At your favorite annuity store. Annuities-R-Us, you see a security that offers 46 equal payments, with the first payment of $600 occurring today, and all other payments of $600 paid in succeeding 7-month intervals: payments will therefore be at months 0, 7, 14, 21 ... 294, 301, 308, and 315. You determine that the correct discount/compounding rate is a nominal annual rate of 5.0 percent, with monthly compounding. Given this information, determine the value of this annuity at Month 315. O $57,184 O $74,982 O $48,877 O $67,259 O $39,014

At your favorite annuity store. Annuities-R-Us, you see a security that offers 46 equal payments, with the first payment of $600 occurring today, and all other payments of $600 paid in succeeding 7-month intervals: payments will therefore be at months 0, 7, 14, 21 ... 294, 301, 308, and 315. You determine that the correct discount/compounding rate is a nominal annual rate of 5.0 percent, with monthly compounding. Given this information, determine the value of this annuity at Month 315. O $57,184 O $74,982 O $48,877 O $67,259 O $39,014

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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Two annuities are available for purchase that your client has identified. The first annuity pays $7,000 each six-month period over a 5-years period, at a nominal rate of 9% p.a. The annuity has an annual fee of $300, paid at the beginning of each year. The second annuity pays $1,000 each month, again over 5 years at a nominal rate of 10% p.a. and does not have an annual fee. If each of the annuities cost $50,000, identify which of the annuities you would recommend to your client.
TABLE 13.2 Present value of an annuity of $1 ½% 8% 1% 0.9901 2% 0.9804 3% 0.9709 4% 0.9615 5% 0.9524 1.8594 6% 7% 0.9434 0.9346 0.9259 9% 10% 11% 12% 0.9174 0.9091 0.9009 0.8929 0.9950 1.9851 1.9704 1.9416 1.9135 1.8861 2.9702 2.9410 2.8839 2.8286 2.7751 2.7232 3.9505 3.9020 3.8077 3.7171 3.6299 3.5459 1.7591 1.7355 1.7125 1.6901 2.5313 2.4869 2.4437 2.4018 3.2397 3.1699 3.1024 3.0373 3.8897 3.7908 3.6959 3.6048 4.4859 4.3553 4.2305 4.1114 4.9259 4.8534 4.7134 4.5797 4.4518 1.8334 1.8080 1.7833 2.6730 2.6243 2.5771 3.4651 3.3872 3.3121 4.1002 3.9927 4.6229 5.2064 5.7466 4.3295 4.2124 5.8964 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 6.8621 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.0330 4.8684 7.8230 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 8.7791 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 4.7122 4.5638 5.5348 5.3349 5.1461 4.9676 5.9952 5.7590 5.5370 5.3282 6.4177 6.1446 5.8892 5.6502 6.8052 7.1607 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101…
Give typing answer with explanation and conclusion
A 6-year term insurance policy has an annual premium of $500, and at the end of 6 years, all payments and interest are refunded. What lump-sum deposit is necessary to equal this amount if you assume an interest rate of 2.5% compounded annually? (a) State the type. future value present value of an annuity sinking fund amortization ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.) $
American General offers a 10-year annuity with a guaranteed rate of 9.39% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1400 annually over the 10 year period? How much should a customer pay for this annuity? (Round to the nearest cent.) Incorrect ti, 14e
Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream: Number of Payments or Years 10 19 25 80 Annual Interest Rate % (Round to two decimal places.) % (Round to two decimal places.) % (Round to two decimal places.) % (Round to two decimal places.) Future Value $0.00 $12,286.30 $0.00 $1,435,078.21 C Annuity Present Value $580.00 $444.01 $1,985.57 $450.00 $2,298.49 $0.00 $37,000.00 $0.00
please show the step by step solution. Do not skips steps. Explain your steps Please write on paper
calculate the future value (in $) of the annuity due. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity $80 every month 2 1 2 6 monthly $
Find the future value (FV) of the annuity due. (Round your answer to the nearest cent.) $165 monthly payment, 7% interest, 11 years
Find the term of the following ordinary general annuity. State your answer in years and months (from 0 to 11 months). Present Periodic Payment Interval Interest Compounding Period Value Payment Rate $10,300 $330 month 3% semi-annually The term of the annuity is year(s) and month(s).
Construct an annuity table showing the deposits, interests, and balances for the saving plan below (compulsory to show the working steps to get the interest value): a) $350 is invested in an increasing annuity at the end of every 6 months for 3 years. The account pays 10.25% interest rate compounded semiannually. Period Beginning Interest Deposit Ending balance (Every 6 months) Balance 1 $0.00 $0.00 $350.00 $350.00 3 4 (Copy this table to your answer script)
An annuity-immediate has 21 payments of $800 per period. The effective rate of interest per period is 7% for the first 9 periods and 4% for the following 12 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.

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