Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:

Q: What is Simple Annuity? (payment interval, and interest period, time of payment, duration)

A: Given Simple annuity Payment interval Interest period Time of payment  Duration…

Q: ompare an ordinary annuity with a prepayment annuity.

A: Annuity is a uniform series of cash flows over a given number of periods.

Q: Explain how the present value of an ordinary annuityinterest table is converted to the present value…

A:

Q: What are the primary characteristics of an annuity? Differentiate between an “ordinary annuity” and…

A: Annuity: In the realm of finance, an annuity is a series of recurring payments. Annuities include…

Q: Compute the present value of an ordinary annuity, an annuity due, and a deferred annuity.

A: Computation of the present value (PV) of an ordinary annuity can be done by using the…

Q: 3. P10 000 deposited every quarter for 12 years at 6% per year compounded quarterly. *

A: Quarterly deposit (D) = P 10,000 Period = 12 Years Number of quarterly deposits (n) = 12*4 = 48…

Q: Calculate the future value of an annuity, with case A being an ordinary annuity and case B being an…

A: Annuities - Annuities are the agreements and contracts that promise periodic and regular payments or…

Q: : Identify the different types of annuities, calculate the present value and future value of both an…

A: Annuities are payments are that paid periodically each period these amounts are fixed ,variable and…

Q: Number of Payments or Years 4 22 32 11 Annual Interest Rate 4 7% 11% 9% 8% Future Value $0.00…

A: Present Value of Annuity = Annuity  * (1 - (1 / (1 + Interest Rate)^time)) / Interest RateFuture…

Q: Which of the following cannot be calculated? Select one: a. the interest rate on perpetuity given…

A: Perpetuity is referred to as an annuity, which does not have an end or the stream of the cash…

Q: Discuss the present value of an annuity due with an example

A: Present value of an annuity An Annuity is a stream of regular periodic payments made or received for…

Q: 2. P3 500 deposited every 6 months for 10 years at 8% per year compounded semi-annually.

A: Semi annual deposit (P) = P 3500 Period = 10 Years Number of semi annual deposits (n) = 10*2 = 20…

Q: Number of Payments or Years 5 20 26 340 Annual Interest Rate 9% 15% 2% 1.2% Present Value 0 0 0 0…

A: Future value of each of the annuity is calculated in excel using FV function

Q: Derive the formula

A: Future worth or Future value refers to the value of current asset at some future point of time on a…

Q: How do I determine the present value of an annuity by single computation?

A: The capital is the backbone of the company, and the company will be willing to raise the capital for…

Q: Explain the difference between an ordinary annuity and an annuity due situation.

A: Annuity: It is amount of money payable to an individual at a periodic basis which is normally a…

Q: What is the formula in finding the present value of a deferred annuity

A: Deferred annuity is a type of contract which pays the purchaser a periodic payment or an lump sum…

Q: 1. P2 000 deposited every year for 5 years at 9% per year compounded annually.

A: Annual deposit (P) = P 2000 Number of annual deposits (n) = 5 Interest rate (r) = 9%

Q: Explain how the future value of an ordinary annuityinterest table is converted to the future value…

A:

Q: (Click on the following icon in order to copy its contents into a spreadsheet.) Number of Annual…

A: Present Value of annuity = P*{1-{1/[(1+r)^n]}/r} Where, P= Annuity r = annual interest rate n = no.…