A company wants to have $40,000 at the beginning of each 6-month period for the next 4 1/2 years . If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.93%, compounded semiannually?

Q: An ordinary annuity pays 7.92​% compounded monthly.   ​(A) A person deposits ​$150 monthly for 30…

A: Given:

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: An annuity is a type of financial product offered by insurance companies and financial institutions.…

Q: A personal account earmarked as a retirement supplement contains $242,100. Suppose $200,000 is used…

A: Annuity is the regular deposit of payments in saving account, for mortgage payments, for insurance…

Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: Annual receipt (C) = P 35,000 Number of annual receipts (n) = 18 Interest rate (r) = 3%

Q: A personal account earmarked as a retirement supplement contains $242,400. Suppose $200,000 is used…

A: You have asked multiple unrelated questions. They are not sub parts. Hence, only the first question…

Q: A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used…

A: Annuity refers to the series of payment in equal interval of time for certain time period.  For…

Q: A 10-year annuity pays $1,725 per month, and payments are made at the end of each month. The…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an…

A: given, ordinary annuity: A=p 1811 n =15 r=10%

Q: How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter…

A: Perpetuity annuity involves sequence of infinite cash flows which do not have any end period. It is…

Q: An annuity contract provides for the payment of P2,200 at the end of every month for 10 years. Money…

A: Future value of an annuity- is the value of a group of recurring payments at a certain date in the…

Q: The present value of an annuity is 16,950. Quarterly payments of 369 are made from16,950 that is…

A: Present value (PV) = 16950 Quarterly payment (P) = 369 Annual interest rate = 4% Quarterly interest…

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

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

A: We use PMT function in financial calculator or excel to solve monthly payments

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: Calculation of the number of quarters until the balance of the account is $0 is as follows: Hence,…

Q: If for the next 30 years you place OMR 3,610 in equal annual year-end-deposits into an account…

A: Future value of annual year end deposits is calculated by future value of ordinary annuity formula.…

Q: An annuity with a cash value of $15,500 earns 7 % compounded semi-annually. End-of-period…

A:

Q: purchased for $185,000 pays $5,000 at the end of every quarter. How long will the payments continue…

A: Present value of annuity is amount of equivalent value today that will equivalent to future value of…

Q: A 30-year annuity is arranged to pay off a loan taken out today at a 5% annual effective interest…

A:

Q: if P20,879 is deposited each year for 8 years at an interest rate of 10.257% compounded bi-monthly,…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: The BBB Corporation, a small plastic toy manufacturer, wants to determine the present value of an…

A: The formula of present value of the annuity identifies 3 variables, .i.e., the interest rate, cash…

Q: If the insurance plan where the insurance firm promises to make yearly payments of 200,000 pesos…

A: Annual payment = 200,000 pesos Interest rate = 6% Period from 11th year to 15th year = 5 Periods

Q: An annuity purchased for $195,000 pays $6,000 at the end of every quarter. How long will the…

A: The term "annuity" refers to an insurance contract created and distributed by financial institutions…

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: An annuity is a financial term that depicts a stream of cash flows of an equivalent periodic amount…

Q: A 25-year annuity was purchased with $225,000 that had accumulated in a RRSP.  The annuity provides…

A: DefinitionRRSP:  A Registered Retirement Saving Plan is an investment cum retirement saving plan for…

Q: How long will it be until the account balance is $0?

A: Information Provided: Retirement Supplement = $342,000 Amount used to establish annuity = $300,000…

Q: If you have a 13-year annuity paying $209 quarterly beginning in 6 years when interest is 3.13%…

A: First payment takes place in the beginning of 6th year. The payments are made quarterly.

Q: A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used…

A: We use NPER function to calculate no of quarters

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: Let the required annuity be = n quarters To make the account 0 at the end of the annuity period, the…

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: An ordinary annuity pays 8.28% compounded monthly. (A) A person deposits $100 monthly for 30 years…

A: Annuity means regular periodic payments. An ordinary annuity is for periodic payment that takes…

Q: perpetuity paying 1.000$ at the end of each month is replaced with an annuity paying X$ each month…

A: In this we have to calculate monthly rate from that we can get all values.

Q: What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be…

A: As a fist step, let's shifts ourselves to the end of t  = 10 years.Annuity, A = $ 2,500; n = number…

Q: What is the accumulated value after five years of payments of $20000 made at the beginning of each…

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

Q: An annuity with a cash value of $14,000 earns 7% compounded semi-annually. End-of-period semi-annual…

A: An annuity is defined as the fixed payment made at the beginning or the end of the period for a…

Q: Lidia deposits $800 at the END of each year for 8 years in a savings account. The account pays 12%…

A: Future value is the value of an asset in the future over the years. It can be calculated as…

Q: An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the…

A: Compounding refers to the process where the interest is determined on the principal and interest…

Q: A personal account earmarked as a retirement supplement contains $342,400. Suppose $300,000 is used…

A: Given data; annuity = $300,000 interest rate = 6% compounded quarterly payment amount = $6500…

Q: If $312745 is used to purchase an annuity earning 5% compounded monthly and paying $3206 at the end…

A: An annuity is a series of payments, either coming to you or made by you, these have a fixed value in…

Q: What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment…

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

Q: 1. What is the present worth of a P1000 annuity starting at the end of the third year and continuing…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Dobsen Door Manufacturer s sets up sinking fund to raise $75000 to pay off the maturity value of a…

A: Sinking fund can be defined as a fund which help an investor to accumulate a targeted amount of fund…

Q: If you have a 13-year annuity paying $305 quarterly in 5 years when interest is 3.25% compounded…

A: Time Period = 13 Years  Monthly Payment made at beginning = $305 Payment started in 5 years…

Q: Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $81,000…

A: To determine the monthly interest on the annuity: Lump sum payment = $81,000 Annuity = $625 Period =…

Q: Recently, More Money 4U offered an annuity that pays 5.4 % compounded monthly. If $1,634 is…

A: Computation of future value and interest earned:

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

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

Q: If P44,873 is deposited each year for 6 years at an interest rate of 14.225% compounded semi…

A: Here we will use the concept of time value of money. The concept of time value of money states that…

Q: A personal account earmarked as a retirement supplement contains $342,200. Suppose $300,000 is used…

A: Given data; Payment amount = $5500 annuity amount = $300,000 annual interest rate = 5%   As the…

Q: If $82,000 is invested in an annuity that earns 5.3%, compounded quarterly, what payments will it…

A: The question gives the following information: Present value=$82,000Rate=5.3%Time period=4.5 years