1: Calculate the present value of the annuity 5 years from now.Present value of the annuity 5…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.