A perpetuity-due with annual payments of 100 has a duration of 26.88 years at an annual effective rate of interest i. Calculate the duration of this perpetuity if the annual effective rate of interest is i +1% instead of i. A) 21.19 B) 22.63 C) 24.95 D) 27.93 E) 28.3)
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: 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: What is the present value of an annuity of 19 annual payments where the first payment is in twelve…
A: N = 19 First payment in twelve years Annuity Payment = 1200 Assumption: Interest Rate = 14%
Q: What is the future value of a series of $4,500 annual payments received at the end of each of the…
A: Future value is the value of an asset which grows to some new value. Annuity due means the payment…
Q: Find the present value of an annuity if $2,200.00 is paid to you at the end of every 2 months for 3…
A: Present value is the current worth of future payments to be received from the investment. Formulas:…
Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…
A: Rate of return is the return earned on an investment. It is always expressed in percentages. Rate of…
Q: A 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments…
A: First payment = $ 1000 Next 5 payments = $ 1000 Growth rate in payments after 6 payments = 5.06%…
Q: The future value is $
A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n - 1) /interest…
Q: A loan $30.000 is to be amortized by equal payments at the end of each year for five years. The…
A: Given information: Present value of loan is $30,000 Number of years 5, Interest rate is 6% per…
Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment R,…
A: The quarterly payment is $750. The annual rate of return is 5.1%. The maturity is five years.…
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: 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: What is the period of deferral in the deferred annuity?
A: Deferred annuity refers to the annuity payments beginning in the future agreed date i.e. after an…
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: Find i (the rate per period) and n (the number of periods) for the following annuity. Annual…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i…
A: Answer Annuity formula PV = C / R Where: PV = Present value C = Amount of continuous cash payment r…
Q: Consider a perpetuity that pays 100 at the end of each year for the first 10 years and 50 at the end…
A: Perpetuity is series of cash flows which happens at a periodic interval till perpetuity
Q: Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise…
A: PMT=7500 Semi annual : interest = 7%/2= 3% n= 3*2= 6
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: if $875 000 is saved for retirement, what rate of interest, compounded semi-annually, will provide…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: Find i (the rate per period) and n (the number of periods) for the following annuity Semiannual…
A: Given years =11 rate = 6.8%
Q: An annual annuity-immediate pays $2000 at the end of the first year. The last payment is at the end…
A: The present value is the present worth of the amount that will be paid or received at future.
Q: Determine the discounted value of an ordinary annuity deferred 9 years paying $2381 semi-annually…
A: Deferred annuity is a concept of time value of moeny in which the payments starts after a short…
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: certain annuity pays 80.00 at the end of every 3
A: The nominal rate can be computed as follows :
Q: 9) A retirement gratuity of $123 900.00 is invested in annuity deferred for 10 years. The annuity…
A: The present value of an annuity is the current worth of a cash flow paid/received at the begging of…
Q: An annuity provides for 30 annual payments. The first payment of $100 is made immediately and the…
A: Present value of growing annuity is the stream of cash flows that keeps growing at a specified rate…
Q: Consider an annual annuity composed by 10 payments equal to 125 € in the first 3 years and 150 € in…
A: Annuity is defined as a regular payment made at fixed interval. In this case an annuity of 125 € is…
Q: An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i…
A: PRESENT VALUE OF PERPETUITY FORMULA: present value =periodic cashflowinterest rate per period
Q: You Find the present value of the following annuity: An amount of $15,806 is paid quarterly for 3…
A: The provided information are: PMT = $15806 NPER = 3 Rate = 6.80%
Q: In a series of semiannual payments of P2,500 each the first payment is due at the end of 4 years and…
A: The regular or lump-sum amount that is received or paid after a specific time period rather than…
Q: A 20-year annuity X has annual payments of $10,000 at the beginning of each year for 10 years, then…
A: A series of payment made at equal interval is called Annuity.
