If you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money?

Q: A. An ordinary annuity selling at $2,514.15 today promises to make equal payments at the end of each…

A: In ordinary annuity, payment occurs at the end of the every period. Value of annuity is the present…

Q: A company wants to determine how much it should pay to purchase a particular ordinary annuity today.…

A: Formula for finding PV  PV=Payment per month*[{1-{1+interest rate)^(-Time period)}}/interest rate]…

Q: Calculate  time value of money : If I am to receive $10k in 5 years, given a 5% rate of return, what…

A: Time value of money helps the management for decision making. as the value of money, today is high…

Q: An investment of $100,000 today will make advance quarterly payments of $4,000. If the annuity can…

A: We need to use NPER formula in excel to calculate number of periods to depleted annuity.  Formula is…

Q: (a) Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period…

A: 1. A loan is the money is given to another party in exchange for repayment of the loan principal…

Q: 1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what…

A: 1. Investment= $10000 time= 4 years

Q: What is the future value four years from now of each of the following cash-flow streams if money can…

A: Future value is the worth of a certain deposit made today at a specific time in future.

Q: 1.If you put up $40,000 today in exchange for a 7.65 per cent, 20-year annuity, what will the annual…

A: Because you have posted multiple questions, we will answer the first question only.For the remaining…

Q: If you'd like to have $5,000,000 at retirement in 45 years and you expect to earn 10% annually,…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: If you put 45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual cash…

A: Present Value = 45,000 Rate = 6.4% Time period = 15 ye

Q: Find the present value of an annuity of $ 365.00 per month for 26 years at a rate of 3 1/4% interest…

A: Monthly payment (P) = $ 365 Period = 26 Years Number of monthly payments (n) = 26*12 = 312 Annual…

Q: A new investment opportunity for you is an annuity that pays $800 at the beginning of each year for…

A: Beginning of period Annuity Annuity Amount = 800 Time Period (N) = 3 years Rate = 5.5%

Q: Investment X offers to pay you $6,000 per year for 9 years,whereas Investment Y offers to pay you…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What is the value today of an annuity of $5,900 per year, with the first cash flow received three…

A: According to the information provided, the first cash flow is three years from today and the last…

Q: Suppose you're going to receive $7800 per year for five years. the appropriate discount rate is…

A: An annuity is defined as a stream of payments over a fixed period of time. Most people normally…

Q: Suppose you can save $200 per year at the end of each year for 15 years and earn 7.49% interest per…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Homework/ An electrical engineer wants to deposit an amount P now such that she can withdraw an…

A: Investment is way to spend your money to get the required return out of it in a certain period of…

Q: find the present value of an annuity due

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

Q: If you deposit $3,500 today into an account earnings an annual rate of return of 11 percent, what…

A: Deposit amount (P) = $ 3500 Interest rate (r) = 11% Period (t) = 35 Years

Q: A perpetuity will make its first payment in 20 years. The first payment will be $5,000, and future…

A: Perpetuity means a series of infinite numbers of payments of the same size occurs in an equal…

Q: If you put up $30,000 today in exchange for a 6.50 percent, 15-year annuity, what will the annual…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: The present value of an annuity is the sum of the discounted value of all future cash flows. You…

A: Given: Particulars Amount Amount Amount Amount Years (NPER) 10 10 10 10 Interest…

Q: much of the value of the account can be attributed to the interest earned? 5)You want have $12,000…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

A: Present Value of Annuity=Annuity×1-11+ratetimerate

Q: You are contemplating the purchase of a twenty-four year (variable) annuity that promises cash flows…

A: Compounded Monthly Number of compounding periods = 12 APR = 14.4%

Q: An annuity pays $1000 per year for 12 years. Inflation is 6 percent per year. The annuity costs…

A: Internal rate of return is one of the modern techniques of capital budgeting which considers the…

Q: f you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash…

A: Present value (PV) = $41000 Interest rate (r) = 5.1% Number of annual payments (n) = 15

Q: If you put up $38,000 today in exchange for a 6.75 percent, 14-year annuity, what will the annual…

A: Solution- We know that  PV=PMT[(1-(1+r)^-n)/r] Where PMT= Periodic payment r= rate n= number of…

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…

A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5

Q: What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year…

A: Year 1 cash flow (CF1) = $80,000 Growth rate (g) = 0.06 Interest rate (r) = 0.10 Present value = ?

Q: d. Calculate the future sum of $1,000, given that it will be held in the bank for 5 years earning an…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: An investment offers to pay you $300 per quarter for 10 years.  If the annual rate is 11% with…

A: given, quaterly payment N 10 x 4 = 40 I 11%4 PV find PMT $300 FV

Q: Computing the Present Value of a Single Amount Depp is reviewing an investment that will provide a…

A: Definition: Present value: This is the amount of future value reduced or discounted at a rate of…

Q: Suppose you would like to have P25,000 saved 6 years from now to pay towards your down payment on a…

A: Future value of ordinary annuity(payments at end of year) concept is used to calculated the annual…

Q: Suppose you are going to receive $13,000 per year for 7 years. The appropriate interest rate is 8…

A: Present value of annuity is the present value of all the stream of cash flows that occur in future.…

Q: What is the present value of a perpetual stream of cash flows that pays   $70,000 at the end of…

A: Year one cash flow = $70,000 Discount rate = 0.11 Growth rate = 0.05   Present value is the current…

Q: you put up $45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual cash…

A: Given information: According to the question,  the present value is $45,000 Rate of interest : 6.4%…

Q: Which is a better way to invest $7,000 if the concern is simply the future value: a 2-year…

A: Option 1 - Investing $ 7000  for 2 years at 2.2% quarterly Option  2- Investing divided $ 7000 in…

Q: You make monthly deposits of P100 into an annuity and after 30 years wish to accumulate P160,000.…

A: Interest is required to be paid on the amount loaned obtained by the borrower from the lender.…

Q: What is the present value of an annuity due of $10,000 per year, with the first cash flow received 5…

A: Present value of an annuity the present value of future cashflows

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.