You are given the following about two annuities-immediate: Annuity A pays 300 at the end of each year for 18 years. Annuity B pays 399.865 at the end of each year for 9 years. At an annual effective rate of interest i, the PV of both annuities are equal. Caleulate i. Possible Answers 12% 11% 10% D13% 14%
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- Annuity A pays 1 at the beginning of each year for five years.Annuity B pays 1 at the beginning of each year for four years.The Macaulay duration of Annuity A at the time of purchase is Σ/10. Both annuities offer thesame yield rate.Calculate the Macaulay duration of Annuity B at the time of purchase. Σ=221. Find the annual payments for an ordinary annuity and an annuity due for 8 years with a PV of $1,000 and an interest rate of 11%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: J. Find the DVI and aCalculate the future 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 appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Annual Payment Rate $4,700 6.0 % 8.0 % 7,700 6,700 10.0 % Show Transcribed Text 1. 2. 3. Annuity Annual Payment Rate Interest Compounded Quarterly Annually Semiannually $ 5,700 Interest Compounded 8.0 % Quarterly 10,700 11.0% Annually 4,700 10.0 % Semiannually Period Invested 5 years 6 years 9 years 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 appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) $ Period Invested 2 years 5 years 3 years Future Value of Annuity 172,892.28 Present Value of Annuity
- 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 AnnuityCalculate the future 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 appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1. $3,100 8.0 % Semiannually 9 years $79,500.77 2. 6,100 10.0 % Quarterly 5 years 3. 5,100 12.0 % Annually 6 yearsCalculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1, EVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. Annuity Payment $ 3,700 Annual Rate Interest Period Compounded Invested Future Value of Annuity 7.0% Semiannually 9 years 2. 6,700 8.0% Quarterly 5 years 3. 5,700 12.0% Annually 6 years
- Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest compounded semiannually. What is the total investment? What is the interest? E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $ 6228.82 . (Round to the nearest cent as needed.) The total investment was S and the earned interest was S (Round to the nearest cent as needed.)For each of the following situations involving annuities, solve for the unknown Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (=interest rate, and n number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. EVA of $1. PVA of $1, EVAD of $1 and PVAD of $1) 1 2 3. 4. 5 Present Value 368,041 714,457 600,000 200,000 Annuity Amount $ 4,000 105,000 110.000 96,048 8% 10% 10% n= 5 4 9 4Find the PV of a 26-year annuity-immediate with payments of 1, 2, 3, ..., 26 at an annual effective rate of interest ii = 7%. Possible Answers A 113.2 B 114.7 C 115.9 D 116.8 E 117.5
- An annuity pays $13 per year for 42 years. What is the future value (FV) of this annuity at the end of that 42 years given that the discount rate is 4%? OA. $817.59 B. $1,635.18 OC. $1,362.65 D. $1,907.71 ...At an annual effective interest rate of i, i > 0%, the present value of a perpetuity paying 10 at the end of each 3-year period, with the first payment at the end of year 6, is 32. At the same annual effective rate of i, the present value of a perpetuity-immediate paying 1 at the end of each 4-month period is X. Calculate X. a. 40.8 b. 39.8 41.8 d. 42.8 38.8 C. e.Consider two perpetuities (X and Y) at interest rate i. X provides level payments of $105 at the end of each year. Y provides a payment of $5 at the end of the first year, with payments increasing by $5 annually. Find i such that the present value of (X-Y) is a maximum. (Answer to the nearest .05%.)