Q: Find the period of deferral in each of the following deferred annuity problem. 1. A regular payment…
A: A deferral period is a period in which the borrower does not have to pay the amount including…
Q: The present value of an annuity is payable annually for 2 years, with the first payment at the end…
A: Value of an annuity refers to nominal worth for each payment. It implies for amount at which annuity…
Q: perpetuity paying 1.000$ 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 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: Find the future value of an annuity in 16 years if you deposit $110 at the end of each compounding…
A: Solution: Future value of an annuity is the total value of annuity payments at a specific point in…
Q: An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year.…
A: Annual payment (P) = 8 Number of payments (N) = 5 Interest rate (R) = 7%
Q: 2. This graph shows interest earned by an annuity that pays $17 000 at the end of each for time…
A: Using excel FV function
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: Given: Interest rate = 12% Semi-annual payments = $1000 Number of years = 3 Number of payments = 3*2…
Q: A 5-year annuity-due has semiannual payments with the first payment starting two years from now. The…
A: First semi annual payment = 800 Decrease in each payment = 50 Interest rate = 8% Semi annual…
Q: What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year?…
A: End of Year payments =850 Nominal interest rate = 8% Present value of perpetuity=Equal cash flow…
Q: Find the future value of each annuity due. Then determine how much of this value is from…
A: Annuity Due occurs when stream of payments starts from current date and because of which, each…
Q: 1. The present value of an annuity of P5,000 to be received at the end of each of the next six…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: What is the accumulated amount of a 9-year annuity paying P 1,075at the end of each year, with…
A: Using Excel FV function
Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…
A: Net present value is defined as the discounted cash flow technique which applies to weight the items…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposit. M= $200 N=annually R=9% T=20 Answer choices: A.) 10,232.02 B.) 133,577.37 C.)11,258.31 D.)11,610.43 E.)9,664.34At an annual effective interest rate of i, i > 0%, the present value of a perpetuity paying 10 at the end of each 3-year period, with the first payment at the end of year 6, is 32. At the same annual effective rate of i, the present value of a perpetuity-immediate paying 1 at the end of each 4-month period is X. Calculate X. a. 40.8 b. 39.8 41.8 d. 42.8 38.8 C. e.9. Examine the time line for Now the annuity shown. 250 (1.015) 250 (1.015) 250 (1.015) E 250 (1.015)23 250 (1.015) a) What is the duration of this annuity? How can you tell? b) Determine the annual rate of interest and the number of compounding periods per year. c) Determine the present value of this annuity. d) Determine the total interest earned. ANSWER 9. a) 6 years b) 6%; 4 compounding periods per year c) $5007.60 d) $992.40 Time (3-month periods) 1 2 250 250 250 250 250 3 23 24 H-H
- Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated. 6) R = $100, i = 4% interest compounded annually for 10 yearsAt an annual effective rate of interest i = 2%, find the AV of a 22-year annuity immediate with annual payments such that the first payment is 62, and each payment thereafter decreases by 1. Possible Answers A 1227.59 B 1267.25 C 1397.58 D 1407.51 E 1427.59Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. 7) $8000; quarterly payments for 8 years; interest rate 4.1%.
- 16.Find i (the rate per period) and n (the number of periods) for the following annuity. Monthly deposits of $345 are made for 7 years into an annuity that pays 7% compounded monthly. i= n= I resubmit mi question, but the notes its complete...How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.48The present value of a perpetuity paying 11 at the end of every 4 years is 0.82. Find the annual effective rate of interest i. A. 5.51% B. 22.06% C. 33.09% D. 31.51% E. 8.82%
- 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…17. Determine the periodic payment for the following deferred annuity. The annuity is an ordinary annuity following the period of deferral. Interest rate Compounding Term Present value (%) frequency (years) (S) Quarterly Deferral Payment period interval (months) 1 27 months 6.4 20 50,000.00