Calculate the amount of money that needs to be invested today at 7% compounded semi-annually to provide monthly payments of $2000.00 in perpetuity starting: a) one month from today b) one year from today

Q: A perpetuity earning 4.00% compounded semi-annually is started with a $159,000.00 investment. How…

A: Perpetuity refers to a period of indefinite time series and in financial terms, perpetuity refers to…

Q: an annuity with a cash value of $13500 earn 7% compounded 7% semi annually . end of period semi…

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

Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Interest rate is the rate that is charged on the money (Principal) lent by the lender to the…

Q: Find the amount of an annuity that consists of 20 quarterly payments of $700 each into an account…

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

Q: Find the present value of a deferred annuity of P 4,800 every six months for 7 years, if the first…

A: Given Information :  Annuity every six months = P 4,800 Number of years payment made = 7 Annual…

Q: Find the present value (in dollars) of an annuity that pays $9,000 at the end of each 6-month period…

A: The present value of an ordinary annuity(payment at end) can be calculated by using this equation.…

Q: Calculate the future value of an annuity of PhP 10,440 invested every year at 10.9% compounded…

A: Annuity Amount = 10,440 Quarterly Compounding, Interest Rate = 10.9%/4 = 2.725% per quarter Time…

Q: A perpetuity with a present value of $25,000 today yields cash flows of $100 per month. The first…

A: Perpetuity involves receiving cash flow for an infinite period of time. Perpetuity calculation can…

Q: How much should I invest today and expect a reimbursement every other month with a ROR of 0.1…

A: Annual interest rate = 0.10.1 Bi monthly interest rate (r) = 0.1/6 = 0.016666667 Period = 4 years…

Q: In a sequence of 10 annual payments of P2,000 each, the first one is due at the end of 6 years. Find…

A: Calculation of Present Value of Annuity   Year end  Payment  Present value factor at 6%  Present…

Q: calculate the annuity's Present value and Future value

A: Present Value of Annuity: It represents the present value of the future stream of cash flows and is…

Q: Determine the amount of money that must be invested now (time 0) at 6% nominal interest, compounded…

A: given i=6% compounded monthly Annuity = 10000 per year n = 10 years, starting 8 years from now we…

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: How much should I invest today and expect a reimbursement every other month with a ROR of 0.08…

A: Interest rate bi-monthly = 8% Annual effective rate of interest = {[1 + (Interest rate pa % / Number…

Q: Find the present value of a deferred annuity of P760 every six months for 5 years that is deferred 3…

A: When stream of cash flows or annuities are expected to be received or paid over a later date, it is…

Q: Determine the amount of money that must be invested now​ (time 0) at 5​%nominal​ interest,…

A: Nominal rate = 5% Annuity = $8,000 Time of annuity = 15 years   First calculate the effective…

Q: Calculate the cumulative value of an annuity series that starts immediately and makes payments of 10…

A: This is an example of an annuity due that starts immediately.  Given: Annuity payment "PMT" = 10000…

Q: Calculate the amount of money that needs to be invested today at 7.9% compounded semi-annually to…

A: Present value is referred to as the amount of funds today, which is worth higher than the same…

Q: An annuity with a cash value of $9,800 pays $880 at the beginning of every three months. The…

A: a) No. of payment =12.08 or 13 b) size of final annuity payment = $880

Q: Čalculate the compounded future value at EOY 20 of 20 annual payments of $5,000 each into a savings…

A: Future Value is the value of current investments at a certain future date at the assumed…

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: Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest…

A: Calculation of future value of annuity: Answer: Future value of annuity is $20,724.67

Q: An annuity with a cash value of $14,000 earns 5% compounded semi-annually. End-of-period semi-annual…

A: Cash Value = $14,000 Interest Rate = 5% compounded semi annual

Q: Assume that you make quarterly payments of $650 into an annuity paying 8% interest compounded…

A: In this question we need to calculate the future value from following details: Quarterly payment =…

Q: An annuity purchased for $195,000 pays $6,000 at the end of every quarter. How long will the…

A: The term "annuity" refers to an insurance contract created and distributed by financial institutions…

Q: how much should I invest today and expect a reimbursement every other month with a ROR of 0.08…

A: ROR = 0.08 Bi-monthly ROR (R) = 0.08/6 = 0.0133333333 Period = 4 Years Number of bi-monthly payments…

Q: Assume that you deposited RM5,000 at the end of each year for 3 consecutive years in an account that…

A: Annual deposit = RM 5,000 Number of annual deposit = 3 Interest rate = 10% Semi annual interest rate…

Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…

A: Information Provided: Term (number of payments) = 20 Payment amount = $5000 Interest rate = 6%

Q: Find the present value of a deferred annuity of P4,800 every six months for 7 years, if the first…

A: Six months payment =4800 Period =7 years =14 semiannual  interest rate =5.5% semiannual interest…

Q: Find the lump sum deposited today that will yield the same total amount as payments of $15,000 at…

A: Answer -   Formula for Lump Sum deposited Today -  P = R ( 1 - (1+i)-n/ i)

Q: Calculate the present value of a P20,000 annuity paying yearly for eight years, with the first…

A: Annual payment (A) = P 20000 n = 8 years r = 5%

Q: If money is worth 9% compounded quarterly, find the amount of an annuity of P2,000 payable every 3…

A: Quarterly payment (Q) = P 2000 r = 9% per annum = 2.25% per quarter n = 10 years = 40 payments We…

Q: Find the amount necessary to fund the given withdrawals  yearly withdrawals of $1150 for 10 years;…

A: Present value of annuity: Annuity payment * Present Annuity Factor of $1 at i% for n years. Where, i…

Q: If I invest PI0,387 today and expect a reimbursement every 6 months with a rate of l1.54% compounded…

A: solution : given present investment (PV)              =P 10,387 rate of interest…

Q: An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the…

A: Compounding refers to the process where the interest is determined on the principal and interest…

Q: If money is worth 6% compounded semi- annually, find the present value and the amount of an annuity…

A: The payment which is made at the end of 6 months is known as semi-annual payment. By multiplying…

Q: 1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6…

A: Using excel PV function

Q: A retirement account has $260,000.00 that will be used to start an annuity that earns 4.1%,…

A: Please see the next step for the solution

Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…

A: Future Value is the value of current investments at a certain future date at the assumed…

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: Find the lump sum deposited today that will yield the same total amount as payments of 250 at the…

A: This is a case of determining present value of an annuity.  Annuity value (FV) = $250 Number of…

Q: You put \$1,000$1,000 into a savings account today that offers a 5\%5% APR with semi-annual…

A: Banks usually offer loans to customers, and they also accept deposits from the customers. The…

Q: What sum must be deposited today at 18 percent per year compounded monthly if the goal 5 years from…

A: Time value of money is one widely used by the management to evaluate the project and to determine…

Q: Find the present value of a deferred annuity of P30000 every three months for 3 years that is…

A: a. Determine the value of the fund after 1 year using the Excel PV function with the following…

Q: Find the present value of an annuity due that pays $3000 at the beginning of each quarter for the…

A: Here compounding is given quarterly. So, there will be four quarters in a year. Divide rate by 4 to…

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.