A perpetuity pays $3400 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 10.7%, what is the present value of this perpetual annuity?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf 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?4: A perpetuity pays $3400 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 10.7%, what is the present value of this perpetual annuity?
- An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How much would it cost to purchase this annuity today? O 103,500 87,339 81,367 O 133,591What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.(2) A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In subsequent years each payment increases by $5 over what it was the previous year. Find the present value of the annuity if i = 3%.
- A perpetuity paying 1.000$ at the end of each month is replaced with an annuity paying X$ each month for 10 years. Calculate X if j4 = 7% If the annuity paid 2.500$ at the end of each month, how long would the annuity last and what would be the size of the final, smaller payment?An annuity pays $ 15,000 per year. Due to inflation, each year a dollar is worth what $ 0.970 was worth the previous year. Payment is made at the beginning of each year. What is the present value of the annuity if it is paid over three years (starting immediately)?Suppose an annuity will pay $11,000 at the beginning of each year for the next 7 years. How much money is needed to start this annuity if it earns 7.7%, compounded annually? (Round your answer to the nearest cent.)$
- (Exercise 4.38) A perpetuity provides payments every 4 months starting today. The first payment is 1 and each payment is 1 % greater than the immediately preceding payment. Find the present value of the perpetuity if the effective rate of interest is 6% per annum. ANSWER =A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In subsequent years each payment increases by $5 over what it was the previous year. Find the present value of the annuity if i = 5%. (Round your answer to the nearest cent.)An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an annuity paying an amount at the beginning of each month for 15 years. Money is worth 10% compounded annually. Determine the following: a.) Present Value of the Payment. b.) Amount being paid at the beginning of each month for 15 years. Note: Don't use excel. Use or draw some cashflows.