Determine the size of the periodic payment of the following ordinary general annuity Future Value Payment Period Term of Annuity Interest Rate Conversion Period $21,000 three months 3 years 11.6% semi-annually

Determine the size of the periodic payment of the following ordinary general annuity Future Value Payment Period Term of Annuity Interest Rate Conversion Period $21,000 three months 3 years 11.6% semi-annually

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 20E

See similar textbooks

Related questions

Q: Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the…

A: Annuity payment (P) = $ 700 Period = 11 Years Semi annual periods (n) = 11*2 = 22 Annual interest…

Q: Use Table 12-2 to calculate the present value (in $) of the annuity due. (Round your answer to the…

A: Here,

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: Given information: Present value : $500,000 Rate of interest : 4% Time period : 12 years

Q: For the following ordinary annuity, determine the size of the periodic payment. Future Payment…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: Find the present value and the amount of Future value of the general annuity. Payment term Interest…

A: As you have asked question with multiple parts , we will solve the first 3 parts as per the policy…

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value…

A: Present value of annuity = $20000 Quarterly rent (Q) = $900 r = 4.7% per annum = 1.175% per quarter…

Q: ind the amount accumulated FV in the given annuity account.

A: find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

Q: Find the periodic payment for the following annuity due. Future Value Present Value $12,600 Payment…

A: Present value (PV) = $12,600 Monthly period (p) = 84 (i.e. 7 years * 12) Semiannual interest rate =…

Q: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: Future value of of annuity at end of year payments (ordinary annuity) formula is: r is APR of…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: Given: Future value = $400,000 Interest rate = 6% Years = 18

Q: Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term…

A: Converting 7% compounding quarterly rate to effective rate Effective rate of interest = [(1+…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: Working note:

Q: Use Table 12-2 to calculate the present value (in $) of the annuity due. (Round your answer to the…

A: Present value annuity formula=P×1-11+rnr where, P=Annuity payment=$700r=rate per…

Q: Calculate the future value of the following ordinary simple annuities. Round the answers to the…

A: Solution:- When an equal payment is made each period at end of period, it is called ordinary simple…

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: Future value of annuity = $18500 Annual payment (A) = $770 Compounding period is quarterly. Hence,…

Q: Find the interest rate of annuity compounded quarterly on 9,500 whose periodic deposit is 300 every…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: Here, the amount of periodic withdrawals is monthly payment. Hence, monthly interest rate should be…

Q: For the following ordinary annuity, determine the size of the periodic payment. Present Payment…

A: Future value (FV) = $14,900 Interest rate = 8.9% Quarterly interest rate (r) = 8.9%/4 = 2.225%…

Q: Use Table 12-1 to calculate the future value (in $) of the ordinary annuity. (Round your answer to…

A: Annuity payment (P) = $ 6500 Payment = Semi annual Period = 5 Years Semi annual periods (n) = 5*2 =…

Q: Present value (in $) of an annuity due Annuity Payment Payment Frequency Time Period (years)…

A: The Present value of annuity due is calculated using the Present Value of Annuity due formula.

Q: An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year.…

A: Given, Payment made is $8 starting from the end of year 12th. Since payment is starting from the…

Q: Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the…

A: Semi annual payment (C) = $ 700 Period = 11 Years Semi annual period (t) = 11*2 = 22 Nominal rate =…

Q: Find the future value for the ordinary annuity with the given payment and interest rate PMT=$700;…

A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, P = Periodic payment $700 r = rate of…

Q: An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i…

A: PRESENT VALUE OF PERPETUITY FORMULA: present value =periodic cashflowinterest rate per period

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: 1) Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: Future Value: The worth of the current asset at a future date in which computation is based on the…

Q: An annuity provides for 20 annual payments. The first payment of $ 100 is made immediately and the…

A: Payments made at the beginning of each period are called Annuity due.

Q: t accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1.…

A: Future Value = Annuity Payments × [(1+r)n -1/ r]

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: Find the amount accumulated FV in the given annuity account. (Assume end- of-period deposits and…

A: Time value of money analyses the value of a unit of money at various times. We can say that a…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: PMT refers to payment per period. It is inflow or outflow occurs after a particular time period.

