You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate is 8 percent. What is the future value? O a. $60,255.0 O b. $96,255.3 O c. $46,255.8 d. $50,255.2

Q: The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly.…

A: Amount put in savings bank = $ 10,000 Interest Rate(r) = 16% compounded quarterly = 16/4 = 4% Total…

Q: . Your client deposits $5 million in a savings account that pays 5 percent per year compounded…

A: Following is the answer to the question

Q: What is the aggregate present value of $500 received at the end of each of the next three years,…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: The future value of $900 saved each year for 10 years at 8 percent. (Round your discount factor to 3…

A: C = Annual cash flow i.e. $900 r = Interest rate i.e. 0.08 or 8% n = Period i.e. 10 years FV =…

Q: The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at…

A: Perpetuity is a situation where a stream of Cashflow payments continues indefinitely or is an…

Q: Find the following values (compunding/discounting occurs annually): A. An initial $500 compounded…

A: A. Future value = Amount*(1+rate)^years Future value = $500*(1+6%)^1 Future value = $500 * 1.06…

Q: What is the present value of $2,100 to be received 14 years from now assuming a discount rate of…

A: Given information: Future value of amount is $2,100 Number of years is 14 Discount rate is 3.7% for…

Q: If money is worth 3 ½% compounded monthly, find the compound discount if 12,200 is discounted for 2…

A: Here, Amount is 12,200 Time Period is 2 years and 11 months Time Period in Months will be: =24…

Q: What is the value today of receiving six annual payments of $400,000, beginning one year from now,…

A: Using the scientific calculator, we can calculate the NPV of the cash flows.  Enter the value as…

Q: You are golng to receive three perpetuities. Perpetulty 1 will pay $450 each year, with the first…

A: There are 3 annuities. We need to compute the present value of these annuities first and then we can…

Q: What is the present value of a $500 payment made in four years when the discount rate is 8 percent?

A: We need to calculate the present value from below given details in this question: Future value =…

Q: What is the present value of $452,000 to be received in 6 years from today.  Assume a per annum…

A: Compound interest is one of the form of interest in which interest is charged on both principal as…

Q: A 16-year annuity pays $1,900 per month, and payments are made at the end of each month. The…

A: The question is based on the concept of present value of future annuity payments . Annuity payments…

Q: Find the present value of $4,600 under each of the following rates and periods: (Round your final…

A: Present value is the worth of the amount in present times that is expected to be received in future…

Q: An insurance policy provides a benefit of $21,500 twenty two years from now. Alternatively, the…

A: Amount to received after 22 years 21,500 Payment per year is $590

Q: What is the future value of $200 received today and deposited at 8 percent compounded semi annually…

A: Formulas: Future value = Amount *(1+rate)^years

Q: The present value of $500 to be received at the end of each year for seven years at a discount rate…

A: Computation of present value:

Q: Čalculate the compounded future value at EOY 20 of 20 annual payments of $5,000 each into a savings…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is…

A:

Q: Suppose you are a beneficiary designated to immediately receive P8674 each year for 10 years,…

A: Annuity means a series of annual payments are being made or received. Annuity can be ordinary…

Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…

A: Present value is the sum of discount value of all future cash flows.

Q: Two annuities have equal present values and an applicable discount rate of 7 percent. One annuity…

A: Given, discount rate = 7 percent

Q: If (P) dollars are invested at the end of each year in an annuity that bears interest at an annual…

A: The future value of a regular annuity amount can determine with the help of the future value of the…

Q: The present value of $500 to be received at the beginning of each year for seven years ata discount…

A: The formula to compute present value annuity due is as follows:

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: Time Period = 20 Years Interest rate = 5% Present Value = $180,000

Q: What is the present value of a $1,500 payment made in nine years when the discount rate is 8…

A: In this question we are required to compute the present value from following details: Annual payment…

Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…

A: Information Provided: Term (number of payments) = 20 Payment amount = $5000 Interest rate = 6%

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: GIVEN, PRESENT VALUE=$1000 future value=$1276.30 n=5

Q: Calculate the present value of Rs.800 a) Received at the end of five years b) Received one year…

A: Note: It is a situation where multiple sub-parts have been asked, so we are allowed to solve the…

Q: A sum of $ 10, 000 is used to buy a deferred perpetuity-due paying $671.69 every six months forever.…

A: The present value of a perpetual annuity is the present worth of a cash flow that will continue till…

Q: What is the present value of the following payment stream, discounted at 8% annually: $1,000 at the…

A: The present value concept of the time value of money states the current value of money that is being…

Q: Dind the future value of $12,308 deposited at 10% compunded quarterly for 3 years. Round your answer…

A: Given that, Present Value (PV)=$12,308 Duration(n)=3*4=12 periods Rate of interest(i)=10%/4=2.5% or…

Q: Find the present values of these ordinary annuities. Discounting occurs once a year. $400 per year…

A: It is essential for the management to determine the present value of all the future cash flows while…

Q: What is the present value of the following annuities? 70 a year for 3 -years discounted back to the…

A: Annuity referes to the payments made at regular interval. It could be ordinary annuity when payments…

Q: What is the value today of receiving five annual payments of $500,000, beginning one year from now,…

A: Present value = Cash Flow 1/(1 + r)1 + Cash flow 2/(1 + r)2 + Cash Flow 3/(1 + r)3 + Cash flow 4/(1…

Q: Find the present value of an annuity due that pays $3000 at the beginning of each quarter for the…

A: Annuity due: Annuity due makes payments at the beginning of the year. Ordinary annuity: Ordinary…

Q: ind the amount and present value of an annuity due of 125 every quarter for 9 years and 6 months, if…

A: In this we have to find out the present value of annuity.

Q: Find the present value of the following annuities: 100 starting at time 8 and increasing by 100…

A: Present value of a future amount With future value (FV), periodic interest rate (r) and period (n),…

Q: What is the present value of a $750 payment made in three years when the discount rate is 5 percent?

A: In this question we need to compute the present value of $750 payment in three years.

Q: A company offer annual payments of $1675 at the end of each year for the next FIVE years. a) What…

A: Annuity is a concept of regular equal payments made at equal interval of time. It is used to…

Q: You are comparing two annuities with equal present values. The applicable discount rate is 6.65…

A: The first annuity is an annuity due as its payments starts on the first day of each year. The second…

Q: If you deposit $2600 in order to get annual revenues each year up to 7 years, at a rate of return…

A: Capital recovery factor is annuity of the investment made today over the period of time at the given…

Q: What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year?…

A: End of Year payments =850 Nominal interest rate = 8% Present value of perpetuity=Equal cash flow…

Q: Find the present values of these ordinary annuities. Discounting occurs once a year. $400 per…

A: Annual payment (C) = $ 400 Annual interest rate (R) = 10% Period (N) = 10 Years

Q: Determine the present value of an ordinary annuity paid annually for 25 years if payments are 1.200$…

A: Ordinary Annuity is one of the two classification of annuities where first annuity transaction is…

Q: You expect to receive P1,000 at the END of each of the next 3 years. You will deposit these payments…

A: Following is the computation of Future value at the end of the third year

Q: A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of this…

A: Future of Annuity Due = Annuity * [ { ( 1 + Quarterly rate )Number of quarters - 1 } / Quarterly…