What is the present value of a 10-year annuity of $5,250 per period in which payments come at the beginning of each period? The interest rate is 11 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table
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A: (Y0)1ST PAYMENT= $1000 Y1 TO Y10 PAYMENT = 1000 +50 = 1050 Y11 TO Y20 PAYMENT = 1000 +50 +100 =…
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:
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A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where P = Annuity amount i.e. $5000 r = rate of…
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A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…
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A: Computation:
Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 5%…
A: Since rate is 5% simple interest we will not be using the compounding functions.
Q: what is the present value of the 3 year annuity of $270 if the discount rate is 7% if you have to…
A: The formula to compute present value of annuity as follows:
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A: Future value of annuity is the future value of periodic streams of cash flow over a definite period…
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: find the present value of an annuity due
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A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…
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A: Perpetuity means a series of infinite numbers of payments of the same size occurs in an equal…
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: If the future value of an ordinary, 7-year annuity is $6,500 and interest rates are 8.5 percent,…
A: Future value (FV) = $6500 Interest rate (r) = 8.5% Period (n) = 7 Years
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: If the present value of an ordinary, six-year annuity is $8,500 and the interest rates are 9.5…
A: Given: Resent value of Ordinary Annuity = $8500 Interest Rate = 9.5% Time =6 years So, the value of…
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A: Computation:
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A: Spot rate: It is the return on a bond that is earned when it is purchased and traded on secondary…
Q: Suppose you are going to receive $17,500 per year for five years. The appropriate interest rate is…
A:
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…
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A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…
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Q: Present Value of an Annuity Due If the present value of an ordinary, 5-year annuity is $6,200 and…
A: Time Period (N) = 5 years Present Value of Ordinary Annity = 6200 Interest Rate = 13%
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: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…
A: PMT = 58 Period = 13 years Nominal rate of interest = 7.23% Additional amount = 1000
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: If the future value of an ordinary, 7-year annuity is $7,900 and interest rates are 9.0 percent,…
A: Future value of an ordinary annuity = $7,900 Interest rate = 9%
Q: If the present value of an ordinary, 6-year annuity is $6400 and interest rates are 2.5 percent,…
A: Given: Present value (PV)= $ 6400 Interest rate (r)= 2.5% Number of years (n) = 6
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A: Annual payment (P) = $830 Interest rate (r) = 10% Period (n) = 6 Years
Q: What's the present value of a $660 annuity payment over five years if interest rates are 9 percent?…
A: Annuity payment (P) = $660 Interest rate (r) = 9% Period (n) = 5 Years
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A:
Q: Find the future value for the annuity due with the given rate. payments of $400 for 9 years at0.32%…
A: Future value of Annuity due is the cash flows occur at the beginning of the period,and future value…
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A: Annuity is an cashflow which is transferred between sender and recipient as a series of payments
Q: ow at 9.6%?
A: Here, P = $10,800 i = 0.096 n = 11 Now, Future Value of Annuity (FVA) is FVA=P x(1+i)n-1i…
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A: Annuity means periodic payments and when periodic payments are at beginning of the period, the…
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A: Payments occurring at the end of year means its a ordinary annuity.
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A: Given, Future Value = $9,900 Interest Rate = 9.0% Term = 7 years Formula: Future value of annuity…
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A: The question is based on the concept of perpetuity payment and concept of time value of money.Future…
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A: The question gives the following information:
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
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- What is the present value of a 6-year annuity of $2,250 per period in which payments come at the beginning of each period? The interest rate is 10 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table value. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Present valueAppendix D Present value of an annuity of $1, PV PV-A (1+ Percent Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 1. 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 6. 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4,486 4.355 4.231 4.111 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 ........ 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492…For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (/= interest rate, and n= number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) 1. $ 2 3 4. 15 Present Value Answer is complete but not entirely correct. Annuity Amount 2.200 145,000 190,000 72.523 45,787 8,784 558,865 480,945 520,000 240,000 8% 1.0% 9% 2.5% 10% n= 5 4 30 8 4
- Calculate the present value of the following annulties, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of S1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) \table[[, \table[[Annuity], [Payment]], \table [[ Annual], [Rate]], \table[[Interest], [Compounded]], \table [[Period], [Invested]], \table [[Present Value of], [ Annuity]]], [1., $5,000, 7.0%, Semiannually,3 years,], [2., 10, 000, 8.0%, Quarterly,2 years, ], [3., 4,000, 10.0 %, Annually,5 years,]]Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1, EVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. Annuity Payment $ 3,700 Annual Rate Interest Period Compounded Invested Future Value of Annuity 7.0% Semiannually 9 years 2. 6,700 8.0% Quarterly 5 years 3. 5,700 12.0% Annually 6 yearsCalculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Annual Payment Rate $4,700 6.0 % 8.0 % 7,700 6,700 10.0 % Show Transcribed Text 1. 2. 3. Annuity Annual Payment Rate Interest Compounded Quarterly Annually Semiannually $ 5,700 Interest Compounded 8.0 % Quarterly 10,700 11.0% Annually 4,700 10.0 % Semiannually Period Invested 5 years 6 years 9 years Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) $ Period Invested 2 years 5 years 3 years Future Value of Annuity 172,892.28 Present Value of Annuity
- Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of AnnuityUse graphical approximation techniques or an equation solver to approximate the desired interest rate. A person makes annual payments of $1000 into an ordinary annuity. At the end of 5 years, the amount in the annuity is $ l5764.52. What annual nominal compounding rate has this annuity earned? Type the interest rate % (round to 2 decimal places)For each of the following situations involving annuities, solve for the unknown Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (=interest rate, and n number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. EVA of $1. PVA of $1, EVAD of $1 and PVAD of $1) 1 2 3. 4. 5 Present Value 368,041 714,457 600,000 200,000 Annuity Amount $ 4,000 105,000 110.000 96,048 8% 10% 10% n= 5 4 9 4
- For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Annuity Amount i = n = 1. ? $2,400 8% 5 2. 533,082 140,000 ? 4 3. 583,150 180,000 9% ? 4. 530,000 75,502 ? 8 5. 235,000 ? 10% 4For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.)Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1. $3,100 8.0 % Semiannually 9 years $79,500.77 2. 6,100 10.0 % Quarterly 5 years 3. 5,100 12.0 % Annually 6 years