A 15-year annuity pays $2,050 per month, and payments are made at the end of each month. If the APR is 10 percent compounded monthly for the first seven years, and APR of 6 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ 279,480.37

A 15-year annuity pays $2,050 per month, and payments are made at the end of each month. If the APR is 10 percent compounded monthly for the first seven years, and APR of 6 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ 279,480.37

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 7P

See similar textbooks

Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?
A 10-year annuity pays $1,850 per month, and payments are made at the end of each month. If the APR is 12 percent compounded monthly for the first five years, and APR of 8 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g... 32.16.) Present value
A 20-year annuity pays $1,950 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 percent compounded monthly thereafter, what is the present value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Present value $
A 19-year annuity pays $2,050 per month at the end of each month. If the APR is 13 percent compounded monthly for the first ten years and 7 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the present value
A 15-year annuity pays $1,750 per month, and payments are made at the end of each month. If the APR is 9 percent compounded monthly for the first seven years, and APR of 6 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
A 10-year annuity pays $1,725 per month, and payments are made at the end of each month. The interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter. What is present value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What is the value today of a 15-year annuity that pays $630 per year? The annuity's first payment occurs six years from today. The discount interest rate is 11 percent for Years 1 through 5 and 13 percent thereafter. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
A thirty-year annuity has end - value of the annuity if i = 3 % - of month payments. The first year the payments are each $ 120. In subsequent years each payment increases by $5 over what it was the previous year. Find the present (Round your answer to the nearest cent.)
If the present value of an ordinary, 6-year annuity is $8,500 and interest rates are 9.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value $
A 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments are also 1000, and then subsequent payments increase by 5.06% over their previous payment. Determine the present value of the annuity using an interest rate of 8%, compounded quarterly. A) 58,295 B) 59,570 C) 60,845 D) 62,120 E) 63,395