What is the present value of a S1,000 annuity tor 10 years, with the lirst payment occurring at the end of year 10 (that is, ten $1,000 payments occur- ring at the end of year 10 through year 19), given a discount rate of 10 percent?

Q: What is the value of an annuity at the end of 10years if $1,000 is deposited every six months into…

A: Introduction: Future value of an ordinary annuity can be defined as a metric which helps to know how…

Q: Calculate the future value of an ordinary annuity consisting of annually payments of $1,500 for 6…

A: An ordinary annuity is that annuity in which payments are made at the end of each period.

Q: What amount is required to purchase an annuity that pays $7000 at the end of each quarter for the…

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

Q: The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment…

A: Periodic payment = 20,000 Interest Rate = 18%/12 = 1.5% per month N = 15 years i.e. 180 months…

Q: What is the PV of a 8-year annuity due (payments at beginning of period

A: PV = PMT * ((1 - (1 + r)^(-n)) / (r * (1 + r)))Where:PV is the present valuePMT is the payment…

Q: What is the PV of an ordinary annuity with a $5,700 duwterly payment for 5 years if the appropriate…

A: We need to use present value of ordinary annuity formula to calculate value of PV of annuity.wherePV…

Q: The future value of regular annuity of $2,000 per year for 20 years is $73,888.32. What interest…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: what is the future value of an ordinary annuity of 2,200 per year for 15 years compounded at 16…

A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.

Q: Find the difference between the sums of an annuity due and an ordinary annuity for the following…

A: An annuity is a series of cash flows wherein an equal amount is paid every period. An ordinary…

Q: An annuity due of $100 each for 10 year has a PV of $850. What is the interest rate being offered?

A: Annuity=$100Period=10 yearsPresent value=$850Required is to find out interest rate.

Q: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…

A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…

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: 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: Find the present value of an ordinary annuity with deposits of $11,055 semiannually for 10 years at…

A: An annuity's present value is the current value, discounted at a certain rate, of a series of future…

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: The present value of a 10-year annuity immediate is 10,000$. The interest rate is j1=5% for the…

A: The interest rate changes over the lifespan of the annuity. We have the present value. We need the…

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: what is the value of annuity?

A: Time value of money means that the amount of money received in the present period will have more…

Q: Annuity A pays 1 at the beginning of each year for five years. Annuity B pays 1 at the beginning of…

A: Macaulay Duration is a weighted average of the maturities of all the income streams of a bond or a…

Q: Find the future value of an annuity of $1400 paid at the end of each year for 15 years, if interest…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: What is the future value of a $590 annuity payment over four years if interest rates are 8 percent

A: An annuity refers to a series of cash flow that occurs on a periodic basis. Here $590 is occurring…

Q: 10) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV)…

A: Solution:- When an equal amount is paid each period, it is called annuity. Present value of annuity…

Q: An annuity is set up that will pay $1,700 per year for ten years. What is the present value (PV) of…

A: The objective of this question is to calculate the present value of an annuity. An annuity is a…

Q: Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the…

A: Using excel PV function

Q: Use PVOA Table to find the present value of an ordinary annuity with an annual payout of P5,000 for…

A: Following is the answer to the question

Q: If the insurance plan where the insurance firm promises to make yearly payments of 200,000 pesos…

A: Annual payment = 200,000 pesos Interest rate = 6% Period from 11th year to 15th year = 5 Periods

Q: A company needs to buy an annuity package that will provide a future income to an individual over a…

A: Annuity amount, A1 = £4,421 Period, n1 = 13 years Interest rate per period, r1 = 4.0% The present…

Q: annual payments of $1,500 per year, at a disco

A: PV = PMT * [(1 - (1 + r)^(-n)) / r]Where:PV is the present value of the annuityPMT is the amount of…

Q: Determine the present value of an ordinary annuity of P1,000 per year for 10 years with the first…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: What is the present value of an ordinary annuity of P47,000 each year for eight years assuming a…

A: Solution Concept Ordinary annuity means the annuity which is received at the end of each period…

Q: ind the present value of a perpetuity starting at time 10 paying 100 nnually if the interest rate is…

A: A perpetuity is an annuity that goes on forever. In other words a perpetuity, as the name indicates,…

Q: what is the value of the annuity today

A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…

Q: What is the present value of a $700 annuity payment over six years if interest rates are 10 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: A 20-year annuity X has annual payments of $10,000 at the beginning of each year for 10 years, then…

A: A series of payment made at equal interval is called Annuity.

Q: What is the present value of a perpetuity with payments starting one year from now.  The first…

A: Present value of perpetuity can be calculated by formula that cash flow of first year divided by…

Q: What is the PV of a 6-year, $149 annuity due if the annual interest rate is 5% ?

A: The objective of this question is to calculate the present value of an annuity due. An annuity due…

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: company needs to buy an annuity package that will provide a future income to an individual over a…

A: Annuity is the uniform payments over a period of time and annuity dues are paid at the beginning of…

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.