Interest rate with annuity.   What are you getting in terms of interest rate if you are willing to pay ​$10,000 today for an annual stream of payments of ​$2,100 for the next 25 ​years? The next 50 ​years? The next 125 ​years? ​

Q: valued at $15000. What is

A: To find the annual interest rate for the annuity, we can use the present value formula for an…

Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…

A: Present value of annuity payment - it means present value of future annual equal payment made to a…

Q: If you have an annuity with a 5.5% compounded interest rate monthly and 2,000 is invested at the end…

A: The future value of annuity refers to the total value of a series of equal cash flows received or…

Q: 1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what…

A: 1. Investment= $10000 time= 4 years

Q: a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10…

A: Given: Annual cash flow (A)=$1000 Number of years (n) =9 years Interest rate(r) = 10% = 0.10

Q: An annuity pays out $20000 per year. Because of inflation, each year one dollar is worth what 0.95…

A: Annuity per year = $20,000Because of inflation, each year 1 dollar is worth what $0.95 was worth of…

Q: How much would you be willing to pay today for an ordinary annuity that makes equal annual payments…

A: An ordinary annuity is the series of an equal payment that is paid or received at each week, month,…

Q: You invest in an ordinary annuity $3,000 annually at 7% annual interest. What is the future value of…

A: Given:  Amount = 3000 r = 7% n = 5 years

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: What is the future value of a $1000 annuity due over 12 years at an interest rate of 12%? (TVM)

A: Future value of annuity due = Annuity amount * FVAD of $1

Q: What is the future value of a 12%, 10 year annuity due that pays 1,000 each year.

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

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

Q: Future value of an annuity: How much money would an investor have if they invested the $5,500 per…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: Calculating Annuity Payments You want to be a millionaire when you retire in 40 years. How much do…

A: Retirement period = 40 yearsInterest rate = 10.2%Amount = $1,000,000

Q: the current value of the annuity? LO 1 49. Present Value and Multiple Cash Flows. What is the…

A: The time value of money states that the value of the money decrease over time. The value of money is…

Q: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: Using The Future value function in excel

Q: You buy an annuity that will pay you $24,000 a year for 25 years.  What is the value of this annuity…

A: Present value of annuity = Annuity amount * PVA of $1

Q: Future and present value of an annuity Find the future and present value of a 20-year ordinary…

A: Fixed Annuity: In a fixed annuity, the payments are predetermined and remain constant throughout the…

Q: An annuity pays $13 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: The future value is the value of the annuity payments at the end of the annuity term.

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: What is the future value of an annuity due if your required return is 10%, and annual payments are…

A: The time value of money is a core principle in finance, asserting that a given amount of money today…

Q: Interest rate with annuity. What are you getting in terms of interest rate if you are willing to pay…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: You buy an ordinary annuity today for $120,583, which promises to pay you $11,256 per year. If the…

A: An annuity refers to a series of cash flows that occurs on a periodic basis. The cash flow series…

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…

A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5

Q: What is the future value of an annuity with annual cashflows of $4,000 for 38 years? The interest…

A: Future value of an annuity is the future value of stream of same annual cash flows which takes place…

Q: If you are expecting a settlement of $10000 at the end of each year for five years, how much this…

A: The question is based on the concept of calculation of present value of future annuity payment.…

Q: If you put up $73,000 today in exchange for an annual 6.75 percent, 18-year annuity, what will the…

A: The annual cash flow can be computed with the help of present value of annuity.

Q: You purchased an annuity that will make payments of $31,000 every 5 years for the next 10 years. If…

A: We need to use present value formula below to calculate annuity worth today.Annuity worth today =…

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.