9. Calculating Annuity Values If you deposit $5,000 at the end of each year for the next 20 years into an account paying 10.1 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years?

Q: If you have an annuity with a 5.5% compounded interest rate monthly and 2,000 is invested at the end…

A: The future value of annuity refers to the total value of a series of equal cash flows received or…

Q: You have set up a life annuity with a present value of $250,000. If your life expectancy at…

A: Using the PMT function in excel

Q: What are the monthly payments you will receive if your retirement nest egg of $ 1,000,000 is in a 5%…

A: Present valueof the retirement Amount $ 10,00,000.00Interest rate5%Tenure, years20Compounding…

Q: What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10…

A: Given: Annual cash flow (A)=$1000 Number of years (n) =9 years Interest rate(r) = 10% = 0.10

Q: How much would you be willing to pay today for an ordinary annuity that makes equal annual payments…

A: An ordinary annuity is the series of an equal payment that is paid or received at each week, month,…

Q: Your firm expects to receive a cash flow in two years of $1698 in nominal terms. If the real rate of…

A: $1,429.17.

Q: You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…

A:

Q: What is the value today of receiving $2,506.00 per year forever? Assume the first payment is made…

A: Present value refers to the discounted value of the future cash flows at the discounting rate for…

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

Q: An annuity offers $1,000 for 10 years. If you can earn 12 percent annually on your funds, what is…

A: Annuity Amount = $1,000 Years(n) = 10 Interest Rate(r) = 12% Present Value of Annuity =…

Q: Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much…

A: Annual payment (P) = $14,000 Interest rate (r) = 6.5% Period (n) = 5 Years

Q: What is the present value of a Annuity where the investor receives $10,000 every year for 10 years…

A: Annuity = a = $10,000Time = t = 10 yearsInterest rate = r = 4.5%

Q: What would your investment account be worth in 23 years if you currently have $7,000 saved and plan…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Calculating Annuity Payments You want to be a millionaire when you retire in 40 years. How much do…

A: Retirement period = 40 yearsInterest rate = 10.2%Amount = $1,000,000

Q: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: Using The Future value function in excel

Q: You buy an annuity that will pay you $24,000 a year for 25 years.  What is the value of this annuity…

A: Present value of annuity = Annuity amount * PVA of $1

Q: •An insurance company offers to pay you $1,000 per year for 10 years if you will pay $6,710 up…

A: We can solve this using Present value of annuity formulaPresent value of annuity is =…

Q: what is the value of this annuity five years from now? What is the value three years from now? What…

A: An annuity is a series of payments which starts from 1st period and can end at any period, annuity…

Q: Interest rate with annuity. What are you getting in terms of interest rate if you are willing to pay…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: how much money would you need to have in annuity paying 6% interest if you want to be able to…

A: Approach to solving the question:Please see attached photo for detailed solution. Thank you.Detailed…

Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…

A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%

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: You make annuity payments of $25,000 per year for the next 11 years. If you earn 6.67% return, how…

A: Annual Payment (P) = $25,000Number of years (n) = 11Rate of return (r) = 6.67% or 0.0667We need to…

Q: If you are expecting a settlement of $10000 at the end of each year for five years, how much this…

A: The question is based on the concept of calculation of present value of future annuity payment.…

Q: You buy an annuity, which will pay you $22,000 a year for twenty years. The payments are paid on the…

A: To calculate the present value of the annuity we will use the below formula   Present value =…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$12,000…

A: Given, Amount that can be withdrawn from years 11 to 16 is $12000 Additional amount at end of 16 th…

Q: You purchased an annuity that will make payments of $31,000 every 5 years for the next 10 years. If…

A: We need to use present value formula below to calculate annuity worth today.Annuity worth today =…

Q: if you have $100 in a savings account and the interest rate is 10% per year and you never withdraw…

A: The time value of money is the concept that explains that the value of money is different in the…

Q: You are offered an annuity that will pay $5,420 per quarter for 8 years (first payment made today).…

A: The objective of the question is to calculate the present value of an annuity that pays $5,420 per…