Calculate the value of the annuity due without a table. (Do not round intermediate calculations. Round your answer to the nearest cent.) Payment payable Amount of Interest Value of annuity Years payment rate due 2$ 2,100 Annually 5 %
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A: Given, A= $12,800 rate = 8% years = 7
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A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
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A: We know that, FVA Ordinary = P×1+in-1i =$2400×1+10%44×5-110%4=$61,307.1782=$61,307.18
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A: FV = PV * [(1 + i)n - 1] / iFV = PV * FVIFA(i,n) where, FV = Future Value of AnnuityPV =…
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A: PMT = 7500 For Semi annual compounded: i = 6%/2=3% period (n) = 3*2=6
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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?Complete the ordinary annuity. (Please use the following provided Table.) (Do not round intermediate calculations. Round your answer to the nearest cent.) amount of payment payment payable years interest rate value of annuity 12,700 semiannual 9 6%Choose the letter of the correct answer and write it on the space provided _____ 1. A sequence of payments made at equal (fixed) intervals or periods of time. A. Annuity C. Ordinary Annuity B. Annuity due D. Simple Annuity ______2. The amount of each payment. A. Payment interval C. Annuity Payment B. Periodic Payment D. Time payment ______3. It is time between the purchase of an annuity and the start of the payments for the deferred annuity. A. Period of deferral C. Payment interval B. Annuity payment D. Period of payment ______4. A type of annuity in which the payments are made at the end of each payment interval. A. Annuity due C. General Annuity D. Simple Annuity D. Ordinary Annuity ______5. Compounding quarterly means the interest period is A. every year C. every 6 months B. every 4 months D. every 3 months ______6. In a monthly payment of P2,000 for 5 years that will start 7 months from now, what will be the period of deferral? A. 7 B. 5 C. 4 D. 6 ______7. A loan is given an…
- Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $54,000 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its present value? Group of answer choices $279,396 $291,703 $250,193 $273,380Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $324,000 at the end of 3 years, what is its present value? Group of answer choices $279,396 $291,703 $273,380 $250,193Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $54,000 every 6 months for 3 years, what is its present value? $279,396 $250,193 $273,380 $291,703
- Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $108,000 at the end of each year for 3 years, what is its present value? Group of answer choices $291,703 $273,380 $279,396 $250,193For 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…Which of the following is false? The future value of a deferred annuity is equal to the future value of an annuity not deferred. If the first payment is received at the end of the fifth period, it means the ordinary annuity is deferred for five periods. The present value of a deferred annuity is less than the present value of an annuity not deferred. To calculate the present value of a deferred annuity, determine the present value of an ordinary annuity for the entire period and subtract the present value of the payments which were not received during the deferral period.
- 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.Do not provide solution in imge format. and also do not provide plagarised content otherwise i dislike. Monthly payments of $150 are paid into an annuity beginning on January 31, with a yearly interest rate of 12%, compounded monthly. Add the future values of each payment to calculate the total value of the annuity on September 1.On September 1, the value of the annuity will be $ (Round to the nearest cent.)If annuity A has 30 payments of $500 at an interest rate of 10% and annuity B has 30 payments of $500 at an interest rate of 9%, which one has the higher present value? Select one: a. Not enough information to determine. b. B c. A
