Assume that Kikay Company is to make annual investment of P500,000 for five years. The interest for this investment was pegged at 10%. The investment is made at year end. What is the future value of this annuity?

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4.5 years. If…

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

Q: What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the…

A: The future value of a single payment is only referred to as simple future value. An annuity requires…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: ind the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

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

A: Principal Amount = p = $10,200Compound = Quarterly = 4Time = t = 5 * 4 = 20Interest rate = r = 7.5 /…

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

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: The effective rate of interest is 6% per annum. An annuity is payable annually in arrears for 25…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: a. Calculate the annual cash flows ( annuity payments) from a fixed - payment annuity if the present…

A: Annual cash flows refer to the amount that defines the inflow and outflow of the cash during the…

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest…

A: Calculation of future value of annuity: Answer: Future value of annuity is $20,724.67

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: Find the present value of an investment in plant and equipment if it is expected to provide annual…

A: Formula: Present value of an investment in plant and equipment = [ Annual earnings x Present value…

Q: Leberland Corporation deposits $100,000 every year in a savings account (beginning at the end of the…

A: The objective of this question is to calculate the future value of an ordinary annuity. An ordinary…

Q: What is the future value of an annuity of 15 deposits of $6407 at the end of each year with a…

A: Step1: Calculating the future value of annuity. We have,Future value of annuity = P [(1+r)n – 1] /…

Q: Find the present value of an investment if it is expected to provide annual earnings of $20,000 for…

A: Present value can be defined as how much is the worth of the future sum of money at present provided…