What is the present value of an annuity of $6,000 to be received at the beginning of each of the next eight periods assuming an interest rate of 10%?

Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…

A: Present value of annuity payment - it means present value of future annual equal payment made to a…

Q: A 20 year annuity pays $50 at the beginning of each month during the first year, $55 at the…

A: Time period = 20 years  Nominal annual interest rate = 6% Increase in the amount on yearly basis =…

Q: A 11-year annuity pays $1,400 per month, and payments are made at the end of each month. The…

A: The idea of the time value of money (TVM) holds that a quantity of income is valued sooner than it…

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

A:

Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.

A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…

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: calculate the future value of an annual annuity of $5,000, beginning today and continuing for 10…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: What is the present value of a 8-year ordinary annuity with annual payments of $523, evaluated at a…

A: The PV of an annuity refers to the total value of its cash flows at present assuming they are…

Q: What is the Present Value of a 3-year ordinary annuity of $100 at 5%?  For clarity, the annuity pays…

A: present value of ordinary annuity formula: PVA=A×1-11+rnrwhere,A=annual paymentr=interest…

Q: Find the interest rate that an ordinary annuity pays, if the annuity pays $312 per month with its…

A: An annuity pays regular and constant payments over a period of time. Here the annuity amount is $312…

Q: What is the future value of an annuity of $2,000 invested at the end of each of the next six periods…

A:

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…

A:

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: If the present value of an ordinary, 6- year annuity is $7,200 and inter present value of the same…

A: In ordinary annuity there are payments at the end of period only and in annuity due payments are at…

Q: Find the future value of an annuity of $1300 paid at the end of each year for 15 years, if interest…

A: Annuity is the payment of fixed amount at the end(ordinary) or beginning(due) of a financial period…

Q: What is the present value of an annuity of $4000 received at the beginning of each year for the…

A: The present value of an annuity is an estimate of the present worth of future annuity payments based…

Q: What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?

A: Given: Rate: 7% Annuity =300      Number of years = 5

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: A perpetuity pays $100 each year, with the first payment scheduled two years from now. Assume that…

A: Amount of $100 will be paid by a perpetuity and that will be started from year 2 (two year from…

Q: If the present value of an ordinary, six-year annuity is $8,500 and the interest rates are 9.5…

A: Given: Resent value of Ordinary Annuity = $8500 Interest Rate = 9.5% Time =6 years So, the value of…

Q: What is the present value of an annuity of $6,000 to be received at the end of each of the next…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Annuity will pay $200 at the end of each of the next 10 years and $600 at the end of each of the…

A: The Present Value of Annuity (PVA) is a financial concept that calculates the current worth of a…

Q: Calculate the present value of a 30-year annuity with annual payments which pays an initial payment…

A: Computation:

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: hat is the present value of a perpetuity paying $1500 each year, if the effective annual interest…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

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: What is the future value of an annuity of $2,000 invested at the beginning of each of the next six…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: If the present value of an ordinary, 6-year annuity is $9,400 and interest rates are 9.5 percent,…

A: Time value of money is the concept widely used by the management to determine the worth of money…

Q: If the present value of an ordinary, 5-year annuity is $6,400 and interest rates are 11 percent,…

A: Present value of an ordinary, annuity = $6,400 Time Period = 5 Years Interest Rate = 11%

Q: You purchase an ordinary annuity with 4% interest and will receive regular quarterly payments of…

A: The interest rate is 4% Quarterly rate, the rate is 4%4= 1% Regular Quarterly payment, PMT is $4500…

Q: The amount (future value) of an ordinary annuity is given. Find the periodic payment. (Round your…

A: An ordinary annuity is a stream of constant cash flows that occur at the end of every year.

Q: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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: Calculate the present value of a 3-year ordinary annuity of $100 if the appropriate interest rate is…

A: Ordinary Annuity  N = 3 Annuity Amount = 100 Interest rate = 10%

Q: What is the present value of an ordinary annuity of 2,200 per year for 15 years discounted back to…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: What is the future value of an annuity of 15 deposits of $6407 at the end of each year with a…

A: Step1: Calculating the future value of annuity. We have,Future value of annuity = P [(1+r)n – 1] /…

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: Please assume an annuity due of $100,000 a year for 10 years.  Assuming a discount rate of 6%,…

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

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.