Q: What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the…
A: STEP 1 Given a certain rate of return, present value (PV) is the current value of a future financial…
Q: What’s the interest rate of a 7-year, annual $3,900 annuity with a present value of $20,000? (Use a…
A: Calculate the interest rate as follows:MS-Excel --> Formulas --> Financials --> Rate
Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…
A: Future value of an annuity refers to the value of a periodic payment or accumulated amount after…
Q: Calculate the simple interest rate. (Round your answer to one decimal place.) P = $4300, I = $660,…
A: Simple interest is the interest calculated on the principal amount over some time whereas compound…
Q: A. What is the present value of a $500 perpetuity if the interest rate is 9%? Round your answer to…
A: Perpetuity = $500 A. Interest rate = 9% B. Interest rate =18%
Q: What's the present value, when interest rates are 8.0 percent, of a $70 payment made every year…
A: Interest % = 8% Annual Payment = 70 Present Value of Payments made in perpetuity = Annual Payment /…
Q: What is the present value of $800 per year annuity at an interest rate of 12%? Hint: the future…
A: An annuity refers to a payment plan that provides periodic payments in exchange for a lump sum…
Q: What's the interest rate of a 5-year, annual $4,200 annuity with present value of $16,000? (Use a…
A: Solution:-When an equal amount is paid each period, it is known as annuity.We know, present value of…
Q: if the annual rate is 5% and the annual infinity (forever) payment is $200, what is the present…
A: A perpetuity is a security that pays for an infinite amount of time.The present value of a…
Q: Calculate the future value. Present Value Interest Rate $0.00 8% monthly a. Determine the annuity…
A: Annuity refers to the series of payments being made at regular intervals. When the payments are made…
Q: What is the future value of a $500 annuity payment over four years if interest rates are 8 percent?…
A: Calculate the future value as follows:
Q: Fill in the missing present values in the following table for an ordinary annuity. Number of…
A: Present Value of Ordinary Annuity is calculated as: PV = PMT [(1 + r/n)nt - 1] / [(r/n) * (r/1 n-…
Q: perpetuity
A: Formula for present value of perpetuity: Present value of perpetuity = PMT/i Where PMT is the annual…
Q: If $16800 is deposited in a savings account today, what amount will be available three years from…
A: Future value is an estimate of the future cash flows that may be received at a future date,…
Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…
A: The future value is the future worth of the amount that will be paid or received in the future.
Q: Calculating Annuity Values For each of the following annuities, calculate the present value. Annuity…
A: Annuity is the sequence of equal amount of payments made at regular time gaps for a specified period…
Q: At 8 percent interest rate per year (annual interest payment), how many years does it take to…
A: Answer: Calculation of the time it will take to quadruple the money: Formula, we will use here:…
Q: What is the 'future value in one year' of $106 today if the annual interest rate is 6%? A.…
A: The mathematical formula of the concept is:
Q: 9. Examine the time line for the annuity shown. 250 (1.015) 250 (1.015) 250 (1.015) 250 (1.015)23…
A: a) Duration of annuity = 6 years In this question annuity for 24 periods of 3 months,…
Q: If the present value of an ordinary, 8-year annuity is $6,100 and interest rates are 8.0 percent,…
A: Present value of ordinary annuity = $6,100 Interest rate = 0.08 Present value of annuity due = ?
Q: what;s the present value of perpetuity that pays % 1, 563 per year if the appropriate interest rate…
A: The objective of this question is to calculate the present value of a perpetuity. A perpetuity is an…
Q: Future Value of an Annuity Calculate the future value. Present Value Interest Rate 10% monthly $0.00…
A: Annuity refers to the series of payments being made at regular intervals. When the payments are made…
Q: If the present value of an ordinary, 6-year annuity is $8,800 and interest rates are 9.5 percent,…
A: An annuity due is a type of annuity in which payments are made at regular time interval and at the…
Q: what is the time zero or right now value of $400 perpetuity due an interest rate of 7.5%
A: Variable in the question:Perpetuity =$400Interest rate-7.5%Present value of a perpetuity can be…
Q: What is the future value of a perpetuity paying 100 anually/? Assume 10% interest rate and cash…
A: Information Provided: Annuity = 100 Interest rate = 10%
Q: QUESTION 5 What is the present value of an annuity (to nearest dollar) that will give you 25…
A: FORMULA USED FOR CALCULATING THE PRESENT VALUE OF ANNUITY IS AS FOLLOW : GIVEN: RATE = 10% NPER =…
what is the time zero or right now value of $400 ordinary perpetuity an interest rate of 7.5%
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Calculate the future value. Present Value Interest Rate $0.00 8% monthly Payments $500.00 monthly Timing of Payment Years End Future Value 24 ??? a. Determine the annuity type. Ordinary Simple Annuity Ordinary General Annuity O Simple Annuity Due General Annuity Due b. Identify the following pieces of information to be used to calculate the future value of the annuity. Periodic Payment: PMT = Number of Payments per Year: PY = Total Number of Payments: N = Annual Interest Rate: r = = Number of Compoundings per Year: CY = c. Determine the future value of the annuity.Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 5 8% 0 $213.22 ? 16 15% 0 $3,317.78 ? 29 4.5% 0 $674.57 ? 300 1% 0 $2,538.86 ? Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 5 8% 0 $213.22 $nothing (Round to the nearest cent.)M6
- What is the future value?Future Value of an Annuity Calculate the future value. Present Value Interest Rate $0.00 10% monthly Payments $475.00 monthly Number of Payments per Year: PY= a. Determine the annuity type. O Ordinary Simple Annuity O Ordinary General Annuity O Simple Annuity Due O General Annuity Due b. Identify the following pieces of information to be used to calculate the future value of the annuity. Periodic Payment: PMT Total Number of Payments: N= Annual Interest Rate: r = Number of Compoundings per Year: CY c. Determine the future value of the annuity. Timing of Payment Years End 19 = Future Value ???what;s the present value of perpetuity that pays % 1, 563 per year if the appropriate interest rate is 6.8% ?
- Q3 If the present value of an ordinary, 8-year annuity is $6,100 and interest rates are 8.0 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) PRESENT VALUEEstimating 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…Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 5 10% 0 $329.44 ? 15 18% 0 $1,277.33 ? 29 4% 0 $712.45 ? 260 0.7% 0 $425.09 ? Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 5 10% 0 $329.44 $nothing (Round to the nearest cent.)
- Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 10 9% 0 $286.87 ? 18 16% 0 $1,397.76 ? 30 2.5% 0 $721.92 ? 280 1% 0 $553.71 ? Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 10 9% 0 $286.87 $nothing (Round to the nearest cent.) 18 16% 0 $1,397.76 $nothing (Round to the nearest cent.) 30 2.5% 0 $721.92 $nothing (Round to the nearest cent.) 280 1% 0 $553.71 $nothing (Round to the nearest cent.)At 8 percent interest rate per year (annual interest payment), how many years does it take to quadruple your money? O A. 9.86 O B. 15.24 O C. 12.18 O D. 18.01Q.What is the present value of a perpetuity that will pay $450 per year with the first payment occurring at year eleven if the appropriate interest rate is 8.5%?
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)