An investor pays £80 at the start of each month into a 25-year savings plan. The contributions accumulate at an effective rate of interest of 3% per half-year for the first 10 years, and at a force of interest of 6% per annum for the final 15 years. Calculate the accumulated amount in the savings plan at the end of 25 years.

Q: At the end of each month for the next ten years you will receive cash flows of $75.  If the…

A: Present value of annuity = 75{1-(1+0.072)^-120}/0.072

Q: A loan is to be repaid by an increasing annuity. The first payment will be £100 and the payments…

A: Part 2:Explanation:i) Calculate the amount of the loan.The loan is to be repaid by an increasing…

Q: You borrow B20,000 for a term of 20 years to be repaid by level annual instalments. The rate of…

A: The regular fixed periodic payments made are considered annuity payments. The current worth of all…

Q: You have opened a financial instrument that requires the following for the next six years: An…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: An annuity is paid half-yearly in arrears at a rate of 3000 per annum, for 20 years. The rate of…

A: The Future value of the annuity refers to the sum value of all the payments which is occurred…

Q: A company wants to have $40,000 at the beginning of each 6-month period for the next 4.5 years. If…

A: The given problem is on Annuity due Annuity due is an annuity whose  payment is due immediately at…

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: Final amount = $50,000Time = 4.5 years Rate = 6.23% compounded semi-annually

Q: On January 1, 2021, you deposited $5,500 in a savings account. The account will earn 10 percent…

A: In many financial computations, such as investment analysis, retirement planning, and assessing the…

Q: A loan of $10200 is to be amortized with quarterly payments over five years.  The interest on the…

A: Amortization of a loan refers to the process of gradually paying off the loan debt over a specific…

Q: What is the present value of an annuity of $6,000 to be received at the end of each of the next…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: The future value of an ordinary annuity of $1,000 each year for 10 years, deposited at 3 percent, is

A: Payment (PMT) = $ 1,000 Tenure (N) = 10 years Rate (R) = 3%

Q: The effective rate of interest is 6% per annum. Calculate the value at the start of the payment…

A: concept. Future cash flows are discounted to present value using discounting  rate of return. this…

Q: Find the present value at outset of a level annuity of £1500 per year, payable annually in arrears…

A: The money's time value concept states that any sum of money is worth more now as compared to what it…

Q: Find the future value (in dollars) of the investment. (Round your answer to the nearest cent.)…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  where, P= annuity amount i.e. $8000 r =rate of…

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: Time Period = 20 Years Interest rate = 5% Present Value = $180,000

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: Payments of $1000 each are made at the end of every year for 6 years to a savings account. Calculate…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: The effective rate of interest is 4% per annum. Calculate the value at the start of the payment…

A: Value of the annuity at the start of the payment stream with advance annual payment is calculated as…

Q: Find the present value of an ordinary annuity which has payments of $1000 per year for 12 years at…

A: The present value of an ordinary annuity is the present value of the same cash flows occurs at the…

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: what is the value of the annuity today

A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: firm has decided to make an investment, an ordinary annuity of $10,000 per year for fifteen years.…

A: Future value FACTOR ANNUITY =(1+r)n - 1/r r=interest rate =4% Period =15 years