The monthly compounded interest rate is 10%. What is the effective annual interest rate and what is the present value of an annuity cashflow stream of $100 to be received every quarter for the next three years? Give answers to two decimal places and show all your workings.
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- The present value of a 4-year annuity is $47,000. The first annual cash flow occurs one year from today. If the discount.rate is 4.8%, what is the payment amount? Enter your answer as a positive number, and round to the nearest penny.Compute the present value of an annuity of $621 per year for 25 years, given a discount rate of 6 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Your Answer: AnswerWhat is the present value of an annuity of $4000 received at the beginning of each year for the next eight years? The first payment will be received today and the discount rate is 9% ?
- Find the future value of an annuity due with an annual payment of $13,000 for three years at 5% annual interest using the simple interest formula. How much was invested? How much interest was earned? What is the future value of the annuity? (Round to the nearest cent as needed.)Find the future value of an annuity due with an annual payment of $9,000 for two years at 7.5% annual interest using the simple interest formula. Find the total amount invested. Find the interest. What is the future value of the annuity? (Round to the nearest cent as needed.)Find the future value of an annuity due with an annual payment of $14,000 for three years at 5% annual interest using the simple interest formula. How much was invested? How much interest was earned? What is the future value of the annuity? (Round to the nearest cent as needed.) How much was invested? How much interest was earned? (Round to the nearest cent as needed.)
- Suppose an annuity will pay $11,000 at the beginning of each year for the next 7 years. How much money is needed to start this annuity if it earns 7.7%, compounded annually? (Round your answer to the nearest cent.)$Find the amount accumulated FV in the given annuity account. (Assume end- of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $300 is deposited monthly for 10 years at 5% per year in an account containing $9,000 at the start FV = $ Need Help? Read It Watch ItThe present value of a perpetuity with annual cash flows of $1,000 each year is $15,000. What is the annual interest rate? Round your answer to two decimals.
- Find the present value annuity factor for a 14-year annuity whose annual rate is 5.7% with monthly compounding. Round your answer to the nearest thousandth place (3 digits after the decimal point).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.Assume you won a prize and will recelve $32,800 for the next 16 years. a. How much is your prize worth now If the interest rate is 17 percent? (Enter your answer as a whole number rounded to 2 decimal places.) b. Should you accept $208.000 now in exchange for the future payments? O Yes O No