4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?

Q: A son will receive 3,000 pesos at the beginning of each 3 months for 4 years. What is the present…

A: Present value of annuity due is the present value of the all periodic streams of cash flow that…

Q: Adam purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Semi Annual Payment  $              1,500.00 Time Period (years) 8 Interest rate 4% Monthly…

Q: If the Alfa Life Insurance Co. will pay you and your heirs $1 at the beginning of each year forever,…

A: In this question we need to calculate the Present value of perpetuity i.e. amount you will pay for…

Q: Wally and Paolo are bestfriends. Wally desires Paolo to receive 200000 in twelve years. What should…

A: We need to use future value  formula to calculate the amount to be invested today. PV =FV(1+r)n…

Q: Janice and Terry Van Dyke have decided to establish a quarterly ordinary annuity of $8,000 for the…

A: Ordinary annuity refers to the periodic series of payments that an investor makes into an investment…

Q: Question 4# Maryam will receive the following payments at the end of the next four years: AED…

A: Present Value is the current value of all the future sum of money. This amount is discounted using…

Q: Laura purchases a retirement annuity that will pay her $2,500 at the end of every six months for the…

A: Present value of annuities will be the equivalent value of future cash flow to be received in the…

Q: Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: A relative wills you an annuity paying $1000 per quarter for the next 4 years. If money is worth 12%…

A: An annuity is a financial arrangement that involves a series of fixed payments at equal time…

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1-year old daughter starting…

A: Present worth will be the difference between total present worth of cash inflows and total present…

Q: Hamad will receive the following payments at the end of the next three years: AED 40,000, AED…

A: Given: Year 1 cash flows = AED 40,000 Year 2 cash flows = AED 50,000 Year 3 cash flows = AED 65,000…

Q: Your aunt promises to gift you $1,500 now, $1,700 one year from now, $1,900 two years from now, and…

A: The future value is reflective of the value of cash flows in the future after compounding them using…

Q: Bridget Jones has a contract in which she will receive the following payments for the next five…

A: Discount rate = 11%

Q: A son will receive 3000 pesos at the beginning of each 3 months for 4 years. What is the sum of this…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average eaming…

A: Given, A=$9900 r=11% n=40 years

Q: Jami Minard wants to receive an annuity of $8,000 at the beginning of each year for the next 10…

A: Annuity refers to a contract between an individual and an insurance company under which a desired…

Q: Blushing Rose invests $1,000 into her Roth IRA. She can increase thisinvestment annually by $1,000…

A: The computation is as follows:

Q: Anna purchases a retirement annuity that will pay her $2,000 at the end of every six months for the…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: A father wishes to bequeath to this daughter 20,000 ten years from now. If he invest an amount…

A: Time value of money is a concept that states that the worth of a certain amount of money today is…

Q: Kenneth decides to put away an amount of R400,00 for 15 years, at the end of every month, towards a…

A: The present value of the annuity can be calculated using PV Function in excel. PV (rate, nper, pmt,…

Q: An investor desires to deposit with a trust company a sum just sufficient to provide his family with…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Mary is going to recieve a 36-year annuity of $9,100. Nancy is going to recieve a prepetuity of…

A: Present value is the current value of the future payment at a given rate of return. Given: Years =…

Q: You are going to receive a payment at the end of each year for the next 12 years. If you invest each…

A: The future Value of an investment is an estimation of receiving some amount after some period of…

Q: Bill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of the next…

A: solution Bill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of…

Q: Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per…

A: Using excel PV function

Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?

A: Concept: The interest is the product of principal, time period and number of years that is divided…

Q: Timmie wishes his son Timmeus to receive P203B ten years from now. What amount should he invest if…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Linda expects to receive P35,569.22 , 9 years from now. How much should she invests for three…

A: Annuity is the series of payment made by an investor over the period of time to accumulate future…

Q: IRA Anne Wright decides to invest $4000 in an IRACD at the end of each year for 10 years. If she…

A: Future value (FV) is the term which is described as the value of the current asset at the future…

Q: I and Mrs. Dafoe are doing some estimates of the amount of funds they purchase an annuity paying…

A: Present value of monthly annuity would be the amount required to purchase the annuity considering…

Q: save for her newborn son S college education, the beginning of each year for the next 18 years. The…

A: Please refer to the image belowp

Q: 4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent…

A: Introduction: The present value of annuity due refers to the current value of a series of future…

Q: A father wishes to provide his daughter the amount of ₱1M twelve years from now. How much should he…

A: The given question can be solved using PV function in excel. PV function computes current balance in…

Q: 4) Dottie has decided to set up an account that will pay her granddaughter $5,000 a year…

A: Present Value of perpetuity is sum of all present values discounted at required rate of return.…

Q: A real estate investor feels that the cash flow from a property will enable her to pay a lender…

A: This is the problem of the time value of money wherein the interest rate is mentioned and gets…

Q: Sally has a sum of $19000 that she invests at 7% compounded monthly. What equal monthly payments can…

A: Present value (P0) = $19000 Monthly interest rate (r) = 0.00583333333333333 (i.e. 0.07 / 12) Monthly…

Q: c. Nancy wants to contribute $8,000 at the end of each year into a 5 401(k) plan for 20 years with…

A: Introduction: The term annuity refers to a series of payments that are made regularly. There are two…

Q: Can you help me work out this problem in detail?   Ben wants to receive $6,000 a year for 10 years.…

A:

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at…

A: Period of first payment from now = 7 Years (i.e. 8-1 = 7 Years of age) Number of annual allowance =…

Q: Jami Minard wants to receive an annuity of $5,000 at the beginning of each year for the next 10…

A: Using the present value function in excel

Q: Christina will receive a 5-year annuity of $1,200 a year, with the first payment occurring at Date…

A: Working note:

Q: Stephanie purchases a retirement annuity that will pay her $3,000 at the end of every six months for…

A: formula for annuity PVA=A×1-11+rmn×mrm where, r=rate of interest m =frequency of compounding A=…

Q: Suppose Brianna invests $1300 each year for 5 years, in annuity that pays 6% annual interest,…

A: Future value of annuity  = P * [ (1+r)^n  - 1 ] /r  Where, P = 1300 r = 6% n = 5 years

Q: Gustav desires to deposit with a Trust Company a sum just sufficient to provide his family with an…

A: The Trust need to pay $600 per month for twenty four year, so the individual need to deposit…

Q: Jeff has the opportunity to receive lump-sum payments either now or in the future. Which of the…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Bob purchases an annuity that will pay him $10,000 a year for the next 15 years starting a year from…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next…

A: Solution:- When an equal amount is paid each period at the end of period, it is called ordinary…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.