If the present value of an ordinary, 6-year annuity is $8,500 and interest rates are 9.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value $

Q: What is the present value of a 6-year annuity of $2,250 per period in which payments come at the…

A: Present value refers to the current value of a future sum of money or cash flow, discounted at an…

Q: What is the PV of a 8-year annuity due (payments at beginning of period

A: PV = PMT * ((1 - (1 + r)^(-n)) / (r * (1 + r)))Where:PV is the present valuePMT is the payment…

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: What’s the interest rate of a 7-year, annual $3,900 annuity with a present value of $20,000? (Use a…

A: Calculate the interest rate as follows:MS-Excel --> Formulas --> Financials --> Rate

Q: What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent?…

A: The present value of annuity is calculated by present value of all future payments from an annuity…

Q: What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The…

A: Annuity = a = $4600Time = t = 4 YearsInterest Rate = r = 7%

Q: y is $5759.93. What annual nominal compounding rate has this annuity earned?

A: As per the given information: Annual payments into an ordinary annuity - $1,000 Amount of annuity at…

Q: Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate is…

A: In an ordinary annuity, the cash flow occurs at the end of each period.Present value of ordinary…

Q: If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent,…

A: Given: Particulars Amount Present value(PV) $6,500 Rate 8% Years(NPER) 7

Q: Suppose you are going to receive $12,700 per year for six years. The appropriate interest rate is…

A: Using excel PV and FV for calculating present value of annuity and future value of annuity

Q: Find the present value of an ordinary annuity with deposits of $11,055 semiannually for 10 years at…

A: An annuity's present value is the current value, discounted at a certain rate, of a series of future…

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: What is the future value of a $900 annuity payment over five years if interest rates are 8 percent?…

A: The accumulated value can be calculated as future value of annuity

Q: What's the interest rate of a 5-year, annual $4,200 annuity with present value of $16,000? (Use a…

A: Solution:-When an equal amount is paid each period, it is known as annuity.We know, present value of…

Q: Find the future value of the ordinary annuity. Interest is compounded annually. R=8000; i=0.07; n=15…

A: Future value of ordinary annuity = P x [(1 + i)^n - 1]i   where, P = Annuity amount i = rate of…

Q: An annuity pays $12 per year for 47 years. What is the future value (FV) of this annuity at the end…

A: Annuity paid per year = $12Discount rate = 7%Number of years = 47 years

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: 6. Present Value of an Annuity The table below contains information on four different annuities. a)…

A: The present value of the annuity represents the current value of the future annuity stream of cash…

Q: How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments…

A: Given information: Annuity : $2,000 Number of payments : 30 Rate of interest : 10%

Q: What is the value today of a 15-year annuity that pays $710 a year? The annuity's first payment…

A: Period of the annuity = 15 yearsYearly payment = $710It is given that the annuity's first payment…

Q: An annuity pays $13 per year for 42 years. What is the future value (FV) of this annuity at the end…

A: In this question, we are required to determine the future value of annuity.

Q: 10) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV)…

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

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 3%…

A: Annuity amount, A = $1,000Number of compounding periods, n = 4*2=8Interest rate per period, r = 7%/2…

Q: What's the present value of a $900 annuity payment over five years if interest rates are 8 percent?…

A: Annuity = a = $900Time = t = 5 yearsInterest rate = r = 8%

Q: What is the future value of a 9%, 5-year ordinary annuity that pays $450 each year? Do not round…

A: The formula used to calculate future value of annuity is FV of ordinary annuity = Pmt*((1+r)n-1 )/r…

Q: What is the future value of a $200 annual payment over 10 years if interest rates are 6 percent…

A: The given details are:Required: Compute the future value & future value due.

Q: What is the value today of a 15-year annuity that pays $630 per year? The annuity's first payment…

A: An annuity refers to a series of periodic payments exchanged in place of a lump sum payment. It is…

Q: a. What is the present value of a 3-year annuity of $110 if the discount rate is 5%? (Do not round…

A: Annuity means a contract in which the financial institution pays an amount that gives the fixed…

Q: Suppose the interest rate is 6.9 APR with monthly compounding. What is the present value of an…

A: Given: Interest rate "APR" = 6.9% monthly compounding Annuity amount "PMT" = $110 Payments made…

Q: What are the annual cash flows (in $) of an annuity for 19 years, which costs $48,783 today, if the…

A: The sequence of periodic payments or receipts that are made as part of an annuity contract over time…

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: 9. Examine the time line for the annuity shown. 250 (1.015) 250 (1.015) 250 (1.015) 250 (1.015)23…

A: a) Duration of annuity = 6 years         In this question annuity for 24 periods of 3 months,…

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

A: An annuity refers to a series of periodic payments provided/received in exchange for a lump sum…

Q: (Present value of an annuity due) Determine the present value of an annuity due of $2,000 per year…

A: Present value of annuity due= Pmt*((1-(1+r)^-n)/r) *(1+r)

Q: If the present value of an ordinary, 8-year annuity is $6,100 and interest rates are 8.0 percent,…

A: Present value of ordinary annuity = $6,100 Interest rate = 0.08 Present value of annuity due = ?

Q: What's the future value

A: The future value is the estimated value of an investment that accounts for compound interest or…

Q: 1. Find the amount of an ordinary anhulty consisting of 24 monthly payments of $150 that earn…

A: We can define ordinary annuity as a type of annuity in which we receive or make the annuity payments…

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.