A 4-year decreasing annuity has 1st payment of $1000, and each subsequent payment is $200 lower than the previous payment (paid at the end of each year). Apply the 1st order modified approximation to estimate the annuity price when the annual effective interest rate decreases from 2.5% to 2% (keep 2 decimal places in your answer).
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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 valueWhat is the present value of a 3-year annuity of $120 if the discount rate is 7%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)What is the present value of a 3-year annuity of $180 if the discount rate is 7%? . What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
- Appendix 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…An annuity pays a fixed amount of $3,000 at the end of each of the next 5 years. Assume the interest rate is 8%. Use Excel, and list the time period (0, 1, 2, 3, 4, 5) and the amount $3,000. Then, Use Excel function to calculate the present value of the annuity.Use Excel function to calculate the future value of the annuity 5 years (enf of 5th year) from now.Submit the Excel file with all the details of time periods, amount of payment, and the Excel functions used to calculate the answers.Annuity payments are assumed to come at the end of each payment period (termed an ordınary onnuity), However, an exception occurs when the annuity payments come t the beginning of each period (termed an annuity due). What is the future value of a 12-year annuity of $1,400 per period where payments come at the beginning of each period? The interest rate is 7 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n= 6 and / 10 percent. Look up the value of 7716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 x 6716). (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value
- Use 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)Find the period of deferral (deferred annuity problem): A. Monthly payments of P1,000 for 9 years that will start 9 months from now B. Semi-annual payments of P8,500 for 8 years that will start 12 years from nowAnnuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). What is the future value of a 8-year annuity of $3,600 per period where payments come at the beginning of each period? The interest rate is 7 percent. (Round your final answer to 2 decimal places.) Future value
- a. What is the present value of a 3-year annuity of $280 if the discount rate is 6%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)Find the future value for the ordinary annuity with the given payment and interest rate. PMT = $700; 1.85% compounded semiannually for 4 years. The future value of the ordinary annuity is $. (Do not round until the final answer. Then round to the nearest cent as needed.)Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest compounded semiannually. What is the total investment? What is the interest? E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $. (Round to the nearest cent as needed.)