An accounting firm agrees to purchase a computer for $130,000 (cash on delivery) and the delivery date is in 270 days. How much do the owners need to deposit in an account paying 0.55%compounded quarterly so that they will have $130,000 in 270 days? (a) State the type. sinking fundamortization ordinary annuitypresent valuefuture value (b) Answer the question. (Round your answer to the nearest cent.)

Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…

A: using FV formula of excel to calculate the future value, =FV(rate,nper,pmt,[pv]) rate = rate of…

Q: A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years.…

A: Using excel PV function

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: Use graphical approximation techniques to answer the question. When would an ordinary annuity…

A: Future value:The term "future value" refers to the expected value of an investment at a future…

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A: Perpetuity refers to a financial concept where a stream of cash flows continues indefinitely. It is…

Q: merchant receives an invoice for $8000 with terms 2/10, n/50. a) What is the maximum interest rate…

A: Discount is the amount to be paid less than actual prices and that is done for the early payment of…

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: A local bank advertises the following deal: "Pay us $100 at the end of each year for 12 years and…

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

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Q: A local bank advertises the following deal: "Pay us $100 at the end of each year for 12 years and…

A: A deferred perpetuity involves a stream of regular payments that starts at a certain point in the…

Q: If you put up $45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual…

A: Annual cash flows are the regular payments or cash receipts received or paid out on an annual basis…

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: What's the future value of a 3%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: Interest Rate = r = 3%Time = t = 5 YearsAnnuity = a = $300

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A: Present Value = pv = $1 millionInterest rate = r = 2.3%Time = t = 20 Years

Q: What's the interest rate of a 5-year, annual $4,200 annuity with present value of $16,000? (Use a…

A: Solution:-When an equal amount is paid each period, it is known as annuity.We know, present value of…

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: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: A: The formula for periodic deposit is: P = FV*r/(1+r)^n-1 Where P is the amount of periodic…

Q: annuity

A: Annuity can be defined as series of payments which are made at regular intervals. Examples of…

Q: Use graphical approximation techniques to answer the question. When would an ordinary annuity…

A: An annuity is a type of contract usually used in the insurance industry. It provides a periodic…

Q: Suppose that a woman deposits $10,000 into an investment fund that guarantees to pay 0.5% interest…

A: Effective annual interest rate:The effective annual interest rate is a critical concept in the world…

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4 1/2 years. If…

A: Annuity is the regular payment to be made for specific number of years. There are two types of…

Q: A company needs to buy an annuity package that will provide a future income to an individual over a…

A: Annuity amount, A1 = £4,421 Period, n1 = 13 years Interest rate per period, r1 = 4.0% The present…

Q: What is the future value of a 9%, 5-year ordinary annuity that pays $450 each year? Do not round…

A: The formula used to calculate future value of annuity is FV of ordinary annuity = Pmt*((1+r)n-1 )/r…