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 payable Years Interest rate Value of annuity payment %24 12,800 Semiannually 7 8 %
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- 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%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?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…
- We can now use the following formula to find the present value of the account where the annuity payments are $400 each month. present value = table factor ✕ annuity payment The table factor was determined to be 21.67568. Before using the above formula, we must add 1 to the table factor since this is an annuity due. Thus, the table factor to use in the formula is 21.67568 + 1 = . Substitute the values into the formula, rounding the result to the nearest cent. present value = table factor ✕ annuity payment = ✕ 400 = $ Therefore, to receive annuity payments of $400 at the beginning of each month for 2 years, the amount that should be deposited now into an account earning 6% interest compounded monthly, to the nearest cent, is $ .Give typing answer with explanation and conclusion Determine the periodic payment for the following deferred annuity. The annuity is an ordinary annuity following the period of deferral. Deferral period Payment interval (months) Interest rate (%) Compounding frequency Term (years) Present value ($) 27 months 1 6.4 Quarterly 20 50,000.00For 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% 4Briefly describe the replacement chain (common life) approach, anddifferentiate it from the equivalent annual annuity (EAA) approach.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.)
- 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 ?Computing Present Value of Annuity Payments Under Different Assumptions Compute the present value of the annuity stream for each of the four separate investment scenarios that follow. Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .633333%). Round final answer to the nearest whole dollar. Do not use a negative sign with your answer. Investment 1 Investment 2 Investment 3 Investment 4 Annual interest rate 7% 6% 5% 8% Investment period in years 5 6 5 10 Compounding periods Quarterly Annually Semiannually Monthly Payment per compounding period $10,000 $36,000 $20,000 $2,000 First payment Beg. of period End of period End of period Beg. of period Present Value Answer Answer Answer AnswerThe process that determines the present value of a single payment or stream of payments to be received is ________. A. compounding B. discounting C. annuity D. lump-sum