In five years, P 20,000 will be bedded to pay for a building renovation. In order to generate this sum, an annuity consisting of three annual payments is established now. What payment is necessary if money is worth 15% annually?

Q: A property will provide $24,400 at the end of each year forever. If its value is $245,000, what must…

A: Annual Cash Flow = $24,400Perpetuity Value (Property Value) = $245,000

Q: A loan of $50,000 is due 10 years from today. The borrower wants to make monthly payments at the end…

A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: A house costs $141,000. It is to be paid off in exactly ten​ years, with monthly payments of…

A: An amount of annual percentage which is charged from borrowers of the loan and paid to the…

Q: Suppose you inherit a perpetuity that pays $4,000 each year. Assuming the first payment will occur…

A: The given rate is APR rate i.e. annual percentage rate. The APR is with daily compounding. The EAR…

Q: A perpetuity with a present value of $25,000 today yields cash flows of $100 per month. The first…

A: Perpetuity involves receiving cash flow for an infinite period of time. Perpetuity calculation can…

Q: A continuous annuity of $12,000 per year is to be funded by steady withdrawals from a savings…

A: Annuity Amount = 12,000 per year Interest Rate = 6% Continuous Compounding

Q: If a donation of $100,000 is expected to pay out scholarships of $10,000 every year and the funds…

A: Here, to calculate time period we have to use the compound interest formula .   A = P 1+r100n…

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: Assume that you want to have $ 2900 saved in a sinking fund in 1 year. The account pays 5%…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: The monthly compounded interest rate is 10%. What is the effective annual interest rate and what is…

A: Compound = n = Quarterly = 4Interest rate = r = 10%Cash Flow = cf = $100Time = t = 3 Years

Q: A 20-year annuity pays $1,500 monthly, and payments are made at the end of each month. If the…

A: Monthly payments = $1500Period = 20 yearsInterest rate :First 10 years = 6.25%Next 10 years = 5.50%

Q: How much money do you need now to set up a perpetuity that pays $2,000 at the end of each quarter if…

A: In finance, there are two types of series of cash flows, i.e., an annuity, and perpetuity. An…

Q: A perpetuity with a present value of $60,000 today yields cash flows of $1,200 per quarter. The…

A: Solution: An equal amount received for a perpetual period, is called perpetuity.  So, present value…

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4+1/2 years. If…

A: Final amount = $50,000Time = 4.5 years Rate = 6.23% compounded semi-annually

Q: An annuity provides for 12 annual payments. The first payment is $100, paid at the end of the first…

A: The above example is the type of growing annuity. We need to find out the present value of this…

Q: 15-year annuity of thirty $10,000 semiannual payments will begin 11 years from now, with the first…

A: The annuity is series of the uniform periodic payments at regular intervals and the present value of…

Q: A fund is to be created which pays out a scholarship of £7,000 every year in perpetuity. The first…

A: Perpetuity are funds that are paid over the whole life period of annuities. Value of perpetuity is…

Q: A house costs $139,000. It is to be paid off in exactly ten years, with monthly payments of…

A: House cost = $139,000Monthly payment = $1,599.62Number of years = 10 years

Q: what is the value of this annuity five years from now? What is the value three years from now? What…

A: An annuity is a series of payments which starts from 1st period and can end at any period, annuity…

Q: Leberland Corporation deposits $100,000 every year in a savings account (beginning at the end of the…

A: The objective of this question is to calculate the future value of an ordinary annuity. An ordinary…

Q: A five-year annuity of 10 $7,500 semiannual payments will begin 10 years from now, with the first…

A: To calculate the value of the annuity at different time points, we can use the present value formula…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.