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: An annuity due which pays 100 per month for 12 years has a present value of 7,908.   Calculate the…

A: We need to use RATE function in excel to calculate annual effective interest rate.The formula is:…

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

A:

Q: Use the ordinary annuity formula to determine the accumulated amount in the annuity.   ​$500…

A: A study that proves that the future worth of the money is lower than its current value due to…

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: 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: The future value is $

A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n  - 1) /interest…

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: How much interest is included in the future value of an ordinary simple annuity of $1,650 paid every…

A: The question can be solved as follows:

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 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: Find the present value of an ordinary annuity with deposits of 23,958 every 6 months for 4 years at…

A: The formula to compute present value:

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: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4% interest for 15…

A: Interest rate = 8 1/4% Interest rate = 8%+0.25% = 8.25% ------------------------------ Monthly…

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: Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest…

A: Calculation of future value of annuity: Answer: Future value of annuity is $20,724.67

Q: Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)

A: Ordinary Annuity: When the annuity payments are paid at the end of the period, such annuity payments…

Q: Find the future value of annuity due with a $150 monthly payment at 6 1⁄4 % interest after thirteen…

A: An annuity is a stream of cash flows that are regularly paid to an individual at regular intervals…

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: 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: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4 % interest for 10…

A: An annuity is a kind of deposit payment that an individual makes into an investment account or a…

Q: Find the present value of an ordinary annuity which has payments of $1000 per year for 12 years at…

A: The present value of an ordinary annuity is the present value of the same cash flows occurs at the…

Q: Determine the value of an ordinary annuity if $100 is deposited each month into an account earning…

A: Deposit amount (P) = $100 Monthly interest rate (r) = 0.041/12 = 0.00341666666666667 Monthly periods…

Q: The future value is $ (Round to 2 decimal places.)

A: interest rate =6% Period =4 years  Future value FACTOR =(1+r)n-1/r Future value FACTOR…

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] /…

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.