An annuity has payments at the beginning of every three months starting today. The first payment is $100 and payments increase by 1% every three months for the first four years, making the 16th payment $116.10 to the nearest cent. After this, payments increase by $1 every three months for 32 additional payments, making 48 payments in total. If d(5) = 5.5%, find the present value of this annuity.

An annuity has payments at the beginning of every three months starting today. The first payment is $100 and payments increase by 1% every three months for the first four years, making the 16th payment $116.10 to the nearest cent. After this, payments increase by $1 every three months for 32 additional payments, making 48 payments in total. If d(5) = 5.5%, find the present value of this annuity.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

A thirty-year annuity has end - value of the annuity if i = 3 % - 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 (Round your answer to the nearest cent.)
A 15-year annuity pays $1,750 per month, and payments are made at the end of each month. If the APR is 9 percent compounded monthly for the first seven years, and APR of 6 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,706 is deposited into this annuity every month, how much is in the account after 10 years? How much of this is interest? Type the amount in the account: $ (Round to the nearest dollar.)
An annuity-immediate has 28 payments of $200 per period. The effective rate of interest per period is 6% for the first 12 periods and 3% for the following 16 periods. (A) Find the accumulated value of the annuity. Round your answer to 2 decimal places. (B) Find the present value of the annuity. Round your answer to 2 decimal places.
There is a perpetuity due in which the payments increase by 5 percent per year, and the present value of the 6’th payment is equal to the present value of the 8’th payment. The first payment is 500 dollars. Find both the effective interest rate and the present value.
An annuity pays $1000 at the end of each year for 5 years and then $2000 at the end of each year for the next 7 years. Find the discounted value of these payments if the relevant interest rate is 7% per year.
What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment occurring at the end of year 10 ( that is, ten 1,600 payments occurring at the end of year 10 through year 19), given a discount rate of 9 percent?
An annuity pays $15 per year for 60 years. What is the future value of this annuity at the end of that 60years given that the discount rate is 7%?
If you have a 13-year annuity paying $305 quarterly in 5 years when interest is 3.25% compounded semi-annually, what is the number of missed payments? Treat the deferred annuity as an ordinary annuity with the first annuity payment at the 5-year mark.
A continuously paying level annuity pays $70.00 each year for ten years. The force of interest is 11 + t Find the present value of this annuity. Round your answer to the nearest cent.
The monthly compounded interest rate is 10%. What is the effective annual interest rate and what is the present value of an annuity cashflow stream of $100 to be received every quarter for the next three years? Give answers to two decimal places and show all your workings.
Recently, More money 4U offered an annuity that pays 6.0% compounded monthly. If $1,264 is deposited into this annuity every month, how much is in the account after 12 years? How much of this is interest?

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