AnnuityFuture ValueInputsPayment80Discount Rate/Period6.00%Number of PeriodsAnnuity Future Value using a Time LinePeriod1234Cash FlowsFuture Value of Each Cash FlowFuture ValueAnnuity Future Value using the FormulaFuture ValueAnnuity Future Value using the FV FunctionFuture Value 2. An annuity pays $80.00 each period for 5 periods. For these cash flows, the appropriate discount rate/period is 6.0%.What is the period 5 future value? Use worksheet "Annuity-FV".

Future value of annuity is the future value of all the stream of cash flow. Future value of…

Answered: Annuity Future Value Inputs Payment 80…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11QTD

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Similar questions

If the 10 percent present value ordinary annuity factor is 8.5136 and the11 percent PVAF is 7.9633, a PVAF of 8.1234 correlates to an internal rateof return of __________________.
Which of the following describes how to calculate abond’s issue price?Face Value Interest Paymentsa. Present value of single amount Future value of annuityb. Future value of single amount Present value of annuityc. Present value of single amount Present value of annuityd. Future value of single amount Future value of annuity
PV = Cash Flow/Interest Rate is the present value shortcut formula for which of the following: * A perpetuity A single cash flow in the future A growing perpetuity An annuity
Given the following information, calculate the rate of return. price = $501.88time to maturity = 10 yearsannual payment = $100type = ordinary annuity
Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 10 9% 0 $286.87 ? 18 16% 0 $1,397.76 ? 30 2.5% 0 $721.92 ? 280 1% 0 $553.71 ? Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 10 9% 0 $286.87 $nothing (Round to the nearest cent.) 18 16% 0 $1,397.76 $nothing (Round to the nearest cent.) 30 2.5% 0 $721.92 $nothing (Round to the nearest cent.) 280 1% 0 $553.71 $nothing (Round to the nearest cent.)
Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 ? $0.00 $600.00 $2,386.09 18 ? $13,278.73 $354.57 $0.00 40 ? $0.00 $1,872.79 $40,000.00 60 ? $266,564.09 $500.00 $0.00 Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 nothing% (Round to two decimal places.) $0.00 $600.00 $2,386.09 18 nothing% (Round to two decimal places.) $13,278.73 $354.57 $0.00 40 nothing% (Round to two decimal places.) $0.00 $1,872.79 $40,000.00…
Define each of the following terms: h. Replacement chain; economic life; capital rationing; equivalent annualannuity (EAA)
Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 5 10% 0 $329.44 ? 15 18% 0 $1,277.33 ? 29 4% 0 $712.45 ? 260 0.7% 0 $425.09 ? Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 5 10% 0 $329.44 $nothing (Round to the nearest cent.)
Complete the table below by computing for the unknown component of a general annuity. PMT r t Payment interval Compounding period FV PV 1.P900 6% 6.25 yrs. Monthly quarterly ? 2.P1800 11% 8 yrs. Quarterly monthly ? 3.P500 5% 8 yrs. Monthly annually ?
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) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Annuity Amount i = n = 1. ? $2,400 8% 5 2. 533,082 140,000 ? 4 3. 583,150 180,000 9% ? 4. 530,000 75,502 ? 8 5. 235,000 ? 10% 4
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)(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of 1$ and PVAD of $1) (Use appropriate factor (s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Annuity Amount i= n= ______________ $ 2,600 8% 5 507,866 135,000 _____ 4 661,241 170,000 9% ____ 540,000 78,557 _____ 8 230,000 _____________ 10% 4
Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 5 8% 0 $213.22 ? 16 15% 0 $3,317.78 ? 29 4.5% 0 $674.57 ? 300 1% 0 $2,538.86 ? Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 5 8% 0 $213.22 $nothing (Round to the nearest cent.)

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