CHAR is offered an annuity that will pay P24,000 per year for 11 years (the first payment will occur one year from today). If CHAR feel that the appropriate discount rate is 13%, what is the annuity worth to you now? Note: Round off your answers to whole numbers. No decimal places
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CHAR is offered an
year from today). If CHAR feel that the appropriate discount rate is 13%, what is the annuity worth to you
now?
Note: Round off your answers to whole numbers. No decimal places
Step by step
Solved in 2 steps
- What is the present value of a 3-year annuity of $180 if the discount rate is 7%? . What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $260 a month for the next 25 years. What is the rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)What real annuity (in today’s dollars) will $1 million support if the real interest rate at retirement is 2.3% and the annuity must last for 20 years? Note: Enter your answers in whole dollars, not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.
- You have an opportunity to buy a perpetuity that pays $69 a year forever starting a year from now for $1100. What interest rate makes this a fair price? Instruction: Round to three decimal places.You have decided to start saving money for your future. What is the future value of a 17-year annuity of $2.500 per year, assuming that you make your first payment today and the interest rate is 7 percent? (Enter your answer as a positive number rounded to 2 decimal places.) Answer is complete but not entirely correct. Future value 102.497.50 LWhat is the present value of a 3-year annuity of $120 if the discount rate is 7%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
- Suppose you invest in an annuity that pays 6% interest, compounded annually. You contribute $4,500 each year for 10 years, what is the value of the annuity at the end of 10 years? Enter your answer rounded to the nearest hundred dollars. Omit the dollar sign and comma ($42,570.21 should be entered as 42600.)What's the future value of a 3%, 5-year ordinary annuity that pays $300 each year? If this was an annuity due, what would its future value be? Do not round • intermediate calculations. Round your answers to the nearest cent.What is the future value of a 5-year ordinary annuity with annual payments of $ 702, evaluated at a 13.84 percent interest rate? Enter your answer to the nearest $.01. Do not use $ or, signs in your answer. Enter your answer as a positive number. Your Answer:
- You are offered the choice of two annuities. A: Receive $100 every year for the next ten years. The first payment starts one year from today. B: Receive $204 every two years for the next ten years. The first payment starts two years from today. Without calculating the present values of the annuities, explain how you can obtain the rate of interest per annum that would make you indifferent between the two annuities.What's the future value of a 5%, 5-year ordinary annuity that pays $100 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the nearest cent. Future Value of an Ordinary Annuity: $ Future Value of an Annuity Due: $What is the future value of a $500 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) FV = $_______.__