Answered: Find the future value of a 10-year…

Find the future value of a 10-year annuity due with payments of $23,000 and an annually compounded interest rate of 4%. The future value is $ (Round to the nearest cent.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

See similar textbooks

Related questions

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 4%…

A: Future value of an annuity: The worth of a sum of money that will be paid on a specified date in…

Q: Find the value of an ordinary annuity if payments are made in the amount of R and interest is…

A: Annuity means regular payments or receipt of the same amount at the same interval period. Future…

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.

A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…

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: The present value of an annuity is given. Find the periodic payment. (Round your final answer to two…

A: Present value of annuity = Payment,*1/r[1-(1/(1+r)^n]] Where r= 7.3%/4 = 1.825% n= 4 quarters*20…

Q: Find the future value of a 12-year annuity due with payments of $3,000 and an annually compounded…

A: The future value of an annuity due is the value of a series of equal payments made at the beginning…

Q: The value of the annuity is $______.

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: value of the given annu

A: The future value of the annuity can be calculated as follows :

Q: he present value of an annuity is given. Find the periodic payment. (Round your final answer to two…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Find the present value of an ordinary annuity with deposits of $11,055 semiannually for 10 years at…

A: An annuity's present value is the current value, discounted at a certain rate, of a series of future…

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: Calculate the present value AND the future value of an annuity with a monthly cash flow of $100,…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Find the future value of the ordinary annuity. Interest is compounded annually. R=8000; i=0.07; n=15…

A: Future value of ordinary annuity = P x [(1 + i)^n - 1]i where, P = Annuity amount i = rate of…

Q: Find the present value of an annuity with monthly payments of $8,333.33, at an interest rate of 5.5%…

A: Present value of annuity cash flow = whereA = Periodical cash flow = monthly payment = $8,333.33i =…

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 3%…

A: Annuity amount, A = $1,000Number of compounding periods, n = 4*2=8Interest rate per period, r = 7%/2…

Q: Calculate the present value of a 3-year ordinary annuity of $100 if the appropriate interest rate is…

A: Ordinary Annuity N = 3 Annuity Amount = 100 Interest rate = 10%

Q: Determine the present value of an increasing perpetuity-due with annual payments starting at 100 and…

A: An annuity is a payment series that provides a periodic sum to the annuity holder in exchange for a…

Q: Find the future value of an ordinary annuity it payments are made in the amount R and interest is…

A: Future Value of Ordinary AnnuityThe future value of an ordinary annuity represents the total value…

Q: Find the monthly payment that will yield the future value of $255,000 using an ordinary annuity at…

A: Here,FutureValue (FV) is $255,000Interest Rate (r) is 10.75%Time Period (n) is 42 yearsCompounding…

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…

A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5

Q: Find the future value of an annuity due of $1,500 semiannually for six years at 7% annual interest…

A: FV = PV * [(1 + i)n - 1] / iFV = PV * FVIFA(i,n) where, FV = Future Value of AnnuityPV =…

Q: Please assume an annuity due of $100,000 a year for 10 years. Assuming a discount rate of 6%,…

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

Q: Find the payment that should be used for the annuity due whose future value is given. Assum…

A: Annuity is a series of equal periodic payments at equal interval of period till maturity. When these…

Q: Find the future value (FV) of the annuity due. (Round your answer to the nearest cent.) $165…

A: Monthly payment = $165Interest =7%Number of years = 11 years

Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

Find the future value of a 10-year annuity due with payments of $23,000 and an annually compounded interest rate of
4%.
The future value is $. (Round to the nearest cent.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Find the future value of a 15-year annuity due with payments of $2,700 and an annual compound interest rate of 3.7%. The future value is $. (Round to the nearest cent.)
Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $21,000; monthly payments for 12 years; interest rate 5.3% The payment should be $ (Round to the nearest cent as needed.)
Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $15,000; quarterly payments for 12 years; interest rate 9.9% The payment should be $ (Round to the nearest cent as needed.)
Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R= $9000, 10% interest compounded annually for 5 years What is the future value of the ordinary annuity? (Round to the nearest cent.)
Find the future value of the following ordinary annuity. Payments are made and interest is compounded as given. R = $1,000, 5% interest compounded monthly for 6 years What is the future value of the ordinary annuity? (Round to the nearest dollar as needed.)
Find the future value of an annuity due of $1,500 semiannually for six years at 7% annual interest compounded semiannually. What is the total investment? What is the interest? E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $. (Round to the nearest cent as needed.)
Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if interest is earned at a rate of 5%, compounded annual. What is the future value?
Find the future value of the following ordinary annuity. Payments are made and interest is compounded as given. R = $500, 7% interest compounded quarterly for 8 years What is the future value of the ordinary annuity? $ (Round to the nearest dollar as needed.)
Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $168, 000; monthly payments for 5 years; interest rate 3% .
Find the future value of an annuity due with an annual payment of $14,000 for three years at 4% annual interest using the simple interest formula. How much was invested? How much interest was earned? What is the future value of the annuity? $ (Round to the nearest cent as needed.) How much was invested? S How much interest was earned? S (Round to the nearest cent as needed.) ←
Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=16,000; 4.3% interest compounded quarterly for 11 years. The future value of the ordinary annuity is $__ (Round to the nearest cent as needed.) The amount from contributions is $__ and the amount from interest is $__. (Round to the nearest cent as needed.)
Find the present value of an ordinary annuity with deposits of $11,055 semiannually for 10 years at 9.2% compounded semiannually. What is the present value? $ (Round to the nearest cent.)