Calculate the future value of an annuity, with case A being an ordinary annuity and case B being an annuity due. Deposit Period (Yrs) Value ($) Interest Future Case Rate (%) Annuity 13,000 3,000 A 3 8 12
Q: Use a calculator to evaluate an ordinary annuity formula nt 1 + A = m for m, r, and t…
A: An annuity is a series of payments made at equal intervals. Examples of annuities are regular…
Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 4%…
A: Future value of an annuity: The worth of a sum of money that will be paid on a specified date in…
Q: An annuity pays an amount of $86.00 each period for 9 periods, and the present value is $666.00.…
A: An annuity is a series of payments made at equal intervals. Examples of annuities are regular…
Q: Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) (Do not round…
A: Ans. For computing the value of an ordinary annuity the present value factors should be taken into…
Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of…
A: It means the value of the total cost of an annuity at present time. It means if it would be paid…
Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment R,…
A: Ordinary annuity: Regular payments given at the conclusion of each term, such as monthly or…
Q: Present value of an annuity Consider the following cases, Amount of annsity Interest rate Ferind…
A: i) Case A Annuity (PMT) = $12000 Interest rate ( r) = 7% Number of years n) = 3 Using the formula…
Q: Complete the following for the present value of an ordinary annuity. (Use Table 13.2) (Do not round…
A: Given, Rate=8% per annum4 quarters per year=2% per quarterPeriod=3 years×4 quarters per year=12…
Q: Use a calculator to evaluate an ordinary annuity formula . nt 1+ for m, r, and t (respectively).…
A: Ordinary annuity is the series of payment made by an individual over a specified period of time.
Q: s: Solve edch fhe follOwing Find the present value and the amount of Future value of the general…
A: Present Value/Future Value: It is the current value of a future sum of money at a specified rate…
Q: . If the present value annuity factor is 3.8896, what is the present value annuity factor for an…
A: in this we have to calculate present value FACTOR for ANNUITY due.
Q: Calculate the future value of an ordinary annuity that pays $2,350 at 6% for 6 years. Also determine…
A: Annuity is the series of periodic payments. If the annuity payment is made at the end of the periods…
Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: The present value of a perpetuity is equal to the payment on the annuity, PMT, divided bythe…
A: Perpetuity is the annuity which is paid for infinite time period. In other words, it refers to the…
Q: Solve for the FVA or PVA value of the following annuity DUE s; Payment amt $ 12,000.00 $ 60,000.00…
A: a) Ordinary annuity and annuity due can be calculated using formula and excel. Since, the question…
Q: 1- If the future value of an ordinary, seven-year annuity is $6,000 and interest rates are 7.5…
A: Note: As per the policy, we are supposed to solve the first question at a time. Kindly repost the…
Q: Use a calculator to evaluate an ordinary annuity formula. For m, r, and t (respectively). Assume…
A: The present value of an annuity is the value of all the future payments at this moment. In an…
Q: Use a calculator to evaluate an ordinary annuity formula nt (1+ )" - 1 for m, r, and t…
A: Given values: Present value (PV) is $100. Maturity period (N) is 11 years. Number of payments in a…
Q: Find the future value for the ordinary annuity with the PMT = $1,600; 1.35% compounded monthly for 6…
A: In order to find the future value be can use this formula as provided or can use excel. Future value…
Q: 'an Dyke have decided to establish a quarterly ordinary annuity of $2,000 for the ne invest in a…
A: This is present value of annuity problem and we have to find out present value FACTOR and find out…
Q: An annuity pays $145.00 each period for 10 periods. For these cash flows, the appropriate discount…
A: Using Future value function in Excel
Q: Find the future value of an annuity when the payment is P13,750 quarterly, the interest is 6.5%…
A: Compounding is the process of crediting interest to both an existing principal amount and previously…
Q: An annuity pays $145.00 each period for 10 periods. For these cash flows, the appropriate discount…
A: Future value annuity = annuity * PVAF(rate,period)
Q: 4. a.) What is the future value of an annuity due with an annual payment of $1,500 forf interest?…
A: Annuity due refers to that annuity in which payments are made at the beginning of each period.
Q: Find the future value of the following ordinary annuity. Payments are made and interest is…
A: Future value of an ordinary annuity The value of the sum of future cash flows is called the future…
Q: By using the calculate the future value of a 5 - year ordinary annuity , if the annual interest is…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
Q: Use a calculator to evaluate an ordinary annuity formula 1 +4 nt - 1 A = m for m, r, and t…
A: Ordinary Annuity: They are the payments made in series at the ending period for a fixed period.
Q: Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest…
A: Required: Compute the annual interest rate in each case.
