A perpetuity-immediate pays $100 in the first 10 years, $150 in the next 10 years and $200 in all subsequent years. Determine the present value of these payments at an annual effective interest rate of 3.85%.
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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?A perpetuity-immediate has payments of 10 at the end of year 1, 12 at the end of year 2, and level payments of 14 at the end of each year thereafter. Calculate the duration of the perpetuity if the annual effective interest rate is 6%.An annual annuity-immediate pays $2000 at the end of the first year. The last payment is at the end of the 30th year. Assuming an annual effective interest rate of 6%, calculate the present value of the annuity if (a) each subsequent payment is 5% greater than the preceding payment.
- Find the present value of each ordinary annuity. Payments of $1400 are made semiannually for 8 years at 6% compounded semiannually.Consider a perpetuity that pays 100 at the end of each year for the first 10 years and 50 at the end of each year thereafter. Find the PV of this perpetuity at an effective annual rate of interest of 2%.Find i (the rate per period) and n (the number of periods) for the following annuity. Semiannual deposits of $3,200 are made for 99 years into an annuity that pays 7.5% compounded semiannually.
- A certain annuity pays $108 at the end of every 3 months. If the present value of the annuity is $1,200 and the accumulated amount is $2,000, determine the nominal rate.In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the accumulated amount of the annuity. (Round your answer to the nearest cent.) $2500 annually at 7% for 10 years.A perpetuity pays $ 100 each year , with the first payment scheduled two years from now . Assume that the effective annual interest rate for the next five years is 8 % , and thereafter it is 5 % . Find the present value of the perpetuity .
- A perpetuity will pay $800 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 3%?Determine the present value of an ordinary annuity paid annually for 25 years if payments are 1.200$ per year for the first 7 years, 5.500$ for the following 8 years and 2.500$ in the final 10 years. Interest is j12 = 6% throughout the entire period.An annuity-immediate has payments of $400, $600, $100 at the end of year for three years. Determine the convexity of the payments evaluated at an annual effective rate of interest equal to 6%.
