An annuity is paid at a rate of $250 per month. Assume that investments can earn interest at 4% per year compounded continuously throughout the life of the annuity payments. What is the present value of this annuity if it is paid out over 10 years? What is the present value of this annuity if it is paid out in perpetuity? In each case, what does the present value of the annuity represent?

Q: ​Recently, More Money 4U offered an annuity that pays 6.3% compounded monthly. If $1,492 is…

A: Given:More Money 4U offered an annuity that pays 6.3% compounded monthly. If $1,492 is deposited…

Q: Suppose you are planning to save money for a future expense. You decide to deposit $500 at the end…

A: Annuity Formula: The future value of an annuity, where payments are made at regular intervals and…

Q: A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After…

A: we know the formula of future value  FV=PMT(1+i)n-1i where PMT - perodic payment  i - discount rate…

Q: If lottery winnings of Q are invested now at an interest rate of 9%, how much is available to help…

A: If lottery winnings of Q are invested now at an interest rate of 9%, how much is available to help…

Q: An investment makes payments of $575 at the start of each year for 100 years. The rate or return of…

A: Given: Principal amount, P=$575 Number of years, t=100 Rate of interest, r=3.7% Number of times…

Q: A butcher shop knows that it mu"buy a new machine in 3 years. The machine costs $11,000. in order to…

A: Given formula  FV = PMT[ ( 1 + i )n - 1 i ] Where FV is the future value PMT = monthly payment  i is…

Q: A graduate gets a good job and decides to save $200 per month into a 401K fund on payday, the last…

A:

Q: Month end contributions of $500 are made to an account for 10 years. For exactly 7 years following…

A:

Q: Phillip invested $11,500 into a fund earning 6.50% compounded monthly. He plans to withdraw $750…

A: Given : Principal(P)=$11,500 rate of interest(r) compounded monthly=6.50%=0.065 t=3 years The…

Q: parents of a newborn boy begin saving for his college education. They plan to have $150,000 in a…

A:

Q: An architect is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A:

Q: The future value of that money is?

A: P = Principal Amount = 6000 R = Rate of Interest = 8% n = no. of interval = 1 year

Q: If $1000 is deposited in an account earning 1% simple interest, what is the future value in 5 years?

A: Given that, the investment amount I=$1000, interest rate r=1% and time T=5 years. It is known that,…

Q: The bank is offering a special rate of 4.5% to anyone willing to invest $10,000 for 5 years,…

A: Here, principal (P)=$10,000               Time (t)=5 years rate of interest (r)=4.5%=4.5100=0.045…

Q: Find how much money needs to be deposited now into an account to obtain $900 (Future Value) in 9…

A:

Q: Find the simple interest on a $2,000 investment made for 5 years at an interest rate of 5% per year.…

A:

Q: A woman deposits $11,000 at the end of each year for 10 years in an account paying 5% interest…

A: Given, a woman deposits $11,000 at the end of each year for 10 years in an account paying 5%…

Q: Find the time necessary, in years and days, to achieve a future value of $1000 when the original…

A: It is given thatOriginal amount=$550Future value=$1000Rate of interest=8%To find:Time period(t)