Annuity Review Problem: You are buying a perpetuity-immediate that makes annual payments X, X + 1, X +2, X, X + 1, X + 2, X, X + 1, X + 2, X,.... The price of the annuity is 40 when priced at (2) = 5%. Find X. A) 0.98 B) 1.00 C) 1.02 D) 1.04 E) 1.06
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- Give typing answer with explanation and conclusion to all parts If $387674 is used to purchase an annuity earning 5.5% compounded monthly and paying $3102 at the end of each month, what will be the term of the annuity? Include the final, smaller annuity payment in the total. (Just state total months as a number, not years and months) What is N? What is I/Y? What is C/Y? What is P/Y? What is PV? What is PMT? What is FV?Ordinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%. Inputs: PMT = $1,000 N = 5 I/YR = 15% PV = $3,352.16 FV= $6,742.38 How would the PV and FV of the above annuity change if it were an annuity due rather than an ordinary annuity? PV annuity due = ?Exactly the same adjustment is made to find the FV of the annuity due. FV annuity due = ?If you were to borrow $9,100 over five years at 0.13 compounded monthly, what would be your monthly payment? Round to two decimal places. check_circle Expert Answer thumb_up thumb_down Step 1 Annuity - Annuity means the amount of series of payments based on fixed intervals periods. The formula used to calculate annuity is = Amount*PAVF(R, N) where PAVF = Present value annuity factor, R = Interest rate , N= no of periods Step 2 In the given question we have, Amount borrowed = $9,100 Interest rate = 0.13% compounded monthly N = no.of periods = 5*12 = 60 periods Let the monthly payment be =x x,PVAF(0.13%,60) = $9,100 X*PVAF(1+0.0013)60 = $9,100 X*61.4396868 = $9,100 how is this calculated? I don't get this number. X = $9,100/61.4396868 X = $ 148.11 monthly payment = $148.11
- An annuity pays an amount of $86.00 each period for 9 periods, and the present value is $666.00. What is the discount rate/period of this annuity kindly use formulaUsing the annuity table, complete the following. (Use Table 13.2.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Payment amount end of each period 1,450 Frequency of payment - Annually Length of time 7 years Interest rate 9 % PV of AnnuityWhat is the PV of an annuity due with 5 payments of $2,500 at an interest rate of 5.5%? Hint: when you see the word “due”, it means that the first payment happens right away (rather than at the end of the period) so you must adjust the formula, in Excel make type=1: =PV(Rate, nper, pmt, fv, type=1)
- i need answer typing clear urjent no chatgpt if the future value of an ordinary eight year annuity is $5500 in interest rates are 8.0% what is the future value of the same annuity due? (round your answer to 2 decimal places)In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $42,000 and the interest rate is 8.50%, the borrower “pays” 0.0850 × $42,000 = $3,570 immediately, thereby receiving net funds of $38,430 and repaying $42,000 in a year. a. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 18.50%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)hey could you please Fill out the entire annuity chart # Payment and frequency (PMT) Time in years (n) Interest rate and compound frequency (I/Y) Present Value (PV) Future Value (FV) a. $500.00 per quarter (end) 5 years 5% compounded quarterly ______________ Not Applicable b. $241.63 per month (end) 69 payments 6 ¾ % compounded monthly Not Applicable _______________ c. $____________ per quarter 7 years and 3 months 3 % compounded semi-annually $8,000.00 Not Applicable d. $445.30 per month __________years 7.45 % compounded quarterly Not Applicable $24,788.40 e. $2,000 beginning of every six months 12 ½ years _______compounded quarterly $46,000 Not Applicable