What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000 at the end of Year 4 if the interest rate is 5%? $8,509 $8,957 $9,428 $9,924 $10,446
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…
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A: Given The periodic annuity payment is $8000 Term is 8 years Annual rate is 7% compounded semi…
Q: Present Value of an Annuity What is the present value of a $1,600 annuity payment over 6 years if…
A: An annuity refers to a series of cash flows occurring at regular periodic intervals. Here the amount…
Q: f you were to put $1,000 in the bank each year for the next 10 years at 6% interest, which table…
A: Future value of $ 1: This table is used to calculate the future value of a single amount invested…
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: A 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments…
A: First payment = $ 1000 Next 5 payments = $ 1000 Growth rate in payments after 6 payments = 5.06%…
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: 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 is the dollar difference (on an absolute basis) in the present value of receivin $9,000…
A: Present value illustrates the current value of a sum of money that will be received or paid in the…
Q: future value
A: Future value is the value of money or asset in the future. It is very important to investors and…
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: If the future value of an ordinary, 7-year annuity is $6,200 and interest rates are 6 percent,…
A: Ordinary annuity refers to the annuity in which the movement of cash should be made at the end of…
Q: What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The…
A: Annuity = a = $4600Time = t = 4 YearsInterest Rate = r = 7%
Q: A growing annuity pays $1,000 at the end of the second year (t=2). The payment grows 3% per year…
A: Payment after second year = $1000 Number of payments = 5 Growth rate = 3% Discount rate = 8%
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: Calculate the present value of an ordinary annuity providing $500 every year for 6 years. The…
A:
Q: ity
A: of the annuity has to be found out, The payment is made in year 4 up to the 12th year, (9 times)…
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: An annuity pays $12 per year for 47 years. What is the future value (FV) of this annuity at the end…
A: Annuity paid per year = $12Discount rate = 7%Number of years = 47 years
Q: The present value of a five-year annuity-immediate, with payments of $100 each six times per year,…
A: Present Value (PV)= $2093 Time (t)= 5 years Annuity Amount (A)= $100 (6 times a year)= $600 Rate of…
Q: A perpetuity will pay $736 per year, starting five years after the perpetuity is purchased. (The…
A: Present value refers to the current worth or value of a future sum of money or cash flow. It is the…
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A: The objective of this question is to calculate the present value of an annuity. An annuity is a…
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A: The present value is the present worth of the amount that will be paid or received at future.
Q: Assume you receive $240,000 in five years and the annual interest rate is six percent. Factors for a…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: What's the present value of a perpetuity
A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…
Q: perpetuity
A: Formula for present value of perpetuity: Present value of perpetuity = PMT/i Where PMT is the annual…
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A: The interest rate represents the percentage of the principal amount either charged for borrowing or…
Q: You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective…
A: Present value of annuity = $10000 Interest rate (r) = 4% Annuity amount (A) = $500 Additional amount…
Q: What is the value today of a 15-year annuity that pays $630 per year? The annuity's first payment…
A: An annuity refers to a series of periodic payments exchanged in place of a lump sum payment. It is…
Q: What's the present value of a perpetuity
A: The present value of perpetuity is determined by dividing the amount of regular cash flow by the…
Q: Assume that an annuity has an annual cash flow of $375 in Years 11 through: Also assume that the…
A: Value of annuity is the present value of cash flow from the annuity based on the time and interest…
Q: An annuity pays $13 per year for 100 years. what is the future value (PV) of this annuity at the end…
A: The future value is the value of the annuity payments at the end of the annuity term.
Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…
A: PMT = 58 Period = 13 years Nominal rate of interest = 7.23% Additional amount = 1000
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: 7) a. b. C. d. How much more is a perpetuity of $8,000 worth than an annuity of the same amount for…
A: Annuity is a series of payments made at equal intervals of time. Perpetuity is an annuity having…
Q: What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: How much more is a perpetuity of $6,000 worth than an annuity of the same amount for 10 years?…
A: Annuity is a series of payments made at equal intervals of time. Perpetuity is an annuity having…
Q: You buy an annuity that will pay you $24,000 annually for 25 years. The payments are paid on the…
A: This problem belongs to finding out the present value of annuity due. When annuity occurs in the…
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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: What is the present value of a 8-year ordinary annuity with annual payments of $511, evaluated at a…
A: Annuity is the fixed sum of money or fixed amount of cash flow occurring for certain number of years…
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment? Use a nominal rate of 7.23%. $1,039 $946 O $882 O $990 O $873
- How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.48What is the present value of an ordinary annuity that pays $1,000 per year for 4 years, assuming the annual discount rate is 7 percent? a. $3,051.58 b. $762.90 c. $3,624.32 d. $3,738.32 e. $3,387.21What is the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? a) $5,788 b) $4,750 c) $5,000 d) $5,250 e) $5,513
- What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The appropriate interest rate is 7 percent. Answers: a. $10,000 b. $6,452 c. $20,423.74 d. $4,657 An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? Answers: a. $1,134 b. $5,324 c. $2,345.50 d. $2,569.77 *PLEASE SHOW ALL STEPS! CANNOT USE EXCEL TO SOLVE! CAN USE CALCULATOR FUNCTIONS!!What’s the present value of a 5-year ordinary annuity of $100 plus an additional$500 at the end of Year 5 if the interest rate is 6%? What is the PV if the $100 paymentsoccur in Years 1 through 10 and the $500 comes at the end of Year 10?($794.87, $1,015.21)The future value of regular annuity of $2,000 per year for 20 years is $73,888.32. What interest rate is implied? a) 4.79% b) 5.48% c) 9.44% d) 6.04% e) 8.24%
- What is the future value of an annual annuity of $10,400 invested at the beginning of each year for 6 years earning an interest rate of 15%, compounded annually? Group of answer choices $107,312 $91,039 $104,695 $115,164•An insurance company offers to pay you $1,000 per year for 10 years if you will pay $6,710 up front. What rate is implicit in this 10-year annuity?What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to the present at 11 percent?
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