An annuity of quarterly payments of P7,000 starts at the end of 4 years and end of 10 years. Find its present value if the interest rate is 8% compounded quarterly. a. Kind of annuity: b. Computation:

Q: 3. a. What is the value at the end of Year 3 of the following cash flow stream if interest is 10%,…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: What is the future value annuity due of RM32,000 for the next 10 years with a discount rate of 8%?…

A: Amount of Annuity = RM 32,000 Years(n) = 10 Interest Rate(r) = 8% Future Value of Annuity = RM…

Q: What is the future value annuity due of RM34,560 for the next 10 years with a discount rate of 12%?…

A: Using the FV function in excel

Q: 2. You are comparing two annuities which offer monthly payments of $1,000 for five years and pay 1.0…

A: The combination of payments which are generated for a common period with defined difference with two…

Q: 6. What is the present value of a 7-year ordinary annuity with annual payments of $300, evaluated at…

A: Annual Payment(P) =$300 Interest Rate (r) = 10% = 0.10 Years(n) = 7  Therefore, Present Value of…

Q: dinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%.

A: Given information :

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

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

Q: The future value of regular annuity of $2,000 per year for 20 years is $73,888.32. What interest…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: 5. Suppose an annuity at 4% compounded semi-annually will pay $4000 at the end of each 6-month…

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

Q: 6. Given a nominal rate of 15% čómpounde for 12 years in an ordinary annuity. Determine the…

A: The factor is calculated using the required rate of return and for the given period. The factor is…

Q: 1. A five-year ordinary annuity has a present value of $1,000 and the interest rate is 10 percent of…

A: The formula for the calculation of PV of ordinary annuity is as follows: PV of…

Q: 3. a. What is the value at the end of Year 3 of the following cash flow stream if interest is 10%,…

A: Note: It is given to solve Part A only. Hence I solved Part A only. Answer 3 a) Given: Interest =10%…

Q: What is the present value of a perpetuity of annual payments where the first payment is in one year…

A: The given problem relates to perpetuity. A perpetuity is a series of uniform cash flows over an…

Q: 5. What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at…

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

Q: 3.12  Suppose the spot rates of interest for investment horizons of 1 to 5 years are 4%, and for 6…

A: In the given question we require to Compute the future value of the annuity-immediate at the end of…

Q: 5. What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at…

A: Using the FV function in excel

Q: An annuity-immediate pays $40 per year 14 years, then decreases by 2 per year for nine years. And an…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: PMT = 58 Period = 13 years  Nominal rate of interest = 7.23% Additional amount = 1000

Q: . If you borrow $8,000 with a 5 percent interest rate to be repaid in five equal payments at the end…

A: Annuity = $ 1848

Q: 4. What is the present value of a semi-annual payments of ₽8,000 at the end of each term for 12…

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

Q: 2. What's the present value of $25,000 received after 5 years if the appropriate interest rate is…

A: using the PV function

Q: What is the present value of an annuity consisting of payments of $800 every month for 8 years, with…

A: Present value is the current worth of the amount that  is deposited or received in some future date…

Q: Find at 5% p.a. effective the present value of an annuity-certain, payable annually in arrear for 40…

A: Effective Interest Rate = 5% Time Period = 40 years   Cash Flows: Year Annuity Annual Increase…

Q: What is the present value annuity due of RM4,500 with a 6 percent discount rate for 5 years? Select…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: A9. If the nominal rate of interest on a loan is 16.3% and interest is compounded monthly, what is…

A: Using excel effective rate function

Q: Calculate the present value of an annuity-due of $200 over 8 years given that the spot rates of…

A: PV of annuity due is the sum of present value of future cash flows

Q: 1. An ordinary annuity has cash flows at the end of each period. True or False 2. Compounding…

A: Annuities refer to financial products which offer a guaranteed income for retirees and are…

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Present Value represents the present worth of the investment. This can be computed by using Excel…

Q: . What amont of money is equivalent to receiving ₱ 10,000 three years from today, if interest is…

A: Present value is the value which has been computed by the company are by the investor when the…

Q: RM 50 is deposited every month for 2 years at 12% compounded monthly. What is the future value of…

A: An annuity is a series of cash flows with a fixed payment over a specific time period. The future…

Q: What is the future value of the initial $10,000 deposit after 5 years? We assume current interest…

A: Future value of the initial $10,000 deposit after 5 years can be calculated using future value…

Q: 4. What's the present valueof $10,000 received after 10 years if the appropriate interest rate is…

A: Using the PV function

Q: Calculate the present value of an annuity due that pays 500 per month for 10 years. The annual…

A: Annuity due can be defined as a series of equal payments which starts at the beginning of the…

Q: 2. a) Find the future value of an annuity when the payment is P13,750 quarterly, the interest is…

A: The future value would be considered as the value that is accumulated after putting several…

Q: Qnl. A series of payments of 700 Riyals is made at the end of each quarter in an account for 5…

A: Given: Payment = 700 Years = 5 Nominal interest rate = 3.6% Compounding 4 times in a year

Q: 5. What is the future value of a b year odinary annuity With annual payments of $200, evaluated at a…

A: using the Fv function

Q: 1)An asset promises to pay $60 in each of the next three years.  Assume the rate of discount is 5%…

A: Amount paid for next 3 years = $60 Discount rate = 5% So, the present value of the asset =…

Q: QUESTION 5 What is the present value of an annuity (to nearest dollar) that will give you 25…

A: FORMULA USED FOR CALCULATING THE PRESENT VALUE OF ANNUITY IS AS FOLLOW : GIVEN: RATE = 10% NPER =…

Q: How much will be the future value of a 5-year ordinary annuity which has annual payments of $200,…

A: The question gives the following information:

Q: An annuity of quarterly payments of P7,000 starts at the end of 4 years and end of 10 years. Find…

A: Quarterly payment = P 7000 First payment = 4 Years = 4*4 = 16th quarter Number of quarterly payments…