Q: EQuestion Help Use graphical approximation techniques or an equation solver to approximate the…
A: Periodic Payments= $1000 Future Value= $5898.27 Number of periods= n= 5 Years We need to find R-…
Q: Use a calculator to evaluate an ordinary annuity formula - 1 + nt - 1 A = m for m, r, and t…
A: Ordinary annuity refers to a series of equal payments to be made at the ending of consecutive period…
Q: You are given the following about two annuities-immediate: Annuity A pays 300 at the end of each…
A: Answer. Option D. 13% Working PV of Annuity A = [300 / (1+i)^1]+[300 / (1+i)^2]+[300 /…
Q: Use a calculator to evaluate an ordinary annuity formula nt A = m for m, r, and t (respectively).…
A: A series of fixed payments that are paid or received at an equal time interval is term as the…
Q: If the future value of an ordinary, 6-year annuity is $5,900 and interest rates are 7.5 percent,…
A: Calculate the future value of annuity due as follows: Future value of annuity due = Future value…
Q: Use a calculator to evaluate an ordinary annuity formula nt A = m for m, r, and t (respectively).…
A: Given: Monthly payment (m) is $100 Annual rate (r) is 8% For 11 years
Q: (a) Find the present value of the annuity if it makes ten payments. Present value of annuity = $|…
A: This is related to annuity and hence we can solve the same using the formulas applicable to…
Q: Use a calculator to evaluate an ordinary annuity formula nt 1 1 + A = m for m, r, and t…
A: A series of fixed payments that are paid or received at an equal time interval is term as the…
Q: Amount of Annuity: $26,000 Interest Rate: 12% Period of years: 12 Calculate the present value of…
A: The present value of annuity can be computed with the help of present value of annuity function.
Q: An annuity pays an amount of $102.00 each period for 11 periods, and the present value is $798.00.…
A: Given: Present value =$798No. of periods =11Annuity=$102
Q: posit at the end of hat year 3? p5-19 Future value of an annuity For each case in the accompanying…
A: Future Value of Ordinary Annuity is the value of the sum of money in the future date based on a…
Q: Each payment of an annuity due is compounded for one compounded for one Select- -Select- v period,…
A: The annuity due shall be the annuity payable at the start of each year. The annuity due one typical…
Q: Future value of an annuity For cach case in the accompanying table, answer the questions that…
A: Future value is the expected value of the current sum at a future date.
Q: What is the present value of a five period annuity of $3,000 if the interest rate is 12% and the…
A: To calculate the present value, we will discount each cash flow and add the discounted cash flows.…
Q: The ___________ of an annuity is the amount that must be invested now at interest rate i per time…
A: The Present value is arrived at by discounting the future cash flow using the interest rate. This is…
Q: Complete the table below by computing for the unknown component of a general annuity. PMT r t…
A: Effective Rate of Interest- The effective rate of interest is the rate of interest that can be paid…
Calculate the
SEE PIC for NUMBER DETAILS
Annuities -
Annuities are the agreements and contracts that promise periodic and regular payments or series of cash flows either in the present immediately or in the future period. These are considered insurance contracts that pay a regular and fixed payment of funds on a specified period of time.
There are ordinary annuities and annuities due. An ordinary annuity is the annuity that pays regular payments in equal amounts and an annuity due is an annuity that pays immediately at the end of specified periods of time.
Step by step
Solved in 3 steps with 2 images
- The present value of a perpetuity is equal to the payment on the annuity, PMT, divided bythe interest rate, I : PV = PMT/I. What is the future value of a perpetuity of PMT dollars peryear? (Hint: The answer is infinity, but explain why.)Which of following formulas is used to calculate the present value of a perpetual annuity? Seleccione una: a. P= f / (1+i)^n b. P= f / (i - g) c. P= a / (i - g) d. P= a / (1+i)^n e. F = P * (1+i)^nIf the future value of an ordinary, 7-year annuity is $6,200 and interest rates are 6 percent, what's the future value of the same annuity due? $6,572.03 $6,634 $5,849.06 $6,200
- Use the formula for the present value of an ordinary annuity or the amortization formula to solve the following problem. PV=$12,00; PMT=$400; n=55; =i?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?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
- 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) Present Value Annuity Amount i n1. ? $ 3,000 8% 52. $ 242,980 75,000 ? 43. 161,214 20,000 9 ?4. 500,000 80,518 ? 85. 250,000 ? 10 4 Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $12,000 in student loans. She asks for your help in determining the…Present value of an annuity Consider the following case. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Amount of annuity Interest rate Period (years) $26,000 9% 4 a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity—ordinary or annuity due—is preferable? Explain why.
- Calculate the Present Value of an ordinary Annuity (PVA) that includes 12 payments of $200 and an interest rate of 9%.Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what is the present value of $16,491.00 (rounded to the nearest dollar) to be received at the end of each of the next four years, assuming an earnings rate of 12%? a.$59,450 b.$16,491 c.$50,083 d.$39,611 Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a…Use these present value tables to answer the question that follow.Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, if an investment is made now for $23,500 that will generate a cash inflow of $8,000 a year for the next four years, what would be the net present value of the investment, assuming an earnings rate of 10%? a. $16,050 b. $25,360 c. $23,500 d. $1,860