Answered: 4. The future value of a P20,000…

4. The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter1: Understanding Personal Finance

Section1.4: Perform Time Value Of Money Calculations

Problem 3CC

See similar textbooks

Related questions

Q: The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: 10. The present value of an annuity is 16,950. Quarterly payments of 369 are made from 16,950 that…

A: Present value = 16950 Quarterly payment = 369 Annual interest rate = 4% Quarterly interest rate =…

Q: Determine the present value of an Annuity Php 1,000.00 for 25 quarterly installment that will start…

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

Q: 1. Find the present value and the amount of an ordinary annuity of Php 5,000 payable semi annually…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Find the present value of each ordinary annuity. Payments of $1400 are made semiannually for 8 years…

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

Q: Calculate the future value of an annuity of PhP 10,440 invested every year at 10.9% compounded…

A: Annuity Amount = 10,440 Quarterly Compounding, Interest Rate = 10.9%/4 = 2.725% per quarter Time…

Q: Find the present worth of perpetuity of Php10,000 semi annually with an interest rate of 10%…

A: Solution Given Semiannual annuity 10000 Interest rate 10% quarterly First payment…

Q: In a sequence of 10 annual payments of P2,000 each, the first one is due at the end of 6 years. Find…

A: Calculation of Present Value of Annuity Year end Payment Present value factor at 6% Present…

Q: Find the present value of the following annuities: 1. 100 payable every month for 10 years if the…

A: Present value is referred as the current value of future sum of funds or the cash streams that are…

Q: P1,500 is invested every 4 months at 3.8% per annum compounded quarterly. How much will the annuity…

A: The Compound Interest of an investment is used for a longer period of time. In the compound…

Q: The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the…

A: The future value of annuity due is the value of the series of payments in the future time period on…

Q: Find the present value of a deferred annuity of P760 every six months for 5 years that is deferred 3…

A: When stream of cash flows or annuities are expected to be received or paid over a later date, it is…

Q: Find the amount and present value of the annuity of P270 payable every end of the month at 9%…

A: The present value is the worth of the money to be received in future at today's time. It indicates…

Q: Assume that you deposited RM5,000 at the end of each year for 3 consecutive years in an account that…

A: The future value of annuity can be calculated with the annuity equation.

Q: find the present worth of a perpetuity of p25000 payable quarterly if money is worth 5% compounded…

A: Perpetuity refers to series of equalized payments that are made either at start or end of definite…

Q: The future value of an ordinary annuity of Php 1,000 each year for 10 years, deposited at 3 percent,…

A: In the given question we require to calculate the future value of annuity from following details:…

Q: Find the present value of deferred annuity of P 900 every 3 months for 5 years that is deferred 3…

A: Deferred annuity is a series of payments which starts after a certain period of time called…

Q: Find the present value of an annuity of P30,000 payable annually for 10 years, with the first…

A: An annuity is a contract where, in exchange for a lump sum amount, a fixed amount is paid for a set…

Q: Find the present value of an annuity P20,000 payable annually for 8 years, with the first payment at…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. Present…

Q: c. Find the present value of a deferred annuity of P8,000 every end of the month for 3 years that is…

Q: 2. Find the present value, in pesos, of an annuity of P20,000 payable annually for 8 years, with the…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: Assume that you deposited RM5,000 at the end of each year for 3 consecutive years in an account that…

A: Annual deposit = RM 5,000 Number of annual deposit = 3 Interest rate = 10% Semi annual interest rate…

Q: An annuity of P41,431 is to be paid in 5 years at the rate of 4% compounded continuously. What is…

A: Given Data: Principal = 41,431 Time = 5 years Rate = 4%

Q: Find the present value of a deferred annuity of P4,800 every six months for 7 years, if the first…

A: Six months payment =4800 Period =7 years =14 semiannual interest rate =5.5% semiannual interest…

Q: C- What must YOU invest today to receive an annuity of $4,500 for 10 years compounded at 8%…

A: Here, present value of a quarterly annuity needs to be determined. Annuity “PMT” of $4500 every…

Q: ind the present value of a perpetuity starting at time 10 paying 100 nnually if the interest rate is…

A: A perpetuity is an annuity that goes on forever. In other words a perpetuity, as the name indicates,…

Q: Calculate the present value of a P20,000 annuity paying yearly for eight years, with the first…

A: Annual payment (A) = P 20000 n = 8 years r = 5%

Q: 9. Assume you are planning to invest OMR5,000 each year for six years and will earn 10 percent per…

A: Ordinary annuities are the payments (PMTs) which are made at the end of the period.

