7. Calculating Annuity Cash Flows For each of the following annuities,calculate the annuity payment.LO 1Future ValueYearsInterest Rate$ 21,8001,500,0005%40520,00098,700258134

Annuity cash flows is a cash flow which leads to a same increase or decrease in the cash flows of a…

Answered: Calculating Annuity Cash Flows For each…

Calculating Annuity Cash Flows For each of the following annuities, calculate the annuity payment. Future Value Years Interest Rate $ 21,800 1,500,000 520,000 98,700 8. 5% 40 25 8 13

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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Question

7. Calculating Annuity Cash Flows For each of the following annuities,
calculate the annuity payment.
LO 1
Future Value
Years
Interest Rate
$ 21,800
1,500,000
5%
40
520,000
98,700
25
8
13
4

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Find the FUTURE VALUE in SIMPLE ANNUITY of each of the following scenarios where R is the regular payment and r is the interest rate. Round off your answers in two decimal places. Regular Compounding Time Future in Payment (R) r Frequency Value Years Php Php 4750 4% annually 6. Php 6.3% semiannually Php 2500 Php 14 quarterly 5.5% Php 1000
Use Table 12-1 to 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 $500 every 6 months 11 10 semiannually
How much more is a perpetuity of $6,000 worth than an annuity of the same amount for 10 years? Assume an interest rate of 9% and cash flows at the end of each year. a. $99,212 b. $34,740 c. $58,097 d. $28,161
For each of the following annuities, calculate the annuity payment. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Annuity Payment Future Value $ $ $ $ 25.450 1,090,000 928,000 145,000 Years 8 39 25 14 Interest Rate 4% 6 7
Lepp Complete present value of an ordinary annuity: Note: Round your answer to the nearest cent. Amount of Annuity Expected $ 16,000 Payment Payable Years Quarterly 2 Interest Rate earned 12% Present value
What is the future value of an annuity due of $800 paid semi-annually for the next 7 years, with a yield of 5% p.a. compounded semi-annually? Select one: a. $13,215.16 b. $6,923.22 c. $11,200.00 d. $13,545.54
Use the ordinary annuity formula shown to the right to determine the accumulated amount in the annuity. $700 invested monthly for 40 years at a 4.0% interest rate compounded monthly A=p1+rnn•t−1rn The accumulated amount will be
he future value of an ordinary annuity with $200 annual deposits into an account paying 6% interest over the next 10 years will be a. $1,987.56 b. $2,636.16 c. $2,794.37 d. $2,120
Individual Assessment 1.a: Simple Ordinary Annuity Directions: Calculate the future value of #1, 2, & 3 and present value of #4 & 5. Mode of Payment Annually Monthly Quarterly Length of Annuity 3 years 5 years 4 years Length of Annuity 10 years 2 years Principal Interest Future Rate Value 1. P20,000 2% 2. P1,500 7% 3. P4,300 3.50% Principal Interest Mode of Present Rate Payment Value Semi-annually Bimonthly 4. P5,000 3.20% 5. P3,800 6%
Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:
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