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: 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: 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: If you are expecting to get OMR 34595 at the end of 3 years. Calculate its present value if the…

A: Nominal rate of return 9% Compounding Quarterly Effective rate of return ((1+9%/4)^4)-1)…

Q: Calculate the perpetual equivalent annual cost (years 1 to ∞) of $825,000 now and $1,000,000, 8…

A: Cost now (C0) = $ 825,000 Cost after 8 years (C8) = $ 1,000,000 Period (n) = 8 Years Interest rate…

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

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: Currently, you have $30,000 that you would like to grow to $97,000 within the next 6 years. Assuming…

A: The concept of TVM refers to the interest-earning capacity of money which makes money earned earlier…

Q: What is the value today of receiving six annual payments of $400,000, beginning one year from now,…

A: Using the scientific calculator, we can calculate the NPV of the cash flows.  Enter the value as…

Q: If $84,000 is invested in an annuity that earns 5.2%, compounded quarterly, what payments will it…

A: Investment (PV) = $84000 Interest rate = 5.2% Quarterly interest rate (r) = 5.2%/4 = 1.30% Period =…

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: You will receive $1,000 forever starting from the end of next year. The account pays  10% compounded…

A: The PV of an investment refers to the combined worth of the cash flows of the investment after they…

Q: Find the future value of an annuity of $1400 paid at the end of each year for 15 years, if interest…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

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: 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: 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: What is the present value of monthly payments of $1000 for 5 years followed by monthly payments of…

A: To compute the present value of the payments we need to discount these cash flows. The sum of these…

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: Currently, you have $29,000 that you would like to grow to $91,500 within the next 7 years. Assuming…

A: The concept of TVM refers to the interest-earning capacity of money which makes money earned earlier…

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: 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: What is the present worth of a uniform series of 10 payments that begin one year from now in the…

A: Present Value is the amount of money's worth on the present day which to be received/paid in future,…

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: What is the value today of receiving $4, 500 at the end of each year for the next 6 years, assuming…

A: Present value is the equivalent value of the future money based on time value of money that is…

Q: How much should be invested each year for 10 years to provide you with $8000 per year for the next…

A: Present value includes the value without interest rate and future value includes the value with…

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…

Q: What is the present value of ​$1,000 paid at the end of each of the next 100 years if the interest…

A: Payment = p = $1000Time = t = 100 YearsInterest rate = r = 4%

Q: Given the following information, calculate the rate of return. price = $501.88 time to maturity =…

A: price = $501.88time to maturity = 10 yearsannual payment = $100type = ordinary annuity

Q: Periodic payment is $1940, payment interval is 1 year, term is 5 years, interest rate is 4%, and…

A: Future value refers to the compounded value of the future expected cash flows. compounding is done…

Q: What is the present value of 10 equal payments of $21,000 to be made at the end of each year for the…

A: Computation of present value:Present value = Cash outflows * PVAF@10% for 10 yearsPresent Value =…

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.