Mr Jones is to receive a deferred annuity of £2500 which starts at the end of the third year from now and continues for a period of 12 years from its start. Calculate the present value of this deferred annuity on the basis of a discount rate of 7% per annum. Show all your working.

Q: What is the present value of  Nagpada's ordinary annuity of 10-years whose cash flows are $1,500 per…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: At the end of each month for the next ten years you will receive cash flows of $75.  If the…

A: Present value of annuity = 75{1-(1+0.072)^-120}/0.072

Q: e). In which account will he have more money and by how much?

A: Regular annuity: Number of periods = 32 * 4 = 128 Quarterly rate = 7.3% / 4 = 1.825% Future value =…

Q: James plans to receive a monthly annuity of $1514 for the next 28 years as part of his inheritance.…

A: Here,Monthly Annuity (PMT) is $1514Time Period (n) is 28 yearsInterest Rate (r)  is 9.27%Compounding…

Q: 9. Daniel Plans to fund his individual retirement account, beginning at the end of each year with 20…

A: The future value is the future worth of the amount that will be paid or received at future.

Q: Matt will receive an annuity of $11,850.75 a year for nine years. The first payment is to be…

A: Here, Particulars Values Annual receipts (PMT)  $ 11,850.75 Time period (NPER) 9.00…

Q: Hamad will receive the following payments at the end of the next three years: AED 40,000, AED…

A: Given: Year 1 cash flows = AED 40,000 Year 2 cash flows = AED 50,000 Year 3 cash flows = AED 65,000…

Q: A man is planning to retire in 25 years. He wishes to deposit a regular amountevery three months…

A: Excel Spreadsheet: Excel Workings:

Q: Calculate the present value of the following annuity streams: $5,000 received each year for 5 years…

A: Answer 1. PMT = $5000 N = 5 I/Y = 6% FV = 0 CPT PV = $21,061.8

Q: Geoff has paid $16,000 for a retirement annuity from which he will receive $1,582 at the end of…

A: Time, the value of money defines the money received today is more valuable than the money will…

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: An insurance settlement of $2.5 million must replace Trixie Eden's income for the next 25 years.…

A: We use PMT function to calculate monthly income

Q: Todd Ring plans to deposit $600 at the end of every 6 months for the next 10 years at 12% interest…

A: The future value of the annuity is calculated when it is to be known how much amount one will…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: In this question we need to compute the present value of the following annuity streams.

Q: Jaime Bickers invests $4000 at the end of each semiannual period for 8 years. His financial advisor…

A: Calculate the future value as follows:

Q: Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the…

A: Using excel PV function

Q: An executive prepares for retirement by depositing $2500 into an annuity each year for 10 years. The…

A: Future value of a present value is the value of that amount after taking into account the time value…

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: At the end of each month for the next ten years you will receive cash flows of $50.  If the…

A: Annuity refers to the contract between an insurer and the insurance company in which a fixed…

Q: An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year.…

A: Given,  Payment made is $8 starting from the end of year 12th. Since payment is starting from the…

Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In this we need to calculate monthly payment required for one million future value.

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: An insurer needs to make the following annuity payments into a private pension fund: £771 paid at…

A: Here,Periodic payment for first 5 years is £771Periodic payment for next 8 years is £1,097Periodic…

Q: You are given an annuity-immediate paying 14 for 14 years, then increasing by one per year for 8…

A: An annuity's present value is the current value of all of its future cash flows discounted, using a…

Q: Leanne Simon made ordinary annuity payments of $100.00 per month for 15 years earning 4.5%…

A: The future value of the regular payment made at the end of every period is called the future value…