Directions: Solve the present value P, and amount F of the following ordinary annuities. Quarterly payments of P2000 for 5 years with interest rate of 8 % compounded quarterly. 2. Semi-annual payments of P8000 for 12 years with interest rate of 12 % compounded semi-annually 3. Daily payments of P50 for 30 days with interest rate of 20 % compounded daily. 1.

Q: What equal annual payment series is requiredto repay the following present amounts?(a) $14,000 in…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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A: Semi annual payment (P) = $25,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%

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A:

Q: 4. Quarterly payments of P2,000 for 5 years with an interest rate of 8% compounded quarterly.…

A: 4. To calculate the future value: FV=Principle(1+rate)n For quarterly payments:…

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A: “Since you have asked multiple question, we will solve the first question (activity 1.1) and 2…

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A: Hi There, Thanks for posting the questions. As per Q&A guidelines, the solution for the first…

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Q: An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an…

A: given, ordinary annuity: A=p 1811 n =15 r=10%

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

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Q: ind the future values of the following ordinary annuities.

A: Future Value of Ordinary Annuity: It refers to the future worth of the annuity cash flows made at…

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Q: Directions: Find the present value P and future valueF of the following ordinary annuities. Write…

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A: The future value of annuity is the value of all the payments at a specific date in the future.

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Q: . Find the equivalent interest rate per payment interval j, present value P and amount F.  1.…

A: The equivalent interest rate formula will be: Equivalent rate = New compounding period ×1 + RateOld…

Q: Gary King will deposit $27500 into an account today that earns 13% per year compounded annually.…

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.