A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?

Q: If the future value of an ordinary, 4-year annuity is $1,000 and interest rates are 6 percent, what…

A: Formula to compute future value of annuity due:

Q: you have a 12-year annuity paying $496 quarterly in 10 years when interest is 6.65% compounded…

A: Number of annuity payments = Number of years * time period of Payment = Number of years * Quaterly…

Q: What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?

A: Details given are : Annual cashflow = $300 time period = 5 years Interest rate = 8% We require to…

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: What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate…

A: Given details are : Annual payment = $3800 Interest rate = 5% = 0.05 From these details we need to…

Q: A ten-year annuity has an interest rate of 12% with individual cash flows of $150 at every end of…

A: Time period = 10 years  Interest rate = 12%  Cash flows = $150

Q: You have the opportunity to buy a perpetuity that pays $1,000 annually. Your required rate of return…

A: Payments each year = Cash flow = C = $1000 Rate of Interest = r = 13.2% = 0.132

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: Suppose ₱2500 is deposited at the end of each year for the next 5 years in an account paying 7.5%…

A: Annual deposit (P) = P 2500 Annual interest rate (r) = 7.5% Number of annual payments (n) = 5

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: A 15-year annuity pays $1,350 per month, and payments are made at the end of each month. If the…

A: The PV of the annuity is the present worth of the constant amount that has to paid or received in…

Q: If you borrow $8,000 with a 5 percent interest rate to be repaid in five equal payments at the end…

A: Computation:

Q: A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is…

A: Computation of perpetuity at t=4:

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: What is the present value of a four-period annuity of $200 per year that begins two years from today…

A: Annual annuity amount = $200 Time Period = 4 years Discount Rate = 9%

Q: What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?

A: Given: Rate: 7% Annuity =300      Number of years = 5

Q: A perpetuity pays $100 each year, with the first payment scheduled two years from now. Assume that…

A: Amount of $100 will be paid by a perpetuity and that will be started from year 2 (two year from…

Q: A perpetuity will pay $3000 per year starting seven years after the perpetuity is purchased what is…

A: Given: Amount = $3,000 Interest rate = 8% years = 7

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: Given a 10 percent discount rate, what is the present value of a perpetuity of 51,000 per year if…

A: perpetuity is a security that pays for an endless measure of time. In money, interminability is a…

Q: The future value of an ordinary annuity of $1,000 each year for 10 years, deposited at 3 percent, is

A: Payment (PMT) = $ 1,000 Tenure (N) = 10 years Rate (R) = 3%

Q: For an ordinary annuity with five annual payments of $100 and a 10% interest rate, how many years…

A: 1. How many years will the first payment earn interest? Since, it is an ordinary annuity , the first…

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O,…

A: The payment flow which continues for a definite time period and terminates after lapse of time…

Q: If the present value of an ordinary, 6-year annuity is $9,400 and interest rates are 9.5 percent,…

A: Time value of money is the concept widely used by the management to determine the worth of money…

Q: certain annuity pays 80.00 at the end of every 3

A: The nominal rate can be computed as follows :

Q: What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an…

A: Calculation of future value of annuity:

Q: what's the future value of the same annuity due?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What is the future value of an $800 annuity payment over 15 years if the interest rates are 6…

A: In this question we require to calculate the future value of annuity. Annuity amount (PMT) = $800…

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 present value of a $700 annuity payment over six years if interest rates are 10 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: Find the future value at the end of Year 12 of an annuity that pays $7,500 per year for 12 years…

A: Using excel FV function

Q: What is the present value of a perpetuity consisting of equal payments of $66 every 3 months, where…

A: The present value of the perpetual annuity is the current worth of a cash flow series continuing…

Q: A perpetuity will pay $800 per​ year, starting five years after the perpetuity is purchased. What…

A: Perpetuity refers to equalized stream of payments that are either paid or received for indefinite…

Q: A certain annuity pays $108 at the end of every 3 months. If the present value of the annuity is…

A: Annuity means a set of a finite number of payments that are made in equal time intervals and the…

Q: An annuity pays $1000 at the end of each year for 5 years and then $2000 at the end of each year for…

A: The discounted value is present value of future cash receipts

Q: An annuity pays $15 per year for 60 years. What is the future value of this annuity at the end of…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the…

A: The perpetuity is the annuity that happens for a perpetual period. In other words, it is the equal…

Q: A relative wills you an annuity paying $ 1900 per quarter for the next 6 years. If money is worth…

A: Annuity amount= $1900 per quarter Time period (n)= 6 years Interest rate (r)= 10% compounded…

Q: Find the future value of an ordinary annuity of $80 paid at the end of each quarter for 5 years, if…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: For an ordinary annuity with a five annual payments of $100 and a 10% interest rate, how many years…

A: Ordinary Annuity involves fixed and equal annual payments at the end of consecutive periods over a…

Q: What is the present value of an ordinary annuity of $400 each month for eight years, assuming an…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: A perpetuity pays $ 100 each year , with the first payment scheduled two years from now . Assume…

A: The question can be solved as follows:

Q: What's the future value of a 7 percent,  5-year ordinary annuity that pays $300 each year?

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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.