An annual payment of P14 000 is made with interest rate of 10% compounded quarterly for 16 years.  1. Determine the present worth considering annuity due. 2. Compute the difference of the future amounts of the annuity due and ordinary annuity. 3. If the first payment was made at the end of the 10th year, determine the present worth considering ordinary 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: If the single payment present worth factor for 10 years is 0.30656. Determine the interest rate…

A: The present factor is the present value of $1 that has to be received/paid in the future.

Q: The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment…

A: Periodic payment = 20,000 Interest Rate = 18%/12 = 1.5% per month N = 15 years i.e. 180 months…

Q: Determine the present value of an Annuity Php 1,000.00 for 25 quarterly installment that will start…

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

Q: Based on a 5% annual effective interest rate, find the present value of a 10-year annuity with level…

A: This is deferred annuity as the first payment is being done sometime later in the future (6th year).…

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: Calculate the future value of an ordinary annuity of which periodic deposit is P7,000.00 at 8%…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: The future value is $

A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n  - 1) /interest…

Q: Find the present value of an ordinary annuity with regular quarterly payments worth Php1,000 at 3%…

A: The question gives the following information:

Q: Quarterly payments of P2,000 for 4 years with interest rate of 6% compounded quarterly. Find the…

A: Present value of ordinary annuity is the present value of the future payment of annuity at a given…

Q: The future value of an anjuity at the end of ten years is 80000, the payments are made at the end of…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: Find the present value of the following annuities: 1. 100 payable every month for 10 years if the…

A: Present value is referred as the current value of future sum of funds or the cash streams that are…

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

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

Q: Find the amount of an annuity consisting of 16 annual payments of $1000 each into an account that…

A: A regular series of fixed payments that are made or received at equal time intervals is term as the…

Q: Find the present value of ar prdinary annuity whose periodic payment of 15,000.00 is payable at th…

A: Present value of annuity is the equivalent value of annuity today considering the interest rate and…

Q: Find the present value of an annuity due that pays $2,200.00 at the beginning of every 2 months for…

A: There are two types of annuities: 1. Ordinary annuity 2. Annuity due. In ordinary annuity payment is…

Q: Calculate the future value of an ordinary annuity where $360 is deposited and compounded quarterly…

A: The ordinary annuity of the payments would be considered as payment made at the end of the year, and…

Q: Php 15,000 is deposited every month for 2 years 8 months at 13% compounded monthly, what is the…

A: Annuity refers to the equal amount of payments/deposits made at equal time intervals for a definite…

Q: Find the future amount and present value of the annuity of P270 payable every end of the month at 9%…

A: Present value considers the time value of money concept. It considers the discounting factor at…

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: Find the present value of an ordinary annuity with deposits of 23,958 every 6 months for 4 years at…

A: The formula to compute present value:

Q: Find the value of an ordinary annuity with regular quarterly payments worth P1,000 at 3% annual…

A: Regular quarterly payments=  P1,000 Annual interest rate= 3% compounded quarterly= 0.03/4= 0.0075…

Q: Suppose P1500 is deposited at the end of each year for the next 6 years in an account paying 8%…

A: Formula:  Periodic Deposit at the end of the Year,…

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

A:

Q: The present value of a five-year annuity-immediate, with payments of $100 each six times per year,…

A: Present Value (PV)= $2093 Time (t)= 5 years Annuity Amount (A)= $100 (6 times a year)= $600 Rate of…

Q: Find the value of an ordinary annuity with a regular payment of P1,000 at 5% compounded quarterly…

A: An ordinary annuity is a series of equal regular payments that are made at the end of consecutive…

Q: What is the accumulated amount of a 9-year annuity paying P 1,109at the end of each year, with…

A: The accumulated amount after 9 years will be the future value of the annutiy.

Q: Find the present and the future value of quarterly payments of $2,000.00 for 5 years with interest…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

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

A: Time Period = 20 Years Interest rate = 5% Present Value = $180,000

Q: Determine the present value and total amount of an annuity with 6 payments of P120,000 each made at…

A: The interest is compounded quarterly at rate of 3.75%.

Q: The effective rate of interest is 3% per annum. Calculate the value at start of the payment stream…

A: Interest Rate = 3% Time Period = 14 Years First Payment = £600 Increased payment by = £600

Q: What is the accumulated amount of a 8-year annuity paying ₱ 4,300at the end of each year, with…

A: Using excel FV function

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: find the present value of a 2 year deffered annuity at 4% interest compounded quarterly with…

A: The question gives the following information:

Q: Find the amount and present value of an ordinary annuity of P5,400 payable quarterly for 7 years if…

A: Solution:- When an equal amount is paid each period, it is called ordinary annuity. So, we have,…

Q: Find the difference between the sums of an annuity due and an ordinary annuity for the following…

A: Answer = P53,991 Solution: The Formula to calculate the future value of the annuity at the end of…

Q: Determine the present value of an annuity of $600 paid monthly for a period of 15 years at 4.50% APR…

A: To calculate the present value we will use the below formula   Present value = P*[1-(1+r)-n]/r Where…

Q: In a sequence of 10 annual payments of 2,000 pesos each, the first one is due at the end of 6 years.…

A: An annuity is a series of regular and equal cash flows. The present value is the discounted value of…

Q: An annuity that pays $950 at the end of each month for 18 years sells for $105,000 What was the…

A: Quarterly Compounded Nominal Interest Rate: Quarterly compounding outperforms semi-annual…

Q: Find the future value and the present value of an annuity of 3500 payable atbthe end of each month…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: The present value of an annuity of P5,000 payable at the end of each quarter for 9.5 years is…

A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…

Q: A student will receive P 3,000 at the beginning of each 3 months for 4years. What is the sum of the…

A: Quarterly payment (P) = P 3,000 Period of payment = 4 Years Number of payments (n) = 4*4 = 16 Annual…

Q: Determine the present and future value of an ordinary annuity for 80,000 pesos with 3% compounded…

A:

Q: What is the difference between the sums of an annuity due and an ordinary annuity for the following…

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

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: What is the difference between the sums of an annuity due and an ordinary annuity for the following…

A: We need to compute the future value of both the annuities and compare. Future value can be…

Q: A man bought an eapt casting P300k payable in 12 quarter payments with i = 24%, determine…

A: Loan = 300,000 N = 12 Quarters Annual Rate = 24% Interest Rate = Annual Rate / 4 = 24%/4 = 6% per…

Q: Determine the present value of an ordinary annuity paid annually for 25 years if payments are 1.200$…

A: Ordinary Annuity is one of the two classification of annuities where first annuity transaction is…

Q: A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of this…

A: Future of Annuity Due = Annuity * [ { ( 1 + Quarterly rate )Number of quarters - 1 } / Quarterly…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.