Q: Find the present value of an annuity P10,000 payable at the en quarter for 5 years if the rate of…

A: Present value of annuity can be found from the present value factor and annuity payment.

Q: Find the future value of an annuity due of $100 each quarter for 2 1/2 years at 12% compounded…

A: Formula: FV = { P [ ( 1 + r )N - 1 ] / R } ( 1 + r ) P = Principal value R = Interest.

Q: 1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6…

A: Using excel PV function

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

A: 1 2 FUTURE VALUE 1552.9 1552.9 DISCOUNT RATE 12% 6% YEARS 10 10 PMT 0 0 ANNUALLY…

Q: Determine the present value of an annuity of $600 paid monthly for a period of 15 years at 4.50% APR…

A: To calculate the present value we will use the below formula Present value = P*[1-(1+r)-n]/r Where…

Q: Find the present value of an annuity of P30,000 payable annually for 10 years, with the first…

A: Present value of an annuity referred as the amount of money required today to make a series of fund…

Q: 2. Find the accumulated amount of the ordinary annuity paying an amortization of P1,000 per month at…

A: The accumulated amount can be calculated as the future value of annuity

Q: What is the present value of a S1,000 annuity tor 10 years, with the lirst payment occurring at the…

A: Payments occurring at the end of year means its a ordinary annuity.

Q: 1.) Calculate the future value of an ordinary annuity of which periodic deposit is Php 8,600 at 8%…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: 5. At the end of each quarter, $4, 000 is placed in an annuity that earns 6%interest, compounded…

A: In the given question $ 4,000 is deposited quarterly and the compounded is being done quarterly.…

Q: Determine the present and future value of an ordinary annuity for 80,000 pesos with 3% compounded…

Q: Find the present value of an annuity of P2,500 for 22 years and 9 months at 12% compounded…

A: Quarterly payment (P) = P 2500 Period = 22 Years and 9 Months Number of quarterly payments (n) = 91…

Q: 5. Determine the accumulated amount of an annuity consisting of 6 payments of P120, 000 each, the…

A: Annuity Amount (PMT) is P120,000 No. of Payments (n) is 6 Interest Rate (r) is 15% Annuity Type is…

Q: The annual amount of a series of payments to be made at the end of the next twelve years is P500.…

A: Answered:

Q: Find the present value of a 10 years annuity -immediate with annual payment of Ghs1200 at an…

A: Series of payment made at equal interval is called Annuity.

Q: Find the present worth of perpetuity of P 10,000 semi annually with an interest rate of 10%…

A: In this question, the first semi-annual payment will be given after 5 years. First, the present…

Q: 1. Find the present value of a perpetuity of P15,000 payable semi- annually if money is worth 8%…

A: Answer- Perpetual Semi Annual Payments = 15,000 Interest Rate = 8% Compounded Quarterly Number of…

Q: Find the present value of an annuity of P 30,000 payable annually for 10 years

A: Present Value of Annuity: It is the present worth of the future annual cash flow stream and is…

Q: 1. Find the present and future value of an ordinary annuity of Php5,000 payable semi-annually for 10…

A: 1) Annuity amount (A) = Php 5000 semiannually r = 6% per annum = 3% semiannually n = 10 years = 20…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

4.
The future value of a P20,000
annuity due deposited at 8 percent
compounded annually for each of the
next 10 years is

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits?
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 annuity
Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?
Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of 5,000 at the end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of 1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of 1 at 15% for 5 periods is 6.74. The present value of 1 at 15% for 5 periods is 0.5. How much should Electro record as the cost of the machine? a. 12,500 b. 16,750 c. 25,000 d. 33,700
If 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?
Present Value of an Annuity Ralph Benke wants to make 8 equal semiannual withdrawals of 8,000 from a fund that will earn interest at 11 % compounded semiannually. Required: How much would Ralph have to invest on: 1. January 1, 2019, if the first withdrawal is made on July 1, 2019 2. July 1, 2019, if the first withdrawal is made on July 1, 2019 3. January 1, 2019, if the first withdrawal is made on January 1, 2022