Calculate the present value of $2,000 for each of the following: interest rate is 12%Show workthe following way: PV factor from the table * $2,000 = Table factor Year 1:Year 3:Year 2:What is the sum of the present values? Why is the present value of anamount to be received in 3 years less than the amount to be received in one year? Calculatethe future value of an annuity of $2,000 to be received over 40 years at 12%.

Step 1:a)We have to calculate the present value of the cash flow.Calculations are shown below: We…

Answered: Calculate the present value of $2,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals Round your answer to the nearest cent.) $300 per month for 20 years, if the account earns 6% per year and if there is to be $10,000 left in the annuity at the end of the 20 years PV=5 Need Help? Pe ww
Valuation of Financial Instruments / Determine knowledge An annuity due pays $120,000 each year for 80 years. If the going rate of interest is 40 percent per year, the present value of this annuity due is $ Use the following formulas to complete this problem: PV=PMT [1-(1+r))) / r]*(1+3) or =PV (Rate, Nper, PMT, FV, Type).
Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. Compound Term of Investment Nominal Interest Compound Interest Present Amount Rate (%) Compounded Value $300,000 10 years 4 annually Need Help? Read It
• model investment and annuity problems;• solve exercises applying concepts of the sum of sets of terms of a sequence, and• solve problems related to annuities using sequences or series. An annuity pays $15,000 per year. Due to inflation, each year a dollar is worth what $0.970 was worth the year before. Payment is made at the beginning of each year. What is the present value of the annuity if it is paid over three years (starting immediately)?
Solve the problem. solve using the formula for the future value of an ordinary annuity. given the monthly payment, capital, the annual interest rate, are, and the number of monthly payments, antique, find the future value of the annuity. R=$1300; r = 8.5%; nt= 17 A) $24,398.04 B) $17,548.36 C) $23,397.81 D) $24,198.38 Please search only correct answer as I am | paying for this and I keep receiving incorrect one
Question 1 Assume you are planning to invest $5,700 each year for six years and will earn 7% per year. Determine the future value of this annuity due problem if your first $5,700 is invested now. Please show each step of your calculation.
Use tabular presentation to support your answer
Find the future value of an annuity due for payments of $450 for 12 years with a rate of 0.24% compounded annually. Use the formula: FV = PMT1+)". (1+01 - PMT %3D Express your answer with the proper unit rounded to the nearest cent.
Subject:- finance
Calculate the present value of the following annulties, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of S1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) \table[[, \table[[Annuity], [Payment]], \table [[ Annual], [Rate]], \table[[Interest], [Compounded]], \table [[Period], [Invested]], \table [[Present Value of], [ Annuity]]], [1., $5,000, 7.0%, Semiannually,3 years,], [2., 10, 000, 8.0%, Quarterly,2 years, ], [3., 4,000, 10.0 %, Annually,5 years,]]
Problem 1: Read each problem carefully and answer each question to solve the problem. Find the period of deferral in each of the following deferral annuity problems (one way to find the period of deferral is to count the numnber of artificial payment (k). Make a diagram 1. Payment of P 3,000.00 every 3 months for 8 years that will start 6 years Time Diagram Answer
Consider the following case Amount of Annuity: $26,000 Interest Rate: 12% Period of years: 12 Calculate the present value of the annuity assuming that is it a oridinary annuity and a annuity due.

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