8. Ordinary annuity payment. Fill in the missing annuity values in the following table for an ordinary annuity stream. Number of Annual Payments or Years Interest Rate Future Value Annuity Present Value 9% $ 25,000.00 20 8% $25,000.00 30 7% $200,000.00 10 4% $ 96,048.86 0.

8. Ordinary annuity payment. Fill in the missing annuity values in the following table for an ordinary annuity stream. Number of Annual Payments or Years Interest Rate Future Value Annuity Present Value 9% $ 25,000.00 20 8% $25,000.00 30 7% $200,000.00 10 4% $ 96,048.86 0.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 20E

See similar textbooks

Related questions

Q: Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) (Do not round…

A: In the given question we need to compute the present value of Annuity. Amount of Annuity = $860 Time…

Q: At an annual effective rate of interest i = 2%, find the AV of a 22-year annuity immediate with…

A: Given Information:PMT is 62 Interest rate is 2% Growth rate is -1% Number of payments is 22

Q: Complete present value of an ordinary annuity: (Round your answer to the nearest cent.) Amount…

A: Present value of annuity (PVA) is the stream of regular interval cashflow discounted at specified…

Q: The PV of an n-year annuity-immediate with quarterly payments of $650 is $18,002.97. Given a nominal…

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

Q: Find the future value and present value using the ordinary annuity and. No. Principal Rate Mode of…

A: 4. Calculate the future value of ordinary annuity (FVA) using the formula. Here, 'P' represents the…

Q: 6. What is the present value of a 7-year ordinary annuity with annual payments of $300, evaluated at…

A: Annual Payment(P) =$300 Interest Rate (r) = 10% = 0.10 Years(n) = 7 Therefore, Present Value of…

Q: If P500 is invested at the end of each year for 6 years at an effective annual interest rate of 7%.…

A: Periodic Payment = P500 Time Period = 6 Years Interest Rate = 7%

Q: 6. What is the present value of a 7-year ordinary annuity with annual payments of $300, evaluated at…

A: Using excel PV function

Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…

A: Future value of an annuity refers to the value of a periodic payment or accumulated amount after…

Q: Present value of an annuity Consider the following cases, Amount of annsity Interest rate Ferind…

A: i) Case A Annuity (PMT) = $12000 Interest rate ( r) = 7% Number of years n) = 3 Using the formula…

Q: Please help me with 9-7 ??‍♀️

A: Excel Spreadsheet:

Q: Use Table 12-2 to calculate the present value (in $) of the annuity due. (Round your answer to the…

A: Present value of annuity due = periodic deposit*Present value of annuity due factor(r, n) Present…

Q: Problem 2 In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8%…

A: Capital recovery factor is annuity of the investment made today over the period of time at the given…

Q: Complete the following for the present value of an ordinary annuity. (Use Table 13.2) (Do not round…

A: Given, Rate=8% per annum4 quarters per year=2% per quarterPeriod=3 years×4 quarters per year=12…

Q: In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded…

A: Capital Recovery Factor is referred as a ratio which gives one an idea about the present value of an…

Q: EXERCISES O Compute for the future galue of annuity given the Fixed Payment (PMT), Interest Rate…

A: Note: It is a case where the number of questions asked is more than one and no specified question is…

Q: Calculate the future value of an annuity, with case A being an ordinary annuity and case B being an…

A: Annuities - Annuities are the agreements and contracts that promise periodic and regular payments or…

Q: If the present value of an ordinary 6 year annuity is $9100 and interest rate is 9.5%. Find the…

A: The provided information are: Present value (PV) = $9100 Rate of interest (r) = 9.5% Number of years…

Q: For each of the following annuities, calculate the annuity payment. (Do not round intermediate…

A: An annuity payment is an amount that is paid at equal intervals. The annuity can be classified into…

Q: Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest…

A: Calculation of annual interest rate with an ordinary annuity: Excel workings:

Q: Solve for the FVA or PVA value of the following annuity DUE s; Payment amt $ 12,000.00 $ 60,000.00…

A: a) Ordinary annuity and annuity due can be calculated using formula and excel. Since, the question…

Q: Fill in the missing present values in the following table for an ordinary annuity. Number of…

A: Present Value of Ordinary Annuity is calculated as: PV = PMT [(1 + r/n)nt - 1] / [(r/n) * (r/1 n-…

Q: A continuous 5-year annuity pays at the rate of e-0.01t-+0.5t dollars per annum at time t (0 <t <…

A: Present value is the value of an asset in today’s time. It tells how much money is worth now.…

Q: We wish to make 6 withdrawals of 1000 each. 1 period Rate = 6% A. Is this an ordinary annuity or…

A: An annuity due is the annuity in which the payment is due for payment at the beginning of the…

Q: Use graphical approximation techniques to answer the question. When would an ordinary annuity…

