Find the present worth of a series of equal quarterly payments of P 750.00 for 18 years with the first payment starting three months from now. The applied interest rates are: 4% compounded quarterly for the first five years, 5% compounded quarterly for the next five years, and 5% compounded quarterly for the remaining eight years.

Q: Two annuities - certain of 1 p.a. are each payable half-yearly for n years. The first payment under…

A: In Time Value of Money (TVM), annuities are a sequence of equal payments that are given or received…

Q: Determine the present value of a series of 30 quarterly payments of $3,500 each which begins one…

A:

Q: d the current value to the nearest dollar on January 1 of an annuity which pays $2,000 every six…

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A: The present factor is the present value of $1 that has to be received/paid in the future.

Q: future value and the present value of an annuity of 15,000 payable at the end of every three months…

A: Given information : Annuity  $    15,000.00 Total payments 30 First payment due 7 Interest…

Q: Find the present value of the following annuities: 500 payable semi-annually for 10 years if the…

A: Solution:- When an equal amount is paid each period, it is called annuity. Present value of annuity…

Q: Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of…

A: 1. Present value of annuity when payments are made at the end of year.PV = A * where,PV = Present…

Q: Find the effective interest rate for a $20,000 for three years if the interest is compounded…

A: Effective interest rate:Effective interest rate is also called as annual equivalent rate which is…

Q: A loan of P500, 000 is to be amortized with quarterly payments for five years at the rate of…

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Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

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Q: The interest rates over the next four (4) years are as follows: The annual effective interest rate…

A: Present value is the equivalent value of money today that is to received in the future based on time…

Q: Calculate the cumulative value of an annuity series that starts immediately and makes payments of 10…

A: This is an example of an annuity due that starts immediately.  Given: Annuity payment "PMT" = 10000…

Q: An annuity-pays 18,000 per year for five years. The annual interest rate is 6%. Find the present…

A: i) Determine the present value of the annuity using the Excel PV function with the following inputs:…

Q: Find the PV of an annuity-due with payments of GHS1,800 every 6 months for 8 years at a nominal rate…

A: present value of an annuity due is discounting  the series of equal payments made at the beginning…

Q: What is present value of annuity A

A: First payment = $1000Period = 20 yearsIncrement = 3%Interest rate = 5%

Q: Find the future value of an annuity of P5,750 payable at the end of each quarter for 8 years if the…

A: Solution Annuity 5750 Period 8 years Number of annuity period =8*4 =32 Rate of…

Q: A sum of $80,000 is to be repaid over a 10-year period through equal installments made at the end of…

A: Interest, in finance and economics, is payment from a borrower or deposit-taking financial…

Q: 5) Determine the present value at time 0 of payments of $1,000 at the start of each month for 5…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: The effective rate of interest is 6% per annum. An annuity is payable annually in arrears for 25…

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A: Investment is an excellent way to build wealth over the long term. By investing in assets like…

Q: Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest…

A: Calculation of future value of annuity: Answer: Future value of annuity is $20,724.67

Q: The effective rate of interest is 6% per annum. Calculate the value at the start of the payment…

A: concept. Future cash flows are discounted to present value using discounting  rate of return. this…

Q: Find the present value and accumulated value of an annuity-immediate of P100 payable every six…

A: An annuity immediate is a type of annuity where regular payments begin immediately, usually within…

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A: The money's time value concept states that any sum of money is worth more now as compared to what it…

Q: Find the present and the future value of quarterly payments of $2,000.00 for 5 years with interest…

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A: Calculation of yearly payments = [P x R x (1+R)^N]/[(1+R)^N-1] P = Principal amount R = Rate of…

Q: Calculate the present worth of 11 uniform payments of $7,200 that begin 1 year from now at an…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: Find the present worth of a series of equal quarterly payments of 750.00 for 16 years with the first…

A: The annuity is considered as the periodic payment which is being compounding over the period of time…

Q: A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months.…

A: 1. Calculate the amount of periodic payments by using the EXCEL PMT formula. Note that there are 35…

Q: the formula  find the monthly payment of an ordinary if the present value is P18,500 with an…

A: Present value of money is that equivalent money that includes interest and principal amount. That is…

Q: The effective rate of interest is 4% per annum. Calculate the value at the start of the payment…

A: Value of the annuity at the start of the payment stream with advance annual payment is calculated as…

Q: Find the present worth of a series of equal quarterly payments of P 750.00 for 16 years with the…

A: Amount of each quarterly payment=750 No. of years=16 Interest rates: For the first 5 years=1%…

Q: Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: Compound = Quarterly = 4Future Value = fv = $19,654Time = nper = 4 * 4 = 16Payment = pmt =…

Q: Determine the present value of 15 equal quarterly payments of P1,200 where the first payment starts…

A: Solution Concept To get the present value of the future values , we need to discount the future…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.