The present value of 15 equal payments of size $400 at the beginning of every year starting today is $3795.66. The present value of 16 equal payments of size $500 at the beginning of every year starting today is $4913.56. Calculate the annual effective interest rate i.
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- At an annual effective interest rate of i, i > 0%, the present value of a perpetuity paying 10 at the end of each 3-year period, with the first payment at the end of year 6, is 32. At the same annual effective rate of i, the present value of a perpetuity-immediate paying 1 at the end of each 4-month period is X. Calculate X. a. 40.8 b. 39.8 41.8 d. 42.8 38.8 C. e.The present values of the following three annuities are equal: • perpetuity immediate paying 1 year year, calculated at an annual effective interest rate of 7.25%. • 50-year annuity immediate paying 1 each year, calculated at an annual effective interest rate of j%. • n−year annuity immediate paying 1 each year, calculated at an annual effective interest rate of j − 1%. Calculate n.For the following annuity due, determine the nominal annual rate of interest. Future Present Periodic Payment Period Term Conversion Value Value Rent Period $16,000 $400 3 months 11 years annually The nominal annual rate of interest is%. (Round to two decimal places as needed.)
- Determine the equivalent annual worth for years 1 through 10 of a uniform series of payments of $31,700 that begins in year 3 and ends in year 9 (7 years). Use an interest rate of 6.3% per year.If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %find the present value of the given future payment at the specified interest rate 2.$460 due in four years at 11% effective
- Consider two perpetuities (X and Y) at interest rate i. X provides level payments of $105 at the end of each year. Y provides a payment of $5 at the end of the first year, with payments increasing by $5 annually. Find i such that the present value of (X-Y) is a maximum. (Answer to the nearest .05%.)An annuity due which pays 100 per month for 12 years has a present value of 7,908. Calculate the annual effective interest rate used to determine the present I value.An annual payment of P14 000 is made with interest rate of 10% compounded quarterly for 16 years. 1. Determine the present worth considering annuity due. 2. Compute the difference of the future amounts of the annuity due and ordinary annuity. 3. If the first payment was made at the end of the 10th year, determine the present worth considering ordinary annuity.
- a) What is the present worth of equal payments of $25,000 made semi-annually (i.e., twice every year) at a nominal interest rate of 8%: i. for a period of 20 years? ii. in perpetuity?Assume time is measured in years and today is time 0. A payment stream is due to start in 7 years' time from today. 12 annual payments in advance, each of amount 99, will be made. Thus the first payment is made at time 7. Assuming the effective rate of interest is 4% per annum, calculate the value at time 0 of the payment stream. Give your answer to 2 decimal places.1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. (a) If the account was subject to a force of interest δ(t) = kt where t is in years, k =? (b) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?