Present value of an annuity) Determine the present value of an ordinary annuity of $2,000 per year for 16 years, assuming it earns 15 percent. Assume that the first cash flow from the annuity comes at the end of year 7 and the final payment at the end of year 22. That is, no payments are made on the annuity at the end of years 1 through 6. Instead, annual payments are made at the end of years 7 through 22. The present value of the annuity at the end of year 6 is $(Round to the nearest cent.)

Q: you have a 12-year annuity paying $496 quarterly in 10 years when interest is 6.65% compounded…

A: Number of annuity payments = Number of years * time period of Payment = Number of years * Quaterly…

Q: If $417.00 is deposited at the end of each year for 6 years into an ordinary annuity earning 4.08%…

A: Here, Yearly Deposit is $417.00 Time Period is 6 years Interest Rate is 4.08% Compounding Period is…

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A: Time period = 20 years  Nominal annual interest rate = 6% Increase in the amount on yearly basis =…

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A: An annuity is a payment series where a periodic sum is paid in exchange for a lump sum payment. It…

Q: The compounding periods and the payment periods are the same for an annuity and for an amortization.…

A: Present value of annuity:The present value of an annuity refers to the current worth of a series of…

Q: An annuity makes semi-annual payments for 10 years. The first year the payments are 100 and each…

A: Solution- Step (1) Given that Amount of first payment =100 Numbers of year =10 Number of semi-annual…

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

A: Future value of the ordinary annuity (FV). FV= [P*(1+r/n)^nt -1] / (r/n)

Q: Future Value Calculation: step-by-step calculation You deposit $500 at the beginning of each year…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Calculate the future value of an ordinary annuity where $125 is deposited and compounded monthly at…

A: The future value of an ordinary annuity is given by the formula where Py is the annuity payment, i…

Q: 9. A perpetuity due pays 600 in the first year, and in each subsequent year, the payment is 1%…

A: Given: PV = P + (1.01P)/(1 + i) + (1.02P)/(1 + i)^2 + (1.03P)/(1 + i)^3 + ...PV = 152,100 then use…

Q: An annuity pays quarterly for 16 years at the beginning of each quarter. Payments during the first…

A: Variables in the question:Payments during 1st year=250  per quarterPayments during Year 2=105 per…

Q: future value

A: Future value is the value of money or asset in the future. It is very important to investors and…

Q: n annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate…

A: Present value of annuity can calculated by using Excel PV function.

Q: How long is the period of deferral (d) if the first quarterly payment of a deferred ordinary annuity…

A: Deferral Annuity is one of the type of annuity in which borrower has the option to start the annuity…

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A: The duration of a perpetuity is simply equal to the weighted average time to receive the cash flows,…

Q: An annuity-pays 18,000 per year for five years. The annual interest rate is 6%. Find the present…

A: i) Determine the present value of the annuity using the Excel PV function with the following inputs:…

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Q: Use the ordinary annuity formula shown to the right to determine the accumulated amount in the…

A: The annuity is a cash flow series wherein an equal cash flow is paid/received each period.

Q: Use the ordinary annuity formula shown to the right to determine the accumulated amount in the…

A: Principal amount = $60  Time period = 10 years  Interest rate = 5% Compounded = semi-annually

Q: 11. In the following ordinary annuity, the interest is compounded with each payment, and the payment…

A: 11. where : FV = Accumulated Amount of the annuity PMT =Payment per period =  $5500 i = interest…

Q: What is the value today of a 15-year annuity that pays $710 a year? The annuity's first payment…

A: Period of the annuity = 15 yearsYearly payment = $710It is given that the annuity's first payment…

Q: An annual annuity-immediate pays $2000 at the end of the first year. The last payment is at the end…

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

Q: The first payment of the perpetuity is K and each subsequent payment is 0.5% larger than the…

A: We first need to compute the PV of the remaining payments (9 payments) using the PV of ordinary…

Q: 2. An annuity pays 200 at the end of each month for 10 years. Using an annual effective interest…

A: Present value:The present value is a financial term that shows the current value of a future…

Q: Ques 17 and 18

A: Lisa's annual deposit must be approximately $245.50.Explanation:Step 1: Understand the ProblemFuture…

Q: Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity).…

A: The annuity refers to the series of cash flows that last for a limited period of time. The future…

Q: The compounding periods and the payment periods are the same for an annuity and for an amortization.…

A:

Q: A 5-year annuity has a series of payments 1, 2, 3, 2, 1 with the first payment made at time t = 0…

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

Q: What is the future value of a 15-year annuity of $1,700 per period where payments come at the…

A: The annuity refers to the series of cash flows that last for a limited period of time. The future…

Q: Annuity X pays $1,200 at each year-end for 15 years. Annuity Y pays $1,100 at the beginning of each…

A: Annual Rate = r = 8%Annuity XPayment = px = $1200Time = tx = 15 YearsPayment Type = At the end of…

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: Annuity payments are assumed to come at the end of each payment period (termed an ordinary annulty).…

A:

Q: Determine the present value of an ordinary annuity of P1,000 per year for 10 years with the first…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Assume that an annuity has an annual cash flow of $375 in Years 11 through: Also assume that the…

A: Value of annuity is the present value of cash flow from the annuity based on the time and interest…

Q: A 10-year annuity pays $1,850 per month, and payments are made at the end of each month. If the APR…

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Q: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

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Q: nnuity payments are assumed to come at the end of each payment period (termed an ordinary annuity).…

A: The annuity refers to the series of cash flows that last for a limited period of time. The future…