Find the present value of the following ordinary annuity.Payment Term InterestIntervalRatePeriodicPayment$26003monthsThe present value is $?6years4%ConversionPeriodmonthly

Given: Particulars Amount Periodic Payment(PMT) $2,600 Years 6 Interest rate 4%…

Answered: Find the present value of the following…

Find the present value of the following ordinary annuity. Payment Term Interval Periodic Payment $2600 3 months The present value is $? 6 years Interest Rate 4% Conversion Period monthly

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 20E

See similar textbooks

Related questions

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: The present value of an annuity is the current value of future payments from an annuity, assuming a…

Q: Complete present value of an ordinary annuity: (Round your answer to the nearest cent.) Amount…

A: Present value of annuity (PVA) is the stream of regular interval cashflow discounted at specified…

Q: Compounding Frequency Periodic Payment Interval Nominal Rate Term Payment $150 1 month 6.5 10%…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value…

A: Present value of annuity = $20000 Quarterly rent (Q) = $900 r = 4.7% per annum = 1.175% per quarter…

Q: Find the future value of the following ordinary simple annuity Payment Interval 1 month Periodic…

A: Annuity is a series of equal receipts/payments made at a regular interval of time (monthly,…

Q: The term of the annuity is year(s) and month(s).

A: Annuity refers to the pattern of payment made at equal intervals. It is a type of long-term…

Q: Determine the future value of the annuity due: Periodic Payment Nominal Compounding Payment ($)…

A: Payment = p = $750 Time = 6.5 * 2 = 13 semiannual Interest rate = (1 + (0.09 / 4))^(4 / 12) - 1 =…

Q: Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term…

A: Converting 7% compounding quarterly rate to effective rate Effective rate of interest = [(1+…

Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…

Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment R,…

A: The ordinary annuity means a series of equal payments made at regular intervals at the end of the…

Q: 5. Find the length of the term for the following annuity due. Express your answer in years and…

A: PV is the current value of the cash flows that are expected to happen in the future.

Q: Periodic Payment Interval Term Interest Rate Conversion Period Payment $1700 6 months 17 years 2%…

A: Future value of the ordinary annuity that are deposited at the end of period will includes the…

Q: Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term…

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

Q: Find the present value of the following ordinary simple annuity. Periodic Payment Interval…

A: Monthly payment (M) = $764 n = 8.25 years = 99 monthly payments r = 5% per annum = 0.41667% per…

Q: Find the future value for the ordinary annuity with the given payment and interest rate PMT=$700;…

A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, P = Periodic payment $700 r = rate of…

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: 1. Find the present value of the following ordinary deferred annuity. Periodic Payment Made Payment…

A: Annuity refers to series of equalized payments that either made at start or end of specified…

Q: Periodic Payment Find the present value of the following ordinary simple annuity Payment Interval…

A: An ordinary annuity is a series of recurring payments that are made at the end of a period, such as…

Q: me term of the following ordinary general annuity. State your answer in years and months (from 0 to…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: Find the future value of the following ordinary annuity. Periodic Payment Payment Interval Term…

A: Annuity refers to a constant and fixed amount of payment over a period of time. We can compute the…

Q: Find the future value of the following ordinary simple annuity. Periodic Payment $791.00 Payment…

A: Quarterly payment (P) = $791 Period = 3.25 Years Quarterly periods (n) = 3.25*4 = 13 Interest rate =…

Q: Find the future value of the following ordinary annuity. periodic payment $95 payment interval 1…

A: Periodic payment (C) = $95 Term (n) = 5 Years Interest rate = 0.11 or 11% Future value = ? Future…

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Payment Interval…

A: Future Value = fv = $7928Periodic rent = p = $349Compound = n = Semiannually = 2Interest rate = r =…

Q: Find the future value of the following ordinary annuity. Periodic Payment Payment Interval Term…

A: Converting 7% compounding quarterly rate to effective rate Effective rate of interest = [(1+…

Q: Find the future value of the following ordinary annuity. periodic payment $133.00 Payment Interval 1…

A: Future value refers to the value of the current asset at some future date affected by interest rate,…

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: Find the future value of the following ordinary annuity. Periodic Payment Interest Rate Payment…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…

A: Net present value is defined as the discounted cash flow technique which applies to weight the items…

Q: Find the future value of the following ordinary annuity. Periodic Payment - 1775 Payment Interval…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value…

A: Given: Present value = $9,500 Payment = $1,000 Payment interval = 6 n = 2 Rate of interest (r) =…

Question

Find the present value of the following ordinary annuity.
Payment Term Interest
Interval
Rate
Periodic
Payment
$2600
3
months
The present value is $?
6
years
4%
Conversion
Period
monthly

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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 the ordinary annuity. Interest is compounded annually, unless otherwise indicated.R = $1,000, i = 0.04, n = 13
Present values and Ordinary Annuity and Annuity Due A.) Find the present value of each of the following ordinary annuities. Complete the table Term of Annuity Compounding Period Annuity Payment Rate of Interest Present Value L1) Php 6.800 2 vears 6% monthly
Present value (in $) of an annuity due AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Present Valueof the Annuity $1,700 every year 5 5.7 annually $
Calculate the future value of the following annuities, 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 $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1. $3,100 8.0 % Semiannually 9 years $79,500.77 2. 6,100 10.0 % Quarterly 5 years 3. 5,100 12.0 % Annually 6 years
Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $2900 1 year 6 years 7% quarterly
Calculate the present value of the following annuities, 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 $1) Annuity Payment Annual Rate Interest Compounded Period Invested Present Value of Annuity 1. $5,200 7.0 % Annually 5 years 2. 10,200 10.0 % Semiannually 3 years $4,264.21 3. 4,200 12.0 % Quarterly 2 years
Calculate the present value of the following annuities, 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 $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of Annuity
. Find the future value of the following ordinary annuity. Periodic Payment - 1775 Payment Interval - 1 month Term -11 years Interest Rate - 8% Conversion Period - semi- annually The future value is $ ______?
The following table is for the present value of $1 at compound interest. Year 1 2 3 4 5 6% Year 1 2 3 4 5 0.943 0.890 0.840 0.792 0.747 The following table is for the present value of an annuity of $1 at compound interest. 6% 0.943 1.833 2.673 10% 0.909 0.826 0.751 0.683 0.621 3.465 4.212 12% 0.893 0.797 0.712 0.636 0.567 10% 0.909 1.736 2.487 3.170 3.791 12% 0.893 1.690 2.402 3.037 3.605 Using these tables, what would be the present value of $15,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%?
Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $324,000 at the end of 3 years, what is its present value? Group of answer choices $279,396 $291,703 $273,380 $250,193
Calculate the future value of the following annuities, 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 $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Annual Payment Rate $4,700 6.0 % 8.0 % 7,700 6,700 10.0 % Show Transcribed Text 1. 2. 3. Annuity Annual Payment Rate Interest Compounded Quarterly Annually Semiannually $ 5,700 Interest Compounded 8.0 % Quarterly 10,700 11.0% Annually 4,700 10.0 % Semiannually Period Invested 5 years 6 years 9 years Calculate the present value of the following annuities, 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 $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) $ Period Invested 2 years 5 years 3 years Future Value of Annuity 172,892.28 Present Value of Annuity
Find the future value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $3440 1 year 4 years 12% semi-annually