How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for 12.5 years if the money used to purchase the annuity can earn 7.5% compounded semiannually? (Do not round Intermedlate calculations and round your fnal onswer to 2 declmal places.) Cost $32086.4

Q: The first of 12 semiannual payments of $2,100 will be made 6 years from today. What is the present…

A: Present value The current value of an investment at a given interest rate is known as the present…

Q: The present value of an annuity using an effective annual discount rate of 12% is $40,043.69. This…

A: An annuity is a payment series where a periodic sum is paid in exchange for a lump sum payment. It…

Q: What is the PV of an ordinary annuity with a $5,700 duwterly payment for 5 years if the appropriate…

A: We need to use present value of ordinary annuity formula to calculate value of PV of annuity.wherePV…

Q: If you put up 23,000 today in exchange for a 6 percent, 10-year annuity, what will the annual cash…

A: Invested Amount = $ 23000Interest Rate = 6% Compounded AnnuallyPeriod = 10 YearsAnnual Cash Flow = ?

Q: An insurer needs to make the following annuity payments to an individual: £445 paid at the end of…

A: To calculate the present value of the annuity payments, we need to discount each payment back to the…

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

A: Present value of the ordinary annuity can be calculated by annuity amount multiply with Present…

Q: What real annuity (in today’s dollars) will $1 million support if the real interest rate at…

A: Present Value = pv = $1 millionInterest rate = r = 2.3%Time = t = 20 Years

Q: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,060 is deposited…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: An investment is expected to result in equal payments of $300 at the end of each of the next 8 years…

A: Note: It is a case where no question is specified to solve among the multiple questions posted, so…

Q: What is the present value of an ordinary annuity with annual payments of $670 at 8% annual interest…

A: Given,The annual payment is, PMT = $670The interest rate per period is, r = 8% = 0.08The total…

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

Q: A 15-year annuity pays $2,050 per month, and payments are made at the end of each month. If the APR…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Use the TVM Solver to find the present value of an ordinary annuity where the payments are $4210…

A: Present value is a financial concept that represents the value of a future sum of money in terms of…

Q: If money can earn 5.1% compounded monthly, how much more money is required to fund an ordinary…

A: The objective of the question is to find out the difference in the amount of money required to fund…

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

A: Annuity means a set of finite number of payments which are made in equal time intervals and same in…

Q: What is the future value of an 8%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: Interest rate (r) = 8% Annual payment (P) = $ 350 Number of annual payments (n) = 5

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: PMT = 58 Period = 13 years  Nominal rate of interest = 7.23% Additional amount = 1000

Q: Someone needs to make the following annuity payments to an individual: £445 paid at the end of each…

A: The PV of an investment refers to the combined value of the cash flows of the investment assuming…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.