A: An annuity is a type of contract usually used in the insurance industry. It provides a periodic…

Q: Find the future value for the ordinary annuity with the PMT = $1,600; 1.35% compounded monthly for 6…

A: In order to find the future value be can use this formula as provided or can use excel. Future value…

Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: 3.) Find the present value of an annuity in perpetuity where payments are $1, 000 at the beginning…

A: As per the information:Annuity payment in 1 year, 3 year and so on=$1000Annuity payment in 2 year, 4…

Q: Calculating Annuity Cash Flows For each of the following annuities, calculate the annuity payment.…

A: Annuity cash flows is a cash flow which leads to a same increase or decrease in the cash flows of a…

Q: 1. Find the discounted value of an ordinary simple perpetuity paying S400 a year, if interest is (a)…

A: Answer 1: Information Provided: Simple perpetuity = $400 Interest rate (a) j1 = 8% (b) j1 =…

Q: Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to…

A: Annuity payment = $ 8000 Interest rate = 6% Period = 20 Years PVAF(6%,20 Years) = 11.46992 (As per…

Q: 9. Examine the time line for the annuity shown. 250 (1.015) 250 (1.015) 250 (1.015) 250 (1.015)23…

A: a) Duration of annuity = 6 years In this question annuity for 24 periods of 3 months,…

Q: Consider the data in the following table: Perpetuity Annual amount discount rate A 100,000…

A: In order to compute the present value of a perpetuity, the annual amount is divided by the discount…

Q: Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest…

A: Required: Compute the annual interest rate in each case.

Q: Use the ordinary annuity formula A= p1+ r nnt−1 r n to determine the accumulated amount in the…

A: We need to use future value of ordinary annuity formula to calculate accumulated amount of annuity…

Q: 1. Find the amount of an ordinary anhulty consisting of 24 monthly payments of $150 that earn…

A: We can define ordinary annuity as a type of annuity in which we receive or make the annuity payments…

Q: Find the future value and present value of the annuity due. Principal Rate Mode of Payment Term No.…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Ordinary annuity payment. Fill in the missing annuity in the following table for an ordinary annuity…

A: Annuity is the regular payment received from an investment at a given rate of interest.

Q: Complete the ordinary annuity as an annuity due (future value) for the following: (Please u Table.)…

A: Solution: Future value is the future amount of money invested today at defined growth rate after…

Q: Complete this ordinary annuity: (Round your answer to the nearest cent.) Amount of Payment…

A: Given information: Annuity payment is $700 Time period is 5 year Interest rate is 8%

Q: Individual Assessment 1.a: Simple Ordinary Annuity Directions: Calculate the future value of #1, 2,…

A: Future value includes the deposits made and the interest accumulated and present value includes the…

Q: posit at the end of hat year 3? p5-19 Future value of an annuity For each case in the accompanying…

A: Future Value of Ordinary Annuity is the value of the sum of money in the future date based on a…

Q: A 9.0%, 5-year ordinary annuity pays $270.00 each year. What is the future value of

A: Future value of annuity includes the interest and deposits made and can be calculated from the…

Q: 8. Calculating Annuity Values For each of the following annuities, calculate the future value.…

A: a) Annual payment (A) = $2100 r = 8% n = 10 years

Q: What is the present value of a five period annuity of $3,000 if the interest rate is 12% and the…

A: To calculate the present value, we will discount each cash flow and add the discounted cash flows.…

Question

8. Ordinary annuity payment. Fill in the missing annuity values in the following
table for an ordinary annuity stream.
Number of
Annual
Payments or Years
Interest Rate
Future Value
Annuity
Present Value
9%
$ 25,000.00
20
8%
$25,000.00
30
7%
$200,000.00
10
4%
$ 96,048.86
0.

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

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

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?
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
Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 ? $0.00 $600.00 $2,386.09 18 ? $13,278.73 $354.57 $0.00 40 ? $0.00 $1,872.79 $40,000.00 60 ? $266,564.09 $500.00 $0.00 Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 nothing% (Round to two decimal places.) $0.00 $600.00 $2,386.09 18 nothing% (Round to two decimal places.) $13,278.73 $354.57 $0.00 40 nothing% (Round to two decimal places.) $0.00 $1,872.79 $40,000.00…
2. Consider the data in the following table: Perpetuity Annual amount discount rateA 100,000 10B 3,000 6 Determine the present value of each perpetuity.
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. (i = interest rate, and n = number of years) Present Value Annuity Amount i n1. ? $ 3,000 8% 52. $ 242,980 75,000 ? 43. 161,214 20,000 9 ?4. 500,000 80,518 ? 85. 250,000 ? 10 4 Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $12,000 in student loans. She asks for your help in determining the…
elow is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the present value of $30,000 to be received three years from today, assuming an earnings rate of 6%?