Precalculus: Mathematics for Calculus - 6th Edition
6th Edition
ISBN: 9780840068071
Author: Stewart, James, Redlin, Lothar, Watson, Saleem
Publisher: Cengage Learning
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Chapter 12.4, Problem 2E
To determine
To fill: The ______ of an annuity is the amount that must be invested now at interest rate i per time period to provide n payments each of amount R.
Expert Solution & Answer
Answer to Problem 2E
The present value of an annuity is the amount that must be invested now at interest rate i per time period to provide n payments each of amount R.
Explanation of Solution
An annuity is a form of financial contract that are typically used for retirement plans by the insurance companies which assures guaranteed payment to the insurer. It is paid by the insurance company for a certain period of time or on lifetime basis.
A present value of annuity computes the total present value of a series of cash flows that are estimated for the future. The present value of annuity is based on the time value of money. The formula used to for present value of annuity is as follows,
Here,
AP = Present Value of Annuity
R = Periodic Payment
i = Interest Rate
n = Number of Years
Therefore, the present value of an annuity is the amount that must be invested now.
Chapter 12 Solutions
Precalculus: Mathematics for Calculus - 6th Edition
Ch. 12.1 - A sequence is a function whose domain is...Ch. 12.1 - Prob. 2ECh. 12.1 - Prob. 3ECh. 12.1 - Prob. 4ECh. 12.1 - Prob. 5ECh. 12.1 - Prob. 6ECh. 12.1 - Prob. 7ECh. 12.1 - Prob. 8ECh. 12.1 - Prob. 9ECh. 12.1 - Prob. 10E
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If we know the first and second...Ch. 12.3 - Prob. 4ECh. 12.3 - Prob. 5ECh. 12.3 - Prob. 6ECh. 12.3 - Prob. 7ECh. 12.3 - Prob. 8ECh. 12.3 - Prob. 9ECh. 12.3 - Prob. 10ECh. 12.3 - Prob. 11ECh. 12.3 - Prob. 12ECh. 12.3 - Prob. 13ECh. 12.3 - Prob. 14ECh. 12.3 - Prob. 15ECh. 12.3 - Prob. 16ECh. 12.3 - Prob. 17ECh. 12.3 - Prob. 18ECh. 12.3 - Prob. 19ECh. 12.3 - Prob. 20ECh. 12.3 - Prob. 21ECh. 12.3 - Prob. 22ECh. 12.3 - Prob. 23ECh. 12.3 - Prob. 24ECh. 12.3 - Prob. 25ECh. 12.3 - Prob. 26ECh. 12.3 - Prob. 27ECh. 12.3 - Prob. 28ECh. 12.3 - Prob. 29ECh. 12.3 - Prob. 30ECh. 12.3 - Prob. 31ECh. 12.3 - Prob. 32ECh. 12.3 - Prob. 33ECh. 12.3 - Prob. 34ECh. 12.3 - Prob. 35ECh. 12.3 - Prob. 36ECh. 12.3 - Prob. 37ECh. 12.3 - Prob. 38ECh. 12.3 - Prob. 39ECh. 12.3 - Prob. 40ECh. 12.3 - Prob. 41ECh. 12.3 - Prob. 42ECh. 12.3 - Prob. 43ECh. 12.3 - Prob. 44ECh. 12.3 - Prob. 45ECh. 12.3 - Prob. 46ECh. 12.3 - Prob. 47ECh. 12.3 - Prob. 48ECh. 12.3 - Prob. 49ECh. 12.3 - Prob. 50ECh. 12.3 - Prob. 51ECh. 12.3 - Prob. 52ECh. 12.3 - Prob. 53ECh. 12.3 - Prob. 54ECh. 12.3 - Prob. 55ECh. 12.3 - Prob. 56ECh. 12.3 - Prob. 57ECh. 12.3 - Prob. 58ECh. 12.3 - Prob. 59ECh. 12.3 - Prob. 60ECh. 12.3 - Prob. 61ECh. 12.3 - Prob. 62ECh. 12.3 - Prob. 63ECh. 12.3 - Prob. 64ECh. 12.3 - Prob. 65ECh. 12.3 - Prob. 66ECh. 12.3 - Prob. 67ECh. 12.3 - Prob. 68ECh. 12.3 - Prob. 69ECh. 12.3 - Prob. 70ECh. 12.3 - Depreciation A construction company purchases a...Ch. 12.3 - Prob. 72ECh. 12.3 - Bouncing Ball A ball is dropped from a height of...Ch. 12.3 - Bacteria Culture A culture initially has 5000...Ch. 12.3 - Mixing Coolant A truck radiator holds 5 gal and is...Ch. 12.3 - Musical Frequencies The frequencies of musical...Ch. 12.3 - Bouncing Ball A ball is dropped from a height of 9...Ch. 12.3 - Prob. 78ECh. 12.3 - St. Ives The following is a well-known childrens...Ch. 12.3 - Prob. 80ECh. 12.3 - Bouncing Ball A certain ball rebounds to half the...Ch. 12.3 - Prob. 82ECh. 12.3 - Geometry A circular disk of radius R is cut out of...Ch. 12.3 - Prob. 84ECh. 12.3 - PROVE: Logarithms of a Geometric Sequence If a1,...Ch. 12.3 - Prob. 86ECh. 12.3 - Prob. 87ECh. 12.3 - Prob. 88ECh. 12.3 - Prob. 89ECh. 12.4 - An annuity is a sum of money that is paid in...Ch. 12.4 - Prob. 2ECh. 12.4 - Prob. 3ECh. 12.4 - Annuity Find the amount of an annuity that...Ch. 12.4 - Annuity Find the amount of an annuity that...Ch. 12.4 - Prob. 6ECh. 12.4 - Prob. 7ECh. 12.4 - Prob. 8ECh. 12.4 - Prob. 9ECh. 12.4 - Saving How much money should be invested monthly...Ch. 12.4 - Prob. 11ECh. 12.4 - Prob. 12ECh. 12.4 - Prob. 13ECh. 12.4 - Funding an Annuity A 55-year-old man deposits...Ch. 12.4 - Prob. 15ECh. 12.4 - Prob. 16ECh. 12.4 - Prob. 17ECh. 12.4 - Prob. 18ECh. 12.4 - Mortgage Dr. Gupta is considering a 30-year...Ch. 12.4 - Prob. 20ECh. 12.4 - Prob. 21ECh. 12.4 - Prob. 22ECh. 12.4 - Prob. 23ECh. 12.4 - Prob. 24ECh. 12.4 - Interest Rate John buys a stereo system for 640....Ch. 12.4 - Prob. 26ECh. 12.4 - Prob. 27ECh. 12.4 - Interest Rate A man purchases a 2000 diamond ring...Ch. 12.4 - Prob. 29ECh. 12.4 - Prob. 30ECh. 12.4 - Prob. 31ECh. 12.5 - Mathematical induction is a method of proving that...Ch. 12.5 - Prob. 2ECh. 12.5 - Prob. 3ECh. 12.5 - Prob. 4ECh. 12.5 - Prob. 5ECh. 12.5 - Prob. 6ECh. 12.5 - Prob. 7ECh. 12.5 - Prob. 8ECh. 12.5 - Prob. 9ECh. 12.5 - Prob. 10ECh. 12.5 - Prob. 11ECh. 12.5 - Prob. 12ECh. 12.5 - Prob. 13ECh. 12.5 - Prob. 14ECh. 12.5 - Prob. 15ECh. 12.5 - Prob. 16ECh. 12.5 - Prob. 17ECh. 12.5 - Prob. 18ECh. 12.5 - Prob. 19ECh. 12.5 - Prob. 20ECh. 12.5 - Prob. 21ECh. 12.5 - Prob. 22ECh. 12.5 - Prob. 23ECh. 12.5 - Prob. 24ECh. 12.5 - Prob. 25ECh. 12.5 - Prob. 26ECh. 12.5 - Prob. 27ECh. 12.5 - Prob. 28ECh. 12.5 - Prob. 29ECh. 12.5 - Prob. 30ECh. 12.5 - Prob. 31ECh. 12.5 - Prob. 32ECh. 12.5 - Prob. 33ECh. 12.5 - Prob. 34ECh. 12.5 - Prob. 35ECh. 12.5 - Prob. 36ECh. 12.5 - Prob. 37ECh. 12.5 - Prob. 38ECh. 12.6 - An algebraic expression of the form a + b, which...Ch. 12.6 - Prob. 2ECh. 12.6 - The binomial coefficients can be calculated...Ch. 12.6 - Prob. 4ECh. 12.6 - Prob. 5ECh. 12.6 - Prob. 6ECh. 12.6 - Prob. 7ECh. 12.6 - Prob. 8ECh. 12.6 - Prob. 9ECh. 12.6 - Prob. 10ECh. 12.6 - Prob. 11ECh. 12.6 - Prob. 12ECh. 12.6 - Prob. 13ECh. 12.6 - Prob. 14ECh. 12.6 - Prob. 15ECh. 12.6 - Prob. 16ECh. 12.6 - Prob. 17ECh. 12.6 - Prob. 18ECh. 12.6 - Prob. 19ECh. 12.6 - Prob. 20ECh. 12.6 - Prob. 21ECh. 12.6 - Prob. 22ECh. 12.6 - Prob. 23ECh. 12.6 - Prob. 24ECh. 12.6 - Prob. 25ECh. 12.6 - Prob. 26ECh. 12.6 - Prob. 27ECh. 12.6 - Prob. 28ECh. 12.6 - Prob. 29ECh. 12.6 - Prob. 30ECh. 12.6 - Prob. 31ECh. 12.6 - Prob. 32ECh. 12.6 - Prob. 33ECh. 12.6 - Prob. 34ECh. 12.6 - Prob. 35ECh. 12.6 - Prob. 36ECh. 12.6 - Prob. 37ECh. 12.6 - Prob. 38ECh. 12.6 - Prob. 39ECh. 12.6 - Prob. 40ECh. 12.6 - Prob. 41ECh. 12.6 - Prob. 42ECh. 12.6 - Prob. 43ECh. 12.6 - Prob. 44ECh. 12.6 - Prob. 45ECh. 12.6 - Prob. 46ECh. 12.6 - Prob. 47ECh. 12.6 - Prob. 48ECh. 12.6 - Prob. 49ECh. 12.6 - Prob. 50ECh. 12.6 - Prob. 51ECh. 12.6 - Prob. 52ECh. 12.6 - Prob. 53ECh. 12.6 - Prob. 54ECh. 12.6 - Difference in Volumes of Cubes The volume of a...Ch. 12.6 - 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(a)...Ch. 12 - The first term of a geometric sequence is 25, and...Ch. 12 - The first term of an arithmetic sequence is 10,...Ch. 12 - Prob. 7TCh. 12 - Write the expression without using sigma notation,...Ch. 12 - Prob. 9TCh. 12 - Prob. 11TCh. 12 - Prob. 12TCh. 12 - A puppy weighs 0.85 lb at birth, and each week he...Ch. 12 - Prob. 1PCh. 12 - Fitness Program Sheila decides to embark on a...Ch. 12 - Monthly Savings Program Alice opens a savings...Ch. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9P
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