2. An annuity provides a payment of n at the end of each year for n years. What is the present value of the annuity if the annual effective rate of interest is 1/n?

Q: How much more is a perpetuity of $2,000 worth than an annuity of the same amount for 10 years?…

A: Formula using here,  PV of perpetuity =Amountinterest rate =20004%=$50,000

Q: 3. A man deposits P1,000 every year for 10 years in a bank. He makes no deposit during the…

A: Given problem is:- A man deposits P1,000 every year for 10 years in a bank. He makes no deposit…

Q: Assume that you make quarterly payments of $ 750 into an annuity paying 5% interest compounded…

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Q: What cash payment is equivalent to making payments of 1560 at the end of every year of 9 years if…

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Q: What is an annuity? Write an expression for the amount Af of an annuity consisting of n regular…

A: Annuity is defined as the fixed amount of money paid at regular intervals.

Q: Month end contributions of $500 are made to an account for 10 years. For exactly 7 years following…

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Q: to retire a bond of $100,000.00 in 5 years what amount needs to be deposites at 8%.

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Q: What sum of money is required to pay a loan of P20,000 on May 20, 2018, if the loan was made on…

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Q: Payments are deposited in a fund at the beginning of each month for 4 years. The monthly deposit in…

A: Given that monthly deposit in a year is 20n; n=1, 2, 3, 4 rate if interest is 12% time is 4 years so…

Q: If P100,000 is deposited in an account paying 5% compounded quarterly, how much is in the account at…

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Q: The time line below shows an annuity from which quarterly withdrawals are made for 10 years.…

A: Given: Periodic Payment = $7000 Rate per period = 0.0175 Number of periods = 40

Q: I will invest Nu. 500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I…

A: Given information Quarterly deposit P=$500 Annual interest rate  r=7.3% Period of paymentn=32 years…

Q: A certain annuity pays P 80 at the end of every 3 months for 12 years. If the present value of the…

A: we have  i=effective rate for every 3 months n= number of 3 months periods present value of annuity…

Q: What

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Q: Supposed to deposit $100 every six months into an account that pays 6% compounded semiannually. If…

A: Annuity formula is as below: here,d=100N=3 yearsr=6 %=0.06k=2

Q: What is the present value of an amount of ¢100 is deposited in an account at the start of the every…

A: The amount is calculated by the formulaF=P×1+inn×twhere,F== future valueP=present valuei=the…

Q: 2. Find the rate of interest i such that a 20-year annuity with payments at the end of each year has…

A: The rate of interest is assumed to be i. The accumulated value for a 20-year annuity with payments…

Q: . A businessman needs an additional capital of 100000 for 10 years. What is the annual deposit in…

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Q: -. Find the future value of an annuity of $5000 paid at the end of each year for 10 years, if it…

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Q: Suppose you deposit P 85,700.00 in a savings account earning 1.25% interest, compounded…

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Q: An amunt of 1 dollar is deposited in a funding at the beginning of every month for 7 years with 7%…

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Q: Determine the present value of P 6,800 paid at the end of each subsequent quarter for 7 years if…

A: Given information PMT=$6,800 Rate of interest r=6% ⇒r=6100=0.06 Time t=7 years Since, interest is…

Q: If $8,800 is repaid of 9 months at 6.75% annual rate, earned interest is____________

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