A 10-year annuity pays P900 four times in year. The first P900 will be paid five years from now. If the stated interest rate is eight percent, discounted quarterly, what is the present value of this annuity?

Q: The present value of an annuity is payable annually for 2 years, with the first payment at the end…

A: Annuity is payable for 2 years First payment at end of 10 years = 38,421 Payment at end of 11 years…

Q: Acme Annuities recently offered an annuity that pays 4.5% compounded monthly. What equal monthly…

A: Annuities are financial products that are sold by the financial institutions (like insurance…

Q: An ordinary annuity pays 7.08% compounded monthly. (A) A person deposits $150 monthly for 30 years…

A: Interest rate is 7.08% Compounded monthly Part-(A)  Deposits per month is $150 Time period of…

Q: What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?

A: Details given are : Annual cashflow = $300 time period = 5 years Interest rate = 8% We require to…

Q: What's the present value of a $500 annuity payment over four years if interest rates are 8 percent?

A: Given: Annuity payment (P) : $500 Interest rate (Annual) (r) : 8% Time period (n) : 4 years

Q: How much interest is included in the future value of an ordinary simple annuity of $1,650 paid every…

A: The question can be solved as follows:

Q: A ten-year annuity has an interest rate of 12% with individual cash flows of $150 at every end of…

A: Time period = 10 years  Interest rate = 12%  Cash flows = $150

Q: Suppose that an annuity will provide for 20 annual payments of 1240 dollars, with the first payment…

A: Total number of payments "N" is 20 Annual payments "PMT" is $1,240 Interest rate is 8.8% convertible…

Q: If you want to be paid from a 14 year ordinary annuity with a guaranteed rate of 2.208% compounded…

A: In finance, the term annuity represents a sequence of cash flows that contain a fixed payment at…

Q: What is the present value of the annuity if it is paid over three years (starting immediately)?

A: For the first year, payment = $15,000 For second year = $15,000 x 0.970 = $14,550 For third year =…

Q: What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: PNC's 30-year annuity is scheduled to pay off a loan taken out today at a 5% annual effective…

A: given, year (n) = 30 rate = 5% first annuity at t=10, amount= $10,000 then annuity increase by $5000…

Q: A 16-year annuity pays $1,900 per month, and payments are made at the end of each month. The…

A: The question is based on the concept of present value of future annuity payments . Annuity payments…

Q: What is the present value of a four-period annuity of $200 per year that begins two years from today…

A: Annual annuity amount = $200 Time Period = 4 years Discount Rate = 9%

Q: What is the present value of a $775 annuity payment over six years if interest rates are 11 percent?

A: In this question we need to compute the present value of annuity payment from below details: Annuity…

Q: If the present value of an ordinary, six-year annuity is $8,500 and the interest rates are 9.5…

A: Given: Resent value of Ordinary Annuity = $8500 Interest Rate = 9.5% Time =6 years So, the value of…

Q: What is the present value of a $90 annual annuity for 10 years with an additional $1000 received at…

A: Solution:- When an equal amount is paid each period, it is called annuity. The terminal value…

Q: You expect to make equal payments of $3460.00 at the end of each semi-annual period over the next 3…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: if money is worth 8% compounded quarterly, what is the present and future value of an ordinary…

A: The present and future value can be computed with the help of annuity function

Q: A one-year annuity that pays $100 semi-annually will starts its payment in 6 months from now. APR is…

A: Present Value of  Ordinary Annuity refers to the concept which dictates the discounted value of a…

Q: A 5-year $100 ordinary annuity has an annual interest rate of 10%. What is its present value?

A: Present value of annuity is the equivalent value of all the cash flows which will be incurred at…

Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…

A: Required :The discounted value of these cash flows.

Q: Suppose that an annuity will provide for 20 annual payments of 1440 dollars, with the first payment…

A: Total number of annual payments is 20 Annual payments $1440 First payment coming in 11 years from…

Q: Acme Annuities recently offered an annuity that pays 4.2% compounded monthly. What equal monthly…

A: given information  interest rate = 4.2 = 4.2100 = 0.042   monthly rate = 0.04212 = 0.0035  future…

Q: What is the present value of an ordinary annuity of 2,200 per year for 15 years discounted back to…

A: The present value function or concept can be used to determine the present value of a future sum or…

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: Acme Annuities recently offered an annuity that pays 3.6% compounded monthly. What equal monthly…

A: Each period payment is considered as PMT.

Q: An annuity with a cash value of ​$12,000 pays ​$880 at the beginning of every three months. The…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: What is the present value of a $700 annuity payment over six years if interest rates are 10 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

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: A. What is the value of the annuity 5 years from now? B. What is the current value of the annuity?

A: Solution:- Given, A 5-year annuity of ten = $50,000 semi annul payments  Begin 9 years from now,…

Q: An annuity that pays $12,500 a year at an annual interest rate of 5.45 percent costs $150,000 today.…

A: Given Annuity = $12,500 Interest rate = 5.45% Present value of annuity = $150,000 Time period = ?

Q: A 20-year annuity of forty $11,000 semiannual payments will begin 10 years from now, with the first…

A: Nominal Interest rate = ((1 + real rate / 12)^6 -1)*2 = (( 1 +14%/12)^6 - 1)*2 = 0.1441474102…

Q: An annuity pays $1000 at the end of each year for 5 years and then $2000 at the end of each year for…

A: The discounted value is present value of future cash receipts

Q: An annuity that pays $13,000 a year at an annual interest rate of 4.42 percent costs $140,000 today.…

A: Annual payment (P) = $13000 Interest rate (r) = 4.42% Present value (PV) = $140,000 Period = n

Q: Handwritten: An 11-year annuity pays $1,800 per month, and payments are made at the end of each…

A:

Q: What is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8…

A: Given details are: Annuity payment (PMT) = $1000 Time period (n) = 4 years Interest rate (I/Y) = 8%…

Q: For an ordinary annuity with a five annual payments of $100 and a 10% interest rate, how many years…

A: Ordinary Annuity involves fixed and equal annual payments at the end of consecutive periods over a…

Q: What is the present value of an ordinary annuity of $400 each month for eight years, assuming an…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

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: A 10%, 4-year annuity pays $500.00 each year. What is the future value of the annuity?

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

Q: Acme Annuities recently offered an annuity that pays 6.0% compounded monthly. What equal monthly…

A: The future value of the annuity is the future worth of a series of cash flows at a certain rate of…

Q: A 10-year annuity of twenty $10,000 semiannual payments will begin 12 years from now, with the first…

A: Semiannual payment (A) = $10000 Annuity duration (n) = 10 years = 20 periods First payment (CF)…

Q: You expect to make equal payments of $ 9020.00 at the end of each of the next 6 years (ordinary…

A: Future value of ordinary annuity = Annual payment x [(1 + i)n - 1]/i