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: GIVEN, PV= $300,000 R=6% N=11 M=12

Q: Find the present value of the following ordinary deferred annuity. Periodic Made Payment Period…

A: The problem relates to the time value of money wherein we should compute first the annual effective…

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: Present value (PV) = $10,300 Monthly payment (P) = $330 Interest rate = 3% Monthly interest rate (r)…

Q: For the following ordinary annuity, determine the size of the periodic payment Present Payment…

A: As per the given information: Present Value = $12,200 Interest rate = 8.8% compounded monthly Time…

Q: For the following ordinary annuity, determine the size of the periodic payment. Present Future Value…

A: Future value of annuity The future value of annuity refers to the total value of the investment at…

Q: Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present…

A: present value of an ordinary annuity says that how much money is needed today to fund the future…

Q: Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to…

A: Annual payment (P) = $ 6000 Number of annual payments (n) = 20 Annual interest rate (r) = 4%

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: Present value (in $) of an annuity due Nominal Annuity Payment Time Interest Present Value Payment…

A: When the annuity or the payment is due at the beginning of each period is referred as annuity due.

Q: Use Table 12-2 to calculate the present value (in $) of the annuity due. (Round your answer to the…

A: The present value is the present worth of the annuity amount that has to paid or received in the…

Q: Find the future value of the following ordinary annuity. Periodic Payment Interest Rate Payment…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Time 20 years…

A: Deposit = 1000 End of each year Time Period = 20 years Interest Rate = 3%

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

Q: Find the future value of the following ordinary annuity. Periodic Payment - 1775 Payment Interval…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value…

A: Given: Present value = $9,500 Payment = $1,000 Payment interval = 6 n = 2 Rate of interest (r) =…

Question

100%

Determine the size of the periodic payment of the following ordinary general annuity
Future Value Payment Period Term of Annuity Interest Rate
Conversion
Period
$21,000
three months
3 years
11.6%
semi-annually

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Amount of an Annuity Beginning December 31, 2023, 5 equal annual withdrawals are to be made. Required: Using the appropriate tables, determine the equal annual withdrawals if 25,000 is invested at an interest of 12% compounded annually on: 1. January 1, 2023 2. December 31, 2023 3. January 1, 2020
Present Value of an Annuity Ralph Benke wants to make 8 equal semiannual withdrawals of 8,000 from a fund that will earn interest at 11 % compounded semiannually. Required: How much would Ralph have to invest on: 1. January 1, 2019, if the first withdrawal is made on July 1, 2019 2. July 1, 2019, if the first withdrawal is made on July 1, 2019 3. January 1, 2019, if the first withdrawal is made on January 1, 2022
Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits?
Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. Annuity Payment Annual Rate Interest Compounded Period Invested 1. $4,000 7% Annually 5 years 2. 9,000 8 Semiannually 3 years 3. 3,000 8 Quarterly 2 years
Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $2900 1 year 6 years 7% quarterly
Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. Annuity Payment Annual Rate Interest Compounded Period Invested 1. $3,000 7% Annually 6 years 2. 6,000 8 Semiannually 9 years 3. 5,000 12 Quarterly 5 years
Present value (in $) of an annuity due AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Present Valueof the Annuity $1,200 every year 5 5.9 annually $
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 50,000.00
Find the term of the following ordinary general annuity. State your answer in years and months (from 0 to 11 months). Present Value Periodic Payment Payment Interval Interest Rate Compounding Period $14,500 $2300 six months 3.5% annually The term of the annuity is year(s) and month(s)?
Determine the future value of the annuity due: Periodic Payment Nominal Compounding Payment ($) Interval Term Rate (%) Frequency 750 6 months 6½ years 9 Quarterly
Find the future value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $1675 1 year 13 years 8% quarterly
Find the future value of the following ordinary annuity. periodic payment $95 payment interval 1 year term 5 years interest rate 11 % conversion period quarterly