An annuity due has four payments, $2000 each. What's the present value of the annuity due at a 6% annual interest rate

Q: What is the value of an annuity at the end of 10years if $1,000 is deposited every six months into…

A: Introduction: Future value of an ordinary annuity can be defined as a metric which helps to know how…

Q: you have a 12-year annuity paying $496 quarterly in 10 years when interest is 6.65% compounded…

A: Number of annuity payments = Number of years * time period of Payment = Number of years * Quaterly…

Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…

A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

Q: A 20 year annuity pays $50 at the beginning of each month during the first year, $55 at the…

A: Time period = 20 years  Nominal annual interest rate = 6% Increase in the amount on yearly basis =…

Q: A 11-year annuity pays $1,400 per month, and payments are made at the end of each month. The…

A: The idea of the time value of money (TVM) holds that a quantity of income is valued sooner than it…

Q: A 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments…

A: First payment = $ 1000 Next 5 payments = $ 1000 Growth rate in payments after 6 payments = 5.06%…

Q: n annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate…

A: Present value of annuity can calculated by using Excel PV function.

Q: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…

A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…

Q: what is the present value of the perpetuity?

A: Present Value: It represents the present worth of the perpetual/constants cash flows. It is…

Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…

A:

Q: Assume that you make monthly payments of $ 750 into an ordinary annuity paying 4% compounded…

A: The time value of money concept will be used and applied here. Ordinary annuity means annuity or the…

Q: What is the amount of an annuity that consists of 100 monthly payments of $250 into an account that…

A: Given: Periodic payment (P) =$250 Rate of interest per month = 5% annually  Rate of interest monthly…

Q: An annuity with a cash value of ​$12,000 pays ​$2,050 at the beginning of every six months. The…

A: Annuity:  An annuity is the series of payments which is received or paid for a certain period of…

Q: A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is…

A: Computation of perpetuity at t=4:

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: Calculate the present value of an ordinary annuity providing $500 every year for 6 years. The…

A:

Q: Find the present value of a fifteen year ordinary annuity that pays $1,340 monthly if the interest…

A: The PV of the annuity is the present worth of the constant amount that has to paid or received in…

Q: An annuity with a cash value of $9,800 pays $880 at the beginning of every three months. The…

A: a) No. of payment =12.08 or 13 b) size of final annuity payment = $880

Q: A 20-year annuity pays $1,500 monthly, and payments are made at the end of each month. If the…

A: Monthly payments = $1500Period = 20 yearsInterest rate :First 10 years = 6.25%Next 10 years = 5.50%

Q: An investment is expected to result in equal payments of $300 at the end of each of the next 8 years…

A: Note: It is a case where no question is specified to solve among the multiple questions posted, so…

Q: A perpetuity pays $100 each year, with the first payment scheduled two years from now. Assume that…

A: Amount of $100 will be paid by a perpetuity and that will be started from year 2 (two year from…

Q: Safe Insurance Company offers a 40-year annuity. The annuity pays $1,000/year at the end of each…

A: To calculate the present value of the annuity, we can use the formula: PV = C x ((1 - (1 + r)^-n) /…

Q: 9) A retirement gratuity of $123 900.00 is invested in annuity deferred for 10 years. The annuity…

A: The present value of an annuity is the current worth of a cash flow paid/received at the begging of…

Q: An annuity provides for 12 annual payments. The first payment is $100, paid at the end of the first…

A: The above example is the type of growing annuity. We need to find out the present value of this…

Q: A 15-year annuity pays ¢5,500 per month, and payments are made at the end of each month. If interest…

A: The present value of annuity is the series of cash flows that occur with equal period of time. The…

Q: You purchase an ordinary annuity with 4% interest and will receive regular quarterly payments of…

A: The interest rate is 4% Quarterly rate, the rate is 4%4= 1% Regular Quarterly payment, PMT is $4500…

Q: Uptown Insurance offers an annuity due with semiannual payments for 20 years at 6 percent interest.…

A: Here,Present Value of Annuity is $200,000Interest Rate is 6%Time Period is 20 years

Q: A perpetuity pays $4200 at the end of every month for 11 months of each year. At the end of the 12th…

A: Perpetual refers to the forever transaction. This means an equal amount of cash flow at an equal…

Q: How much should be deposited into an account to set up an annuitv that will provide equal payments…

A: Present Value: Given a certain rate of return, the present value (PV) of a future amount of money or…

Q: Determine the value of an ordinary annuity if $100 is deposited each month into an account earning…

A: Deposit amount (P) = $100 Monthly interest rate (r) = 0.041/12 = 0.00341666666666667 Monthly periods…

Q: 2) A 15-Year annuity is purchased for 10,000 with level annual payment 800. what is the effective…

A: The time value of money is a concept in finance that takes into account the effect of compounding to…

Q: An annuity with a cash value of ​$12,000 pays ​$880 at the beginning of every three months. The…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Assume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded…

A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…

Q: A student will receive 3,000 at the beginning of each months for 4 years. What is the sum of this…

A: Annuities are referred to as the contracts that are issued as well as distributed by the financial…

Q: uppose the amount of an ordinary annuity that consists of 10 yearly payments of 150$ , provided that…

A: An ordinary annuity is a series of equal payments made at the end of consecutive periods over a…

Q: 5) You have an ordinary annuity of monthly payments of $500 per month with interest of 5% compounded…

A: Present value of annuity = payment * (1 - 1/(1 + r)^n)/r where payment = 500 r = 5%/12 n =12 Present…

Q: Assume that you make monthly payments of $ 675 into an ordinary annuity paying 6% compounded…

A: The amount after 12 years can be calculated as future value of annuity

Q: There is a perpetuity due in which the payments increase by 5 percent per year, and the present…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

Q: An annuity pays $1000 at the end of each year for 5 years and then $2000 at the end of each year for…

A: The discounted value is present value of future cash receipts