You are offered an annuity that will pay $5,420 per quarter for 8 years (first payment made today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today?
Q: Assume that Social Security promises you $32,000 per year starting when you retire 45 years from…
A: Information Provided: Annual payment = $32,000 Discount rate = 4% No. of payments till retirement =…
Q: Your insurance company offered you an annuity that pays you $100 at the end of each year. The life…
A: GIVEN, A= $100 N=10 R=8%
Q: what is the present value of the 3 year annuity of $270 if the discount rate is 7% if you have to…
A: The formula to compute present value of annuity as follows:
Q: An insurance annuity offers to pay you $1,000 per quarter for 20 years starting immediately. If you…
A: Excel Spreadsheet:
Q: How much would you be willing to pay today for an ordinary annuity that makes equal annual payments…
A: An ordinary annuity is the series of an equal payment that is paid or received at each week, month,…
Q: An investor is considering an annuity that pays $40,000 per year for four years. 1. Assuming the…
A: (answer of first 3 parts, please specify if any other part is required) We can compute the present…
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: what is the value today of Social Security's promise?
A: Social security is the amount which is given by certain employers in addition to salary that gets…
Q: An investment will provide you with $100 at the end of each year for the next 10 years. What is the…
A: Time period is 10years Discount rate is 8% Annuity amount per year is $100 To Find: Present Value…
Q: Assume that Social Security promises you $34,000 per year starting when you retire 45 years from…
A: We have to find the PV of an annuity immediate, starting 45 years from today. All the relevant…
Q: Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…
A: Present Value of Annuity=Annuity×1-11+ratetimerate
Q: Assume that Social Security promises you $40,000 per year starting when you retire 45 years from…
A: Social security is the amount which is given by certain employers in addition to salary that gets…
Q: You buy an annuity that will pay you $24,000 a year for 25 years. What is the value of this annuity…
A: Present value of annuity = Annuity amount * PVA of $1
Q: You are offered an annuity that will pay $4,250 per quarter for 8 years (first payment made today).…
A: Annuity worth refers to an amount required today for the fulfillment of payment of all series of…
Q: You are considering an annuity which costs $120,000 today. The annuity pays $13,255 a year at an…
A: Given: Present value of Annuity=$120000Annuity =$13255Interest rate (r)=9.75%
Q: You are offered an annuity that will pay $11,000 per year for 24 years (the first payment will occur…
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: what is the value of the annuity today
A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…
Q: You are going to receive a set payment at the end of each year for the next 12 years. If the proper…
A: The present value method is an important method of the time value of money. The present value is the…
Q: You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement.…
A: Given, The cashflows is $90,000 The rate of interest is 8%
Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…
A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5
Q: What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be…
A: As a fist step, let's shifts ourselves to the end of t = 10 years.Annuity, A = $ 2,500; n = number…
Q: You are considering an annuity that costs $91,288 today. The annuity pays $6,500 a year at an annual…
A: The length of the annuity will depend upon the costs of the annuity, the periodic payment, and the…
Q: You buy an annuity, which will pay you $22,000 a year for twenty years. The payments are paid on the…
A: To calculate the present value of the annuity we will use the below formula Present value =…
Q: You purchased an annuity that will make payments of $31,000 every 5 years for the next 10 years. If…
A: We need to use present value formula below to calculate annuity worth today.Annuity worth today =…
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…
Q: Your insurance company offered you an annuity that pays you $100 at the end of each year. The life…
A: An annuity is an agreement between an individual and an insurance company in which the individual…
Q: you want to establish an annuity that will pay $7,500 for the next twenty years (end year) your…
A: Present value is an estimate of the present value of future cash values that may be received at a…
Q: A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is…
A: The question is based on the concept of perpetuity payment and concept of time value of money.Future…
Q: What is the present value of the annuity?
A: We can determine the PV using PV of annuity due formula as below:In the formula below:PMT = annual…
Q: You are offered an annuity that will pay $14,000 per year for 13 years (the first payment will be…
A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment.…
You are offered an
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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 annuityYou are offered an annuity that will pay $11,000 per year for 24 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 12%, what is the annuity worth to you today? $914,490.09 $1.299,707.65 $95,902.77 $1,455,672.57 $85.627.47 You are told that if you invest $10,900 per year for 12 years (all payments made at the end of each year) you will have accumulated $670,000 at the end of the period. What annual rate of return is the investment offering? 29.99% 23.63% 20.63% 26.99% 33.44%You are offered an annuity that will pay $14,000 per year for 13 years (the first payment will be made today). If you feel that the appropriate discount rate is 8%, what is the annuity worth to you today? $110,652.86 $300,934.15 $119.505.09 $325,008.88 $242,876.85 4.0
- Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%;a. What should be the present value of this annuity?b. If you are given the first payment immediately starting today, what should be the worth of this annuity?How much would you be willing to pay today for an ordinary annuity that makes equal annual payments of $3,000 each year. You will receive your first payment 7 years from today and you will receive your last payment 32 years from today. The interest rate on this annuity is 4.1%.Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%. What should be the present value of this annuity? If you are given the first payment immediately starting today, what should be the worth of this annuity? Which payment mode will you accept? What will be basis of your decision under time value of money concept?
- You buy an annuity that will pay you $24,000 annually for 25 years. The payments are paid on the first day of each year. What is the value of this annuity today if the discount rate is 8.5 percent? 241309 266498 258319 251409 245621 A O BO .C DO E OWhat is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will come 45 years from now). If your discount rate is 7%, compounded annually, and you plan to live for 15 years after retiring (so that you will get a total of 16 payments including the first one), what is the value today of Social Security´s promise?
- you want to establish an annuity that will pay $7,500 for the next twenty years (end year) your financial institution will establish such an annuity if you deposit $104,000 today. what is the implied rate that the institution is paying on this annuity?You have been offered a 7-year annunity of $2,000 beginning four years from now. If the discount rate is 8%, what is the value of the annuity today1) Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%; a) What should be the present value of this annuity? b) If you are given the first payment immediately starting today, what should be the worth of this annuity?