5) You have an ordinary annuity of monthly payments of $500 per month with interest of 5% compounded monthly over the period of one year. a) Find the present value of the annuity.

Q: Find the value of an ordinary annuity if payments are made in the amount of R and interest is…

A: Annuity means regular payments or receipt of the same amount at the same interval period. Future…

Q: 4.  a.)  What is the future value of an annuity due with an annual payment of $1,500 for four years…

A: Future Value is that amount which includes the interest earned and investment value which is…

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

A:

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: Use the simple interest formula message to find the future value of an ordinary annuity of $3300…

A: An annuity is a payment series that provides the holder with future cash flows in exchange for a…

Q: Find the future value of a 6-year annuity due with payments of $4,300 and an annually compounded…

A: An annuity is a contract that pays a periodic sum for a predetermined period for a lump-sum amount…

Q: What is the Present Value of a 3-year ordinary annuity of $100 at 5%?  For clarity, the annuity pays…

A: present value of ordinary annuity formula: PVA=A×1-11+rnrwhere,A=annual paymentr=interest…

Q: Find the future value of a 6-year annuity due with payments of $2,050 and an annual compound…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: Find the future value of a 10-year annuity due with payments of $2,250 and an annually compounded…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: Find the future value of the following ordinary annuity. Payments are made and interest is…

A: STEP 1 When assuming a specific rate of return, or discount rate, the future value of an annuity is…

Q: Find the present value of the annuity that will pay $850 every month for 3 years from an account…

A: To calculate the present value we will use the below formula   Present value = P*[1-(1+r)-n]/r Where…

Q: Assume that you make monthly payments of $ 750 into an ordinary annuity paying 4% compounded…

A: The time value of money concept will be used and applied here. Ordinary annuity means annuity or the…

Q: Find the future value of a 15-year annuity due with payments of $2,700 and an annual compound…

A: To Find: Future Value

Q: Find the future value of a 12-year annuity due with payments of $3,000 and an annually compounded…

A: The future value of an annuity due is the value of a series of equal payments made at the beginning…

Q: Find the future value of a 6-year annuity due with payments of $1,400 and an annually compounded…

A: The future value represents the value of an investment in the future after considering the effect of…

Q: Find the present value of an ordinary annuity which has payments of $1600 per year for 8 years at 9%…

A: The problem is asking us to find the present value of an ordinary annuity. An ordinary annuity is a…

Q: value of the given annu

A: The future value of the annuity can be calculated as follows :

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 future value of a 15-year annuity due with payments of $2,350 and an annual compound…

A: Future value refers to the accumulated sum based on a current deposit. If deposits are made…

Q: Find the present value of an ordinary annuity with deposits of 23,958 every 6 months for 4 years at…

A: The formula to compute present value:

Q: Suppose an annuity at 5% compounded semi-annually will pay $5000 at the end of each 6-month period…

A: The annuity refers to the series of regular payments that last for a specific period of time. The…

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

Q: Calculate the present value AND the future value of an annuity with a monthly cash flow of $100,…

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

Q: (2) A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…

A: Present value (PV) is a financial concept that represents the current value of a sum of money or a…

Q: The ABC company bought a truck costing $100,000 two and a half years ago. The trucks estimated life…

A: Understanding the Problem:Initial Cost: $100,000Estimated Life: 4 yearsDepreciation Method:…

Q: Find the future value of the annuity due. Payments of $500 per quarter for 3 years at 7% compounded…

A: FV = Future value? C = Quarterly cash flow i.e. $500 r = Quarterly Interest rate i.e. 0.0175 (0.07 /…

Q: a. Calculate the annual cash flows ( annuity payments) from a fixed - payment annuity if the present…

A: Annual cash flows refer to the amount that defines the inflow and outflow of the cash during the…

Q: Find the future value of a 6-year annuity due with payments of $1,800 and an annually compounded…

A: Annuity due is a type of annuity in which the payments will be accruing at the beginning of the…

Q: A 20-year annuity pays $1,200 per month, and payments are made at the end of each month. The…

A: The concept of time value of money will be used and applied here.   An annuity is a stream of…

Q: An annuity provides for 12 annual payments. The first payment is $100, paid at the end of the first…

A: The above example is the type of growing annuity. We need to find out the present value of this…

Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…

A: Required :The discounted value of these cash flows.