A 6-year term insurance policy has an annual premium of $500, and at the end of 6 years, all payments and interest are refunded. What lump-sum deposit is necessary to equal this amount if you assume an interest rate of 2.5% compounded annually? (a) State the type. future value present value of an annuity sinking fund amortization ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.) $

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: What is the present value of a 6-year annuity of $2,250 per period in which payments come at the…

A: Present value refers to the current value of a future sum of money or cash flow, discounted at an…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Annuity refers to the contract that is made between the insurer and the insurance company for making…

Q: A) Use the appropriate formula to find the value of the annuity. B) Find the interest. Periodic…

A: Part (a)If an annuity A is paid at the end of period over N periods and bears a discount (interest)…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Amount of deposit(m): $800 Frequency(n): annually Rate(r): 1% Time(t): 30 years

Q: Solve by using formulas. (Round your answer to the nearest cent.) Ordinary Annuity Payment Time…

A: PRESENT VALUE Present value (PV) is the current value of a future sum of money  The value in the…

Q: Need Help? Submit Answer $100 Read It Watch It monthly 6% 7 yr

A: Monthly deposit=$100Interest rate is 6%Period is 7 yearsCompounding monthly.

Q: future value

A: Future value is the value of money or asset in the future. It is very important to investors and…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Amount of deposit = 250Interest rate= 3%Time =20 yearsTo find: The value of the annuity at the end…

Q: An insurer needs to make the following annuity payments to an individual: £445 paid at the end of…

A: To calculate the present value of the annuity payments, we need to discount each payment back to the…

Q: Future value of an annuity Using the values below, answer the questions that follow. (Click on the…

A: Odinary annuity is where payment is due at end of period and annuity due is where payment is due at…

Q: Solve by using formulas. (Round your answer to the nearest ce Present value (in $) of an annuity due…

A: Solution- Period Principle amount PV @ 5.7% Present value 1 1200 .94607 1135.284 2 1200…

Q: The value of the annuity is ​$______.

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) Note: Do not…

A: An ordinary annuity is a series of fixed payments received or paid at a fixed interval for a defined…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In this we need to find out monthly payment required for sinking fund.

Q: Find the amount accumulated FV

A: Future value is the value of today’s money at some future time period. It is calculated by using the…

Q: If 5 deposits of $600 each are made into an account at the end of years 9, 10, 11, 12, and 13, what…

A: Deposit in year 9,10,11,12 and 13 = $ 600 Future value period = Year 25 Annual interest rate = 12%

Q: Solve by using formulas. (Round your answer to the nearest cent.) Present value (in $) of an annuity…

A: Present value of annuity due is calculated using following equation Present value =…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Ordinary annuity are the payments which are made at the end of the period.

Q: Present value (in $) of an annuity due

A: We can determine the PV of annuity due manually using the formula below:In the formula above PMT =…

Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment R,…

A: We need to use future value of ordinary annuity formula to calculate future value..  Where FV =…

Q: A 6-year term insurance policy has an annual premium of $500, and at the end of 6 years, all…

A: Given: Number of years "n" = 6 Annual Premium "PMT" = $500 Interest rate = 2.5% compounded annually…

Q: a. What is the present value of a 3-year annuity of $110 if the discount rate is 5%? (Do not round…

A: Annuity means a contract in which the financial institution pays an amount that gives the fixed…

Q: Someone needs to make the following annuity payments to an individual: £445 paid at the end of each…

A: The PV of an investment refers to the combined value of the cash flows of the investment assuming…

Q: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: There are two types of annuities, i.e., ordinary annuity and annuity due. An ordinary annuity is a…

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic…

A: The annuity is a series of periodic deposits/payments made at regular intervals. The discounted…

Q: Solve by using formulas. (Round your answer to the nearest cent.) Ordinary Annuity Annuity Payment…

A: Future value refers to the value of annuity at a future date. It can be calculated by compounding…

Q: calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.)…

A: An annuity refers to a series of periodic payments provided/received in exchange for a lump sum…

Q: 5) Consider a whole life annuity-due of 46,000 per year issued to a life age 65. Calculate the…

A: SOLUTIONGiven Informationlet's break down the informationWhole Life Annuity-Due: This is an annuity…