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 buyer of a lot paid P110,000 down payment and agreed to pay P35 000 at the end of each six…

A: The cash price can be found by adding up the downpayment and present value of the annuity. The…

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: 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: D Question 3 Which one of the following statements is correct? O All secondary markets are broker…

A: Market refers to a place that is used by public companies for trading stocks or floats for the…

Q: DEFERRED ANNUITY: (please don’t use excel) Find the present value of a deferred ammity of P760 every…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: A perpetuity is to pay $21,000 at the end of every six months. How much less money is required to…

A: Solution:- Perpetuity means the payment made forever. Value of perpetuity = Periodic Payments /…

Q: For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years.…

A: The annuity is the periodic payment received in each period. The present value is the discounted…

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: 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: 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: 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: 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: epay a loan over five years with the following stream of cash payments: $1,000; $1,100; $1,250;…

A: Annuity is one uniform constant payments to be received or to be paid over the period of payments,

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: t amount must be deposited in etuity today earning 8% compo ally if the first monthly paymer ade 6…

A: Perpetuity annuity means that it will continue forever. Annuity due means payments are at the…

Q: A sum of $ 10, 000 is used to buy a deferred perpetuity-due paying $671.69 every six months forever.…

A: The present value of a perpetual annuity is the present worth of a cash flow that will continue till…

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…

Q: to withdraw from the account each month. Find the number of withdrawals under each of the following…

A: Ordinary Annuity: It represents a series of annuity payments made at the end of each period.…

Q: RED ANNUITY: (please don’t use excel) In a series of quarterly payments of P960 each, the first…

A: Present value of annuities is equivalent amount today considering the period and interest rate…

Q: B. Solve for the following: 13. An annuity contract pays P35,000 quarterly for 16 years. What is the…

A: Note: Since here two questions have been asked, but we are allowed to answer only one question at a…

Q: please provide ball plus solution function

A: An annuity is an agreement that pays a fixed periodic amount for a predetermined time. It is largely…

Q: Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,706 is deposited…

A: Monthly deposit (C) = $1,706 Monthly interest rate (r) = 0.00425 (i.e. 0.051 / 12) Monthly period…

Q: Mike Carlson will receive $35,000 a year from the end of the third year to the end of the 17th year…

A: Present value (PV) is the current value of a future sum of money or  of cash flows given at…

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.