Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.)AnnuityPaymentPaymentFrequencyTimePeriod (years)NominalRate (%)InterestCompoundedPresent Valueof the Annuity$8,000every year205annually

Present value of an ordinary annuity99697.68Explanation:Step 1:we have to calculate the present…

Answered: Use Table 12-2 to calculate the present…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 20E

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Annuity Payment	Payment Frequency	Time Period (years)	Nominal Rate (%)	Interest Compounded	Present Value of the Annuity
$8,000	every year	20	5	annually

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Use Table 12-2 to calculate the present value (in $) of the annuity due. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Present Valueof the Annuity $700 every month 2 1 4 6 monthly
Use Table 12-1 to calculate the future value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity $7,500 every 6 months 5 6 semiannually $
For each of the following cases, calculate the present value of the annuity, assuming the annuity cash flows occur at the end of each year. SEE DETAILS IN PIC
Use Table 12-2 to calculate the present value (in $) of the annuity due. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Present Valueof the Annuity $400 every month 2 1/4 6 monthly $
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Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Annual Payment Rate $4,700 6.0 % 8.0 % 7,700 6,700 10.0 % Show Transcribed Text 1. 2. 3. Annuity Annual Payment Rate Interest Compounded Quarterly Annually Semiannually $ 5,700 Interest Compounded 8.0 % Quarterly 10,700 11.0% Annually 4,700 10.0 % Semiannually Period Invested 5 years 6 years 9 years Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) $ Period Invested 2 years 5 years 3 years Future Value of Annuity 172,892.28 Present Value of Annuity
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Present value of an annuity Consider the following case. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Interest rate Period (years) 7% 14 Amount of annuity $42,000 a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a (1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable? Explain why. The present value of the ordinary annuity is $. (Round to the nearest cent.) (…)
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Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Present Valueof the Annuity $8,000 every year 20 5 annually