Please assume an annuity due of $100,000 a year for 10 years. Assuming a discount rate of 6%, please find the present value of that annuity due
Q: Find the payment that should be used for the annuity due whose future value is given. Assume that…
A: Given, The future value of annuity due is $15,000 Quarterly payments are made for 12 years Interest…
Q: Use the simple interest formula message to find the future value of an ordinary annuity of $3300…
A: An annuity is a payment series that provides the holder with future cash flows in exchange for a…
Q: Determine the present value of a $3,500 perpetuity if the interest rate is 7%. If interest rates…
A: Given: Amount = $3,500 Interest rate = 7%
Q: Find the future value of a 10-year annuity due with payments of $2,250 and an annually compounded…
A: The amount that a present investment will gain in value over time when kept in a compound interest…
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: Find the future value of a 6-year annuity due with payments of $1,400 and an annually compounded…
A: The future value represents the value of an investment in the future after considering the effect of…
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: You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…
A:
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: Find the future value of the following ordinary annuities. Payments are made and interest is…
A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…
Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…
A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…
Q: Find the present value of an annuity stream in which the first payment of $268 is received 8 years…
A: Payment = p $268Time = t = 8 Number of Payment = n = 8Growth Rate = g = -4.5%Discount Rate = r =…
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: A 5-year $100 ordinary annuity has an annual interest rate of 10%. What is its present value?
A: Present value of annuity is the equivalent value of all the cash flows which will be incurred at…
Q: You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective…
A: Present value of annuity = $10000 Interest rate (r) = 4% Annuity amount (A) = $500 Additional amount…
Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…
A: Required :The discounted value of these cash flows.
Q: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4 % interest for 10…
A: An annuity is a kind of deposit payment that an individual makes into an investment account or a…
Q: You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement.…
A: Given, The cashflows is $90,000 The rate of interest is 8%
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: t accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: Find the future value of the following ordinary annuities. Payments are made and interest is…
A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…
Q: Find the following values assuming a regular, or ordinary, annuity: a. The present value of $400…
A: The objective of the question is to calculate the present and future values of ordinary annuities…
Q: Find the present value of an ordinary annuity with payments of $90,000.00 paid annually for 25 years…
A: Future value is a financial concept that predicts the worth of an investment or sum of money at a…
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: Find the future value of an annuity of $1500 paid at the end of each year for 15 years, if interest…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, P = Annuity amount i.e. 1500 r = rate of…
Q: What is the present value of a 15 year annuity with the first payment of $45,000 (all payments are…
A: The present value of an ordinary annuity(payment due at end) can be calculated by using this…
Q: a) You deposit $200 monthly into an annuity with the goal of accumulating $180,000 after 30 years.…
A: The annual rate is the growth rate linked to an investment, loan, or savings. It captures the…
Q: What is the present value of a 10-year annuity of $5,250 per period in which payments come at the…
A: The annuity wherein the payment is done at the start of every period is called an annuity due. The…
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective interest rate i = .04. The annuity pays $500 at the end of each year and an additional $X at the beginning of years 6 through 12. Find X.Find the NPV and PI of an annuity that pays $500 per year for eight years and costs $2,500. Assume a discount rate of 6%. Show the calculations.
- Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if interest is earned at a rate of 5%, compounded annual. What is the future value?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.Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the present at an annual rate of 12 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 15 percent?
- Calculate the present value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10%.Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $168, 000; monthly payments for 5 years; interest rate 3% .You have been offered a 7-year annunity of $2,000 beginning four years from now. If the discount rate is 8%, what is the value of the annuity today
- Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=16,000; 4.3% interest compounded quarterly for 11 years. The future value of the ordinary annuity is $__ (Round to the nearest cent as needed.) The amount from contributions is $__ and the amount from interest is $__. (Round to the nearest cent as needed.)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%.