4: A perpetuity pays $3400 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 10.7%, what is the present value of this perpetual annuity?
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- 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?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 annuityA perpetuity will pay $736 per year, starting five years after the perpetuity is purchased. (The first payment is precisely 5 years after purchase.) What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 9 % ?
- Problem #4: A perpetuity pays $3400 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 10.7%, what is the present value of this perpetual annuity?What is the present value of an annuity that pays $536 at the end of each year in years 4 through 12? The discount rate (opportunity cost) is 3.5%.What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.
- 9. A perpetuity due pays 600 in the first year, and in each subsequent year, the payment is 1% greater than the payment before. At an annual effective interest rate of i, the present value for the perpetuity is 152,100. Just after receiving the third payment, the perpetuity is replaced by a 30 year annuity immediate, and the present value for this annuity is also based on an annual effective interest rate of i. The annuity has payments of Find X. X, 2X, 3X, 4X, 5X, ...., 29X, 30XWhat is the present value of a perpetuity consisting of equal payments of $66 every 3 months, where the first payment occurs 3 months from now, and the interest rate is 12% p.a.?Two annuities have equal present values and an applicable discount rate of 7.25 percent. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year?
- An annuity pays $ 15,000 per year. Due to inflation, each year a dollar is worth what $ 0.970 was worth the previous year. Payment is made at the beginning of each year. What is the present value of the annuity if it is paid over three years (starting immediately)?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.)9) A retirement gratuity of $123 900.00 is invested in annuity deferred for 10 years. The annuity provides payments of $9600.00 due at the beginning of every six months. If interest is 7.41% compounded annually, for how long will annuity payments be made?