the payments occurred 5. Caiculating Annuity Cash Flows. If you put up $20,000 today in exchange for a 8.5 percent, 12-year annuity, what will the annual cash flow be? orever?

Q: Annuity Present Values What is the present value of an annuity of $7,300 per year, with the first…

A: We have to necessarily find the present value of a deferred annuity. We will use the time value of…

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 4%…

A: Future value of an annuity:  The worth of a sum of money that will be paid on a specified date in…

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

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: 1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what…

A: 1. Investment= $10000 time= 4 years

Q: a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: You have the opportunity to buy a perpetuity that pays $1,000 annually. Your required rate of return…

A: Payments each year = Cash flow = C = $1000 Rate of Interest = r = 13.2% = 0.132

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: Given, The payments $4000 Interest rate is 10% Term is 20 years

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: How much should you pay today for a 10 year annuity that will provide annual payments of $10,000?…

A: Annual payment = $10,000Interest rate = 4%Period of annuity = 10 years

Q: Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate is…

A: In an ordinary annuity, the cash flow occurs at the end of each period.Present value of ordinary…

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: 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: Which will provide the largest yield on an annuity after 30 years with 6% annual interest,…

A: Given, N = 30 Years r = 6%

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 future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

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: Annuity Future Value Inputs Payment 80 Discount Rate/Period 6.00% Number of Periods 5 Annuity Future…

A: Future value of annuity is the future value of all the stream of cash flow.   Future value of…

Q: Would you prefer the following:   a. An ordinary annuity where you receive $500 each year for 7…

A: An ordinary annuity is one in which the cash flows occur at the end of each year or each period.…

Q: The table below contains information on four different annuities. a) Calculate the future value of…

A: The term "annuity" refers to a contract created and offered by financial institutions with the goal…

Q: Need excel solution...

A: The objective of the question is to determine the future value of an annuity given the present…

Q: How much would you pay today for a perpetuity of $ 1,000 per year if the prevailing interest rate is…

A: Perpetuity  is a type of security where, you pay money for an infinite amount of time. It keeps on…

Q: If you put up $29,000 today in exchange for a 7.25 percent, 13-year annuity, what will the annual…

A: An annuity refers to a payment series that is provided in exchange for a lump sum payment. It is…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.