A perpetuity pays $ 100 each year , with the first payment scheduled two years from now . Assume that the effective annual interest rate for the next five years is 8 % , and thereafter it is 5 % . Find the present value of the perpetuity .

Calculate the present value of annuity with 30 annual payments which pays an initial payment of $1,733.35 at the end of 5 years. Each subsequent annual payment is 4% larger than the previous payment. Assume the effective annual interest rate is 0.065. Give your answer to the nearest dollar.

A 20-year annuity X has annual payments of $10,000 at the beginning of each year for 10 years, then annual payments of $20,000 at the beginning of each year for the next 10 years. A perpetuity Y has payments of Q at the end of each year for 10 years, then payments of 2Q at the end of each year thereafter. The present values of X and Y are equal when calculated using an annual effective interest rate of 5%. Find Q.

Use the appropriate formula to find how much you should deposit now at 7% interest, compounded annually, to yield an annuity payment of $1,250 at the BEGINNING of each year, for 15 years.

There is a perpetuity due in which the payments increase by 5 percent per year, and the present value of the 6’th payment is equal to the present value of the 8’th payment. The first payment is 500 dollars. Find both the effective interest rate and the present value.

Find the present value of an ordinary annuity which has payments of $1400 per year for 11 years at 6% compounded annually. The present value is $ (Round to the nearest cent.)

A 5-year annuity-due has semiannual payments with the first payment starting two years from now. The first payment is 800 and decreases by 50 per payment thereafter. Calculate the present value of this annuity, given that the nominal rate of interest compounded semiannually is 8%

The present value of an ordinary annuity of $2,350 each year for eight years, assuming an opportunity cost of 11 percent, is

Find the present value of the ordinary annuity with annual payment of $400 made at the start of each year for 10 years. with an annual rate of 10%

Prepare a time diagram for the present value of a four-year ordinary annuity of $200. Assume an interest rate of 10% per year.