Present Value of an Annuity Estimate the present value of an annuity if payments are $1300 monthly for 15 years and the account earns interest at the rate of 10%/yr compounded continuously. (Round your answer to two decimal places.) $ 120687.43 X Need Help? Read It

Q: Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return…

A: Perpetuity is a financial term that refers to a stream of cash flows or a series of payments that…

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

A: Present value of annuity (PVA) is the stream of regular interval cashflow discounted at specified…

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic…

A: Monthly payment (M) = $80 r = 7% per annum = 7%/12 per month = 0.5833% per month n = 35 years = 420…

Q: An annuity will pay four annual payments of $100, with the first payment to be received three years…

A: Definition:

Q: What is the present value of a 8-year ordinary annuity with annual payments of $523, evaluated at a…

A: The PV of an annuity refers to the total value of its cash flows at present assuming they are…

Q: What's the interest rate of a 5-year, annual $5,300 annuity with present value of $21.500? (Use a…

A: A sequence of equal payments is known as an annuity. It is a type of financial product that offers a…

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

A: Amount of deposit(m): $800 Frequency(n): annually Rate(r): 1% Time(t): 30 years

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic…

A: Annuity is the series of equal cash payments over the period.

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic…

A: RATE (6%/12) 0.50% PERIOD  (15*12) 180 PMT (MONTHLY PAYMENT) 40 PRESENT VALUE $0 MONTHLY…

Q: What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The…

A: Annuity = a = $4600Time = t = 4 YearsInterest Rate = r = 7%

Q: Future value of an annuity Using the values below, answer the questions that follow. (Click on the…

A: Odinary annuity is where payment is due at end of period and annuity due is where payment is due at…

Q: What's the interest rate of a 5-year, annual $4,300 annuity with present value of $16,500? (Use a…

A: Here,AnnuityAmount is $4,300Present Value is $16,500Time Period is 5 years

Q: What's the interest rate of a 5-year, annual $4,200 annuity with present value of $16,000? (Use a…

A: Solution:-When an equal amount is paid each period, it is known as annuity.We know, present value of…

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

A: We use Pv function to calculate present value of annuity

Q: Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest…

A: Calculation of annual interest rate with an ordinary annuity: Excel workings:

Q: Calculate the future value. Present Value Interest Rate $0.00 8% monthly a. Determine the annuity…

A: Annuity refers to the series of payments being made at regular intervals. When the payments are made…

Q: Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Future…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: What is the future value of a $500 annuity payment over four years if interest rates are 8 percent?…

A: Calculate the future value as follows:

Q: Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the…

A: Annuity payment (P) = $ 40 Period = 1 1/2 = 1.50 Years Monthly periods (n) = 1.50*12 = 18 Annual…

Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…

A: A level or series of cash flows that occur at the end of each period for a fixed number of periods…

Q: Future and present value of an annuity Find the future and present value of a 20-year ordinary…

A: Fixed Annuity: In a fixed annuity, the payments are predetermined and remain constant throughout the…

Q: Suppose the interest rate is 6.9 APR with monthly compounding. What is the present value of an…

A: Given: Interest rate "APR" = 6.9% monthly compounding Annuity amount "PMT" = $110 Payments made…

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Rate Time…

A: Future value The value of a financial asset at some time in the future is known as the future value…

Q: Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: PMT = 58 Period = 13 years  Nominal rate of interest = 7.23% Additional amount = 1000

Q: Find the future value of the given annuity. (Round your answer to the nearest cent.) annuity due,…

A: The future value (FV) of the annuity is defined as the one value of future recurring payments at a…

Q: Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest…

A: Required:  Compute the annual interest rate in each case.

Q: Chris Seals has just given an insurance company $62,525. In return, she will receive an annuity of…

A: Investment amount (PV)=$62,525 Annuity amount (PMT)=$7,458 Time period (N)=12 years Future value=$0…

Q: Find the future value of an annuity due of $1,500 semiannually for six years at 7% annual interest…

A: FV  =  PV * [(1 + i)n - 1] / iFV  =  PV * FVIFA(i,n) where, FV  =  Future Value of AnnuityPV  =…

Q: If the present value of an ordinary, 6-year annuity is $6400 and interest rates are 2.5 percent,…

A: Given: Present value (PV)= $ 6400 Interest rate (r)= 2.5% Number of years (n) = 6

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

A: Given details: Amount of deposit(m)=$100 r=4% t=6years

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

A: The FV of an annuity refers to the total value of its cash flows at a particular future date…

Q: Future Value of an Annuity Calculate the future value. Present Value Interest Rate 10% monthly $0.00…

A: Annuity refers to the series of payments being made at regular intervals. When the payments are made…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: PMTIt is the minimum value that is required to pay every period constantly by a person.

Q: Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest…

A: Ordinary annuity refers to the series of payments at the end of the period that is compounded or…

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

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: Find the future value (FV) of the annuity due. (Round your answer to the nearest cent.) $165…

A: Monthly payment = $165Interest =7%Number of years = 11 years

Q: What's the interest rate of a 8-year, annual $3,600 annuity with present value of $20,000? (Use a…

A: Annuity amount=$3600Period of annuity=8yearsToday amount=$20000

Q: You buy an annuity that will pay you $24,000 annually for 25 years. The payments are paid on the…

A: This problem belongs to finding out the present value of annuity due. When annuity occurs in the…

Q: Complete present value of an ordinary annuity: Note: Round your answer to the nearest cent. Amount…

A: The present value of an annuity (PVA) is the stream of regular interval cashflow discounted at a…

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

A: The cumulative sum an investment currently retains, including the money invested and the interest…