periodic payment $260 made at end, payment period 1month, period of deferment 7years,terms 3years, interest rate 9%, conversion period quarterly. find the present value of the ordinary deferred annuity round the final answer to the nearest cents

periodic payment $260 made at end, payment period 1month, period of deferment 7years,terms 3years, interest rate 9%, conversion period quarterly. find the present value of the ordinary deferred annuity round the final answer to the nearest cents

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Find the present value of the ordinary annuity: Payments of $450 made annually for 13 years at 6%…

A: Option d: This option is correct. Step 1:We have to calculate the present value of the ordinary…

Q: For the following annuity due, determine the nominal annual rate of interest. Future Value Present…

A: We need to use RATE function in Excel to calculate interest on annuity. The equation is:…

Q: For the following ordinary annuity, determine the size of the periodic payment. Future Payment…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: Periodic deposit-$? at the end of the year Rate-5% compounded annually Time-19 years Financial…

A: Financial goal The goals that an individual or business sets when dealing with money are called…

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value…

A: Present value of annuity = $20000 Quarterly rent (Q) = $900 r = 4.7% per annum = 1.175% per quarter…

Q: FV of $800 each 6 months for 9 years at a nominal rate of 12%, compounded semiannually. Do not round…

A: Future value (FV): Future value is the value of an asset at a future point in time which is…

Q: Find the periodic payment for the following annuity due. Future Value Present Value $12,600 Payment…

A: Present value (PV) = $12,600 Monthly period (p) = 84 (i.e. 7 years * 12) Semiannual interest rate =…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Amount of deposit = 250Interest rate= 3%Time =20 yearsTo find: The value of the annuity at the end…

Q: FV of $800 each 6 months for 8 years at a nominal rate of 16%, compounded semiannually. Do not round…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: $4,000 every year 20 4

A: Present value of annuity is equivalent value today of the future payments to be received in the…

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

A: Present value of the ordinary annuity can be calculated by annuity amount multiply with Present…

Q: Jompound amount for the deposit. Round to the nearest cent. 5) $18,000 at 7% compounded semiannually…

A: Future value is what a sum of money invested today will become over time, at a rate of interest.…

Q: Periodic Payment $250.00 Payment Interval 1 year Term 4 years Interest Rate . 10% Conversion Period…

A: Ordinary annuity is constant uniform payments that are paid at the end of period and present value…

Q: For the following annuity due, determine the nominal annual rate of interest. Payment Term Period 3…

A: An annuity refers to a stream of periodic payments made in exchange for a lump sum payment. It is…

Q: nnuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present…

A: The present value of an annuity is the current value of a stream of future payments, discounted to…

Q: esent value (in $) of an annuity due Annuity Payment Payment Fr

A: An annuity is used in case of a future annuity – suppose an equal sum of money is invested in the…

Q: Find the payment necessary to amortize the following loan. $7500; 8.8% compounded semiannually; 18…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Find the future values of the following ordinary annuities: a. FV of $500 paid each 6 months for 5…

A: Summary:Future Value of Annuity (a): $6,488.20Future Value of Annuity (b): $6,767.73Reason for…

Q: Find the present value of the following ordinary simple annuity. Payment Interval 3 months Periodic…

A: The PV of an investment refers to the combined value of the cash flows of the investment assuming…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Annuity refers to the amount that is received periodically based on the sum deposited. The deposited…

Q: Find the future values of the following ordinary annuities. FV of $600 each 6 months for 5 years at…

A: Given information: Annuity amount is $600, $300 Number of years is 5 Interest rate is 16%

Q: ind the future values of the following ordinary annuities.

A: Future Value of Ordinary Annuity: It refers to the future worth of the annuity cash flows made at…

Q: Present value (in $) of an annuity due Annuity Payment Payment Frequency Time Period (years)…

A: The Present value of annuity due is calculated using the Present Value of Annuity due formula.

Q: Determine the nominal annual rate of interest of the following ordinary general annuity. Conversion…

A: The annual rate of interest refers to the interest rate thang charged by the lender from the…

Q: Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round to the…

A: Ordinary annuity is the type of account in which amount is accumulated at the end of each period for…

Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

100%

periodic payment $260
made at end, payment period 1month,
period of deferment 7years,terms
3years,interest rate 9%, conversion period
quarterly. find
the present value of the ordinary deferred
annuity round the final answer to the nearest
cents

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Formula

VIEW

Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Find the value of the annuity at the end of the indicated number of years. ASsume that the interest is compounded with the same frequency as the deposits. (Round your answer to the nearest cent.) $4 Amount of Deposie Frequency Rate Time m n $1,250 quarterly 7% 15 yr Need Help? Read It
Future Value of an Annuity for Various Compounding Periods Find the future values of the following ordinary annuities. FV of $200 each 6 months for 10 years at a nominal rate of 12%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ FV of $100 each 3 months for 10 years at a nominal rate of 12%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $
Find the future value of the following annuity due. Payments of $600 for 9 years at 5% compounded semiannually S&S (Round to the nearest cent as needed.)
Find the future values of the following ordinary annuities: a. FV of $500 paid each 6 months for 5 years at a nominal rate of 6% compounded semiannually. Do not round Intermediate calculations. Round your answer to the nearest cent. $ b. FV of $250 paid each 3 months for 5 years at a nominal rate of 6% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? -Select-
Find the future value for the ordinary annuity with the given payment and interest rate PMT=$700; 1.45% compounded semiannually for 4 years
K Find the present value of the following perpetuity. Made At: end Perpetuity Payment $190 Payment Period 1 month Interest Rate 7.8% Conversion Period annually ETT The present value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)
Periodic Payment Find the present value of the following ordinary simple annuity. Payment Interval Conversion Term $75 1 month 19 years, 7 months Interest Rate 7.5% Period monthly
vd subject-Accounting
Find the compound amount for the following deposit. $18,000 at 6% compounded semi-annually for 7 years. The compound amount after 7 years will be $ (Round to the nearest cent.)
Assuming a 360-day year, when a $11,200, 90-day, 5% interest-bearing note payable matures, the total payment will be Oa. $560 Ob. $140 Oc. $11,760 Od. $11,340 0 0 0 0
Coice 52,26,39 ,78
Determine the nominal annual rate of interest of the following ordinary general annuity. Periodic Term Conversion Period Payment $81 semi-annually Present Value $1700 Payment Interval 3 months SCCCS The nominal annual rate of interest is (Round to two decimal places as needed.) 7 years % compounded semi-annually.