Q: An annuity pays an amount of $86.00 each period for 9 periods, and the present value is $666.00.…
A: An annuity is a series of payments made at equal intervals. Examples of annuities are regular…
Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…
A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…
Q: What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate…
A: Given details are : Annual payment = $3800 Interest rate = 5% = 0.05 From these details we need to…
Q: future value
A: Future value is the value of money or asset in the future. It is very important to investors and…
Q: What is the difference in present value between a perpetuity that pays $500 per year and an ordinary…
A: Annual payment (A) = $500 n = 23 years for ordinary annuity r = 7%
Q: What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is…
A: Perpetuity is a type of annuity which has no maturity. Given data; payment = $ 250 interest rate =…
Q: The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at…
A: Perpetuity is a situation where a stream of Cashflow payments continues indefinitely or is an…
Q: A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is…
A: Computation of perpetuity at t=4:
Q: What is the future value (in $) of an annuity of $4,634 for 15 years if the discount rate is 5.79…
A: Future value refers to the compounded value of the future cash flows for the given period of time…
Q: If the present value of an ordinary, 6- year annuity is $7,200 and inter present value of the same…
A: In ordinary annuity there are payments at the end of period only and in annuity due payments are at…
Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…
A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…
Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…
A: present value of a perpetuity = Annual payment/Discount rate
Q: What is the present value of a four-period annuity of $200 per year that begins two years from today…
A: Annual annuity amount = $200 Time Period = 4 years Discount Rate = 9%
Q: What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?
A: Given: Rate: 7% Annuity =300 Number of years = 5
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: What is the future value (FV) of this perpetuity, given that the interest rate is 3%?
A: The future value of an investment forecasts the expected value of an investment at a given future…
Q: What is the price of a perpetuity that pays $17.50 semi-annually and the required rate of return is…
A: In this question we need to compute the price of perpetuity that pays $17.50 semi-annually.
Q: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: What is the price of a perpetuity that pays $50 annually and the required rate of return is 6%?
A: In this question we need to compute the price of a perpetuity.
Q: Find the present value of a 5-year annuity due if the annual payments are $600 and the interest rate…
A: Annuity due-Payments are made at the beginning of each period.Ordinary annuity- Payments are made at…
Q: What is the present value of a perpetuity with payments starting one year from now. The first…
A: Present value of perpetuity can be calculated by formula that cash flow of first year divided by…
Q: What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be…
A: As a fist step, let's shifts ourselves to the end of t = 10 years.Annuity, A = $ 2,500; n = number…
Q: What’s the present valu
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
Q: what;s the present value of perpetuity that pays % 1, 563 per year if the appropriate interest rate…
A: The objective of this question is to calculate the present value of a perpetuity. A perpetuity is an…
Q: A perpetuity will pay $800 per year, starting five years after the perpetuity is purchased. What…
A: Perpetuity refers to equalized stream of payments that are either paid or received for indefinite…
Q: What is the present value of the following annuity: $ 2,500 a year for 10 years discounted back to…
A: The present value of an annuity is the current value of future payments given a specified rate of…
Q: An annuity pays $54 per year for 28 years. What is the future value (FV) of this annuity at the end…
A: Future value of annuity = A x [(1+i)^t - 1] / iwhereA = Periodic cash flow = $54 per yeari = perodic…
Q: What is the present value of an ordinary annuity of $400 each month for eight years, assuming an…
A: Present Value Present value is the present worth of any sum of a money to be received in the future…
Q: A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is…
A: The question is based on the concept of perpetuity payment and concept of time value of money.Future…
Q: What is the present value of the annuity?
A: We can determine the PV using PV of annuity due formula as below:In the formula below:PMT = annual…
Q: You are comparing two annuities with equal present values. The applicable discount rate is 7.25%.…
A: Discount rate = r = 7.25%Time = t = 15 YearsValue of Annuity A = aa = $2500Annuity A Type = at the…
Q: What is the present value of a perpetuity with payments starting one year from now. The first…
A: A perpetuity is a type of security that pays a constant stream of fixed cash flows for an infinite…
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- What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate is 5%?What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to the present at 11 percent?
- What is the future value (in $) of an annuity of $4,634 for 15 years if the discount rate is 5.79 percent? Answer to two decimals.What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment? Use a nominal rate of 7.23%.The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at the end of every other year, starting at year 2 (that is, payments happen at year 2, 4, 6, ...)?
- Find the present value of a 5-year annuity due if the annual payments are $600 and the interest rate is 11%. What is the difference between the present value of the annuity and the present value of the ordinary 5-year annuity?What is the present value of a perpetuity with payments starting one year from now. The first payment is $25,000. Assume a discount rate of 8%.What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?
- You are comparing two annuities with equal present values. The applicable discount rate is 7.25%. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year?An annuity pays $55 per year for 21 years. What is the future value (FV) of this annuity at the end of those 21 years, given that the discount rate is 6%? A. $2,199.60 O B. $3,079.44 O C. $1,319.76 O D. $2,639.52What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays $500 per year for 23 years? Assume a discount rate of 7% and cash flows at the end of the period. Enter your answer as a number rounded to 2 decimal places.