An investment is expected to result in equal payments of $9940.00 at the end of each quarter for the next 5 years (ordinary annuity). Compounding: 4 times per year If the appropriate required rate of return (discount rate) is 11%, what is the present value of the annuity stream?

Q: A 15-year annuity of thirty $10,000 semiannual payments will begin 12 years from now, with the first…

A: Present value is the value of securities defining at zero period. It will not take any interest rate…

Q: An investment is expected to result in equal payments of $3160.00 at the end of each of the next 5…

A: The question is based on the application of the time value of money for annuity payments.  Annuity…

Q: given the situation , choose the correct formula to solve the problem: find the future value of an…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where P = Annuity amount i.e. $5000 r = rate of…

Q: What is the present value of an annuity due that promises $20,000 per year for 20 years if the…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

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: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: Future value of an annuity is $55000 Annual interest rate is 5.5% per year compounded monthly Time…

Q: Find the present value of the decreasing annuity necessary to fund a withdrawal of $100 per month…

A: Present Value:- It is the formula through which one can evaluate the worth of future income of the…

Q: of four $10,000 semi-annual payments will begin 5 years from now, with the first payment coming 5.5…

A: Value of annuity is the present value of annual payments to be received considering the interest…

Q: A 15-year annuity pays $1,350 per month, and payments are made at the end of each month. If the…

A: The PV of the annuity is the present worth of the constant amount that has to paid or received in…

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

A: Computation:

Q: The present value of an ordinary annuity is used to compute the amount of a single deposit to be…

A: PV: It is the current worth of cash flows that are expected to happen in the future.

Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…

A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…

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

A: In this we have to calculate the present value factor of annuity to get number of years.

Q: What is the present value of a four-period annuity of $200 per year that begins two years from today…

A: Annual annuity amount = $200 Time Period = 4 years Discount Rate = 9%

Q: What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6…

A: Ordinary Annuity =$2000 Years(n) = 4 Interest rate(r) = 6% Future Value = Ordinary annuity * […

Q: What is the present value of an annuity that consists of 24 semiannual payments of $8000 at the…

A: Present value is the current value of future cash flow with respect to time value of money.

Q: An annuity will make a payment every two months, starting two months from now. If the yield rate is…

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

Q: An investment is expected to result in equal payments of $300 at the end of each of the next 8 years…

A: Note: It is a case where no question is specified to solve among the multiple questions posted, so…

Q: Explain Step by Step What is the present value of an annuity that pays $X per month for 10 years,…

A: PVA refers to the amount that will be acceptable today if the series of payments is made on future…

Q: If the present value of an ordinary, six-year annuity is $8,500 and the interest rates are 9.5…

A: Given: Resent value of Ordinary Annuity = $8500 Interest Rate = 9.5% Time =6 years So, the value of…

Q: You expect to make equal payments of $3460.00 at the end of each semi-annual period over the next 3…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Calculate the present value of a four-period annuity of $200 per year that begins two years from…

A: Present value is calculated by discounting all the future cashflows

Q: Calculating Annuity Present Value An investment offers $4.600 per year for 15 years. with the first…

A: Calculation of Value of Investment:The value of investment is $39,373.60.The value of investment at…

Q: A one-year annuity that pays $100 semi-annually will starts its payment in 6 months from now. APR is…

A: Present Value of  Ordinary Annuity refers to the concept which dictates the discounted value of a…

Q: Suppose that you will receive annual payments of $16,500 for a period of 10 years. The first payment…

A: Present value is the current worth of the future payments to be made at a specific interest rate.…

Q: If the present value of an ordinary, 6-year annuity is $9,400 and interest rates are 9.5 percent,…

A: Time value of money is the concept widely used by the management to determine the worth of money…

Q: the next 3 years (ordinary annuity). If the appropriate required rate of return (discount rate) is…

A:

Q: Find the present value of a simple perpetuity of P10,000 payable semi-annually if the interest rate…

A: The formula to calculate the present value of the growing annuity is  Present value of annuity due=…

Q: Suppose that an annuity will provide for 20 annual payments of 1440 dollars, with the first payment…

A: Total number of annual payments is 20 Annual payments $1440 First payment coming in 11 years from…

Q: You are considering an annuity which costs $120,000 today. The annuity pays $13,255 a year at an…

A: Given: Present value of Annuity=$120000Annuity =$13255Interest rate (r)=9.75%

Q: You may purchase an annuity that will pay you ¥300,000 in income per year starting one year from now…

A: Annual income (P)= ¥300,000 Annual interest rate (R) = 4% Period (N) = 22 Years

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. $2,300 per…

A: A concept that implies the future worth of the money is lower than its current value due to several…

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: You are considering an annuity that costs $91,288 today. The annuity pays $6,500 a year at an annual…

A: The length of the annuity will depend upon the costs of the annuity, the periodic payment, and the…

Q: A. What is the value of the annuity 5 years from now? B. What is the current value of the annuity?

A: Solution:- Given, A 5-year annuity of ten = $50,000 semi annul payments  Begin 9 years from now,…

Q: A 10-year annuity pays P900 four times in year. The first P900 will be paid five years from now. If…

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

Q: A 20-year annuity of forty $11,000 semiannual payments will begin 10 years from now, with the first…

A: Nominal Interest rate = ((1 + real rate / 12)^6 -1)*2 = (( 1 +14%/12)^6 - 1)*2 = 0.1441474102…

Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, r= rate of interest i.e. 9%/12 = 0.75% or…

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: Suppose withdrawals of 10,000 every year starting at time 8 will be made and will go on forever. How…

A: Annual Withdrawals is 10,000 Time Period is forever Annual Withdrawals starts at Time 8 Effective…

Q: Suppose payments will be made for 6 1/4 years at the end of each month from an ordinary annuity…

A: given, n=6.25 m=12 r=4.25% PVA =$46,000

Q: An increasing annuity makes annual payments, and the first payment occurs in 6 months. The annuity…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Suppose a $100 monthly payment, at a .5% nominal rate per month, for 36 months. Find the present…

A: given information monthly payment = $100 interest rate = 0.5%/12 = 0.04166666666% no of months = 36…

Q: an investment is expeted to result in equal payments of $9740.00 at the end of each month for the…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: An investment is expected to result in equal payments of $ 14300.00 at the end of each semi-annual…

A:

Q: A 10-year annuity of twenty $10,000 semiannual payments will begin 12 years from now, with the first…

A: Semiannual payment (A) = $10000 Annuity duration (n) = 10 years = 20 periods First payment (CF)…

Q: You expect to make equal payments of $ 9020.00 at the end of each of the next 6 years (ordinary…

A: Future value of ordinary annuity = Annual payment x [(1 + i)n - 1]/i

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.