What is the present value of an ordinary annuity with annual payments of $660 at 9% annual interest for 25 years?Click the icon to view the table.The present value of an ordinary annuity is S(Round to the nearest cent as needed.) Present Value of a $1.00 Ordinary AnnuityRate per periodPeriods 2%3%4%5%6%7%8%9%10%10.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.90921.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.73632.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.48743.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.1704.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.7916.5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.35576.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.8688.7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.3358.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759108.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145119.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495

In ordinary annuity, payment is due at the end of month. Present value of ordinary annuity can be…

What is the present value of an ordinary annuity with annual payments of $660 at 9% annual interest for 25 years? Click the icon to view the table. The present value of an ordinary annuity is S (Round to the nearest cent as needed.)

What is the present value of an ordinary annuity with annual payments of $660 at 9% annual interest for 25 years? Click the icon to view the table. The present value of an ordinary annuity is S (Round to the nearest cent as needed.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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An annuity pays a fixed amount of $3,000 at the end of each of the next 5 years. Assume the interest rate is 8%. Use Excel, and list the time period (0, 1, 2, 3, 4, 5) and the amount $3,000. Then, Use Excel function to calculate the present value of the annuity.Use Excel function to calculate the future value of the annuity 5 years (enf of 5th year) from now.Submit the Excel file with all the details of time periods, amount of payment, and the Excel functions used to calculate the answers.
Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). What is the future value of a 15-year annuity of $1,700 per period where payments come at the beginning of each period? The interest rate is 11 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value. For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n= 6 and /= 10 percent. Look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 * 6.716) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future value
If the future value of an ordinary, six-year annuity is $8,500 and the interest rates are9.5 percent, what's the future value of the same annuity due?
What are the annual cash flows (in $) of an annuity for 19 years, which costs $48,783 today, if the discount rate is 7.76 percent? Answer to two decimals.
Use graphical approximation techniques or an equation solver to approximate the desired interest rate. A person makes annual payments of $1000 into an ordinary annuity. At the end of 5 years, the amount in the annuity is $5700.46. What annual nominal compounding rate has this annuity earned? Type the interest rate: % (Round to 2 decimal places.)
Solve by using formulas. (Round your answer to the nearest cent.) Ordinary Annuity AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity (in $) $5,000 every 6 months 9 9.0 semiannually $
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Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 ? $0.00 $600.00 $2,386.09 18 ? $13,278.73 $354.57 $0.00 40 ? $0.00 $1,872.79 $40,000.00 60 ? $266,564.09 $500.00 $0.00 Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 nothing% (Round to two decimal places.) $0.00 $600.00 $2,386.09 18 nothing% (Round to two decimal places.) $13,278.73 $354.57 $0.00 40 nothing% (Round to two decimal places.) $0.00 $1,872.79 $40,000.00…
Find the present value of a 5-year annuity due if the annual payments are $600 and the interest rate is 11%. What is the difference between the present value of the annuity and the present value of the ordinary 5-year annuity?
What's the future value of a 3-year $500 ordinary annuity, if the quoted interest rate is 11.35%, compounded semiannually? Note that the annuity payments are annual but that the compounding is semiannual. Round your final answer to 2 decimal places. $1,729.62 O $1.757.72 $1,888.60 O $1,777.10 O $1.676.69
Use the formula for the future value of an ordinary annuity to solve for n when A = $6,000, the monthly payment r = $550 and annual intrest r = 8.5%
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 tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of Annuity

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