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Determine the value of the perpetuity
annual amount $20,000
discount rate 8%
Step by step
Solved in 3 steps
- Cash Flow Amounts On January 1, 2019, Philip Holding invests 40,000 in an annuity to provide 8 equal semi-annual payments. Interest is 10%, compounded semiannually. Required: Compute the equal semiannual amounts that Philip will receive assuming that the first withdrawal is to be received on: July 1, 2019 January 1, 2019 July 1, 2022 January 1, 2024Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?Determine the present worth and the accumulated amount annuity consisting of payment of P120 000 each the payment made at the beginning of each year. Money is worth 15% compounded annually.
- Determine the present worth of annuity consisting of 6 payments of 120,000 each payment are made at the beginning of each year. Money is worth to 15% compounded annually. What is the presenr worth value? A. 521,258.61 B. 520,258.61 C. 523,258.612. Consider the data in the following table: Perpetuity Annual amount discount rateA 100,000 10B 3,000 6 Determine the present value of each perpetuity.What endowment is required to establish a perpetuity with an ongoing cost of $6,000 atthe end of each month if interest is 6.0% compounded annually in perpetuity?A. $1,325,562.62B. $1,232,652.72C. $1,365,256,24D. $1,562,897.26
- find the principal value of perpetuity amount of 18,000 with a nominal rate or 5% compounded quarterly.Engineering Economics If money is worth 1.07%, determine the present value of perpetuity of P4,489 payable annually, with the first payment due at the end of five yearsWhat is the present worth of the followingseries of payments?(a) $1,500 at the end of each year for 10 years at7.25% compounded annually.(b) $4,900 at the end of each year for seven years at9.75% compounded annually.(c) $1,000 at the end of each year for 15 years at8.2% compounded annually.(d) $19,500 at the end of each year for eight years at7.5% compounded annually
- In the information given int he following case, determine the number of years that the given oridinay annuity cash flows must continue inorder to provide the rate of return on the intial amount. Initial amount: $26,800 Annual Cash Flow: $6,561 Rate of Return: 6%From Ordinary Annuities; Calculate parts A, B & C assuming they are Annuities Due. A.$600 per year for 12 years at 8% B.$300 per year for 6 years at 4% C.$500 per year for 6 years at 0%Find the accumulated value of ₱ 5,000.00 in 3 ¼ years if it is invested at 15% compounded semiannually. note: find the compound amount and compound interest
