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: Show Solution. Topic: Simple Differed Annuity  Find the present value of a deferred annuity of…

A: Present value of Annuity: How much cash would be required today to cover a series of future annuity…

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: How much more money is required to fund an ordinary perpetuity than a 25-year ordinary annuity if…

A: Effective Annual rate: It is  the interest rate on loan/investment  restated from the nominal…

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 future value for the ordinary annuity with the given payment and interest rate. PMT =…

A: PMT = $2000 r = 1.1% per annum = 0.09167% per month n = 6 years = 72 months

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: For given information answer the Questions no (3) and (4) for a 10,000 per month annuity that has a…

A: FV=P1+in-1iFV=Future valueP=Periodic paymenti=rate of returnn=number of period

Q: Complete the following for the present value of an ordinary annuity. (Do not round intermediate…

A: Compound = quarterly = 4 Annuity = a = $15,400 Time = t = 5 * 4 = 20 Interest rate = r = 10 / 4 =…

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: purchased for $185,000 pays $5,000 at the end of every quarter. How long will the payments continue…

A: Present value of annuity is amount of equivalent value today that will equivalent to future value of…

Q: An annuity with a cash value of $11,300 pays $950 at the beginning of every three months. The…

A: Given: Particulars Amount Cash value(PV) $11,300 Payment (PMT) $950 Interest rate 6%

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: if P20,879 is deposited each year for 8 years at an interest rate of 10.257% compounded bi-monthly,…

A: The concept of the time value of money states that the same amount of money is worth more today than…

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: What is the future value of a 12%, 5-year ordinary annuity that pays $600 each year? Do not round…

A: Ordinary annuity is when the payments start at time 1, Annuity due is when the payments start at…

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: You want to withdraw $ 21,769 from your account at the end of one year and $ 34,587 at the end of…

A: As per the given information: Withdrawals at the end of the one year - $21,769 Withdrawals at the…

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

A: The given details are:Weekly annuity: $300Period (years): 7.5Annual interest rate: 3.5%Compounding:…

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…

Q: Sargassum Caribbean Incorporated Balance Sheet as at December 31, 2020 Assets Liabilities Current…

A: we will only answe the first three subparts, for the remaining subparts, kindly resubmit the…

Q: : On January 1, 1999, Bitf purchases an annuity for 50600 dollars. The annuity makes annual payments…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: In a series of semiannual payments of P2,500 each the first payment is due at the end of 4 years and…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

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.