Answered: Find the interest rate of annuity…

Find the interest rate of annuity compounded quarterly on 9,500 whose periodic deposit is 300 every end of three months for 6 years and 9 months.

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 25E

See similar textbooks

Related questions

Q: What is the present value of a deferred annuity with a deferral period of 17 years at 6.7%…

A: Monthly annuity payment (M) = $1250 Interest rate = 4.78% compounded semiannually n = 10 years = 120…

Q: A 20 year annuity pays $50 at the beginning of each month during the first year, $55 at the…

A: Time period = 20 years Nominal annual interest rate = 6% Increase in the amount on yearly basis =…

Q: future value and the present value of an annuity of 15,000 payable at the end of every three months…

A: Given information : Annuity $ 15,000.00 Total payments 30 First payment due 7 Interest…

Q: Find the present value of each ordinary annuity. Payments of $1400 are made semiannually for 8 years…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Find the amount of an annuity that consists of 20 quarterly payments of $700 each into an account…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Identify the following types of Annuity from the options ( A to D) given below : Payments of $ at…

A: An annuity is a series of equal payments and receipts lasting for some specific period. The annuity…

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

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Find the amount and present value of an annuity of 540 payable every end of the month at 7%…

A: Annuity payments are a series of regular payments that an investor makes into an investment account…

Q: The future value is $

A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n - 1) /interest…

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

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

Q: Find the difference between the sums of an annuity due and an ordinary annuity for the following…

A: An annuity is a series of cash flows wherein an equal amount is paid every period. An ordinary…

Q: How much interest is included in the future value of an ordinary simple annuity of $1,650 paid every…

A: The question can be solved as follows:

Q: Find the present value of ar prdinary annuity whose periodic payment of 15,000.00 is payable at th…

A: Present value of annuity is the equivalent value of annuity today considering the interest rate and…

Q: Assume that you make quarterly payments of $ 475 into an annuity paying 3% interest compounded…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…

Q: Calculate the future value of an ordinary annuity where $360 is deposited and compounded quarterly…

A: The ordinary annuity of the payments would be considered as payment made at the end of the year, and…

Q: Find the present value of an ordinary annuity with payments of 13687 every 6 months for 3 years at…

A: The present value of annuity can be calculated with the concept of time value of money

Q: Determine the size of the periodic payment of the following ordinary general annuity Future Value…

A: The computation as follows:

Q: Find the present value of an ordinary annuity with deposits of 23,958 every 6 months for 4 years at…

A: The formula to compute present value:

Q: y-year annuity pays $940 per month at the end of each month. For the first seven years, the nominal…

A: As the compounding increases the interest rate become more effective and more is future value and…

Q: Find the future value of an ordinary annuity with a $260 monthly payment at 8 1/4% interest for 15…

A: Interest rate = 8 1/4% Interest rate = 8%+0.25% = 8.25% ------------------------------ Monthly…

Q: Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)

A: Ordinary Annuity: When the annuity payments are paid at the end of the period, such annuity payments…

Q: At the beginning of each period for 6 years Scott Sullivan invested $500 quarterly at 4% interest…

A: Annuity Due: A constant amount of money that is paid or received at regular, periodic intervals over…

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

A: FV of annuity = P * [ (1+r)^n - 1 ] /r Where, P = Periodic payment i.e. $1700 n = no. of…

Q: If you have a 13-year annuity paying $209 quarterly beginning in 6 years when interest is 3.13%…

A: First payment takes place in the beginning of 6th year. The payments are made quarterly.

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

A: There are two types of annuities, i.e., ordinary annuity and annuity due. An ordinary annuity is a…

Q: A annuity pays $200 at the end of each month for 5 years and $300 at the end of each month for the…

A: PV of annuity with continuous compounding is to be determined. Here, PMT1 = $200 Number of periods…

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 future value of an annuity due of $100 each quarter for 2 1/2 years at 12% compounded…

A: Formula: FV = { P [ ( 1 + r )N - 1 ] / R } ( 1 + r ) P = Principal value R = Interest.

Q: A certain annuity pays $108 at the end of every 3 months. If the present value of the annuity is…

A: Annuity means a set of a finite number of payments that are made in equal time intervals and the…

Q: Calculate the future value of an ordinary annuity consisting of monthly payments of $450 for five…

A: An ordinary annuity is an annuity where the periodic payment occurs at the end of the period.

Q: Handwritten: An 11-year annuity pays $1,800 per month, and payments are made at the end of each…

Q: Find the accumulated value of an annuity due of $1500 payable at the beginning of every month for…

A: GivenP=$1500r=8%=0.0812n=9 years=9*12=108 monthswe have a…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Future value of annuity is the total amount of periodic series of deposits at a specified time in…

Q: If P44,873 is deposited each year for 6 years at an interest rate of 14.225% compounded semi…

A: Here we will use the concept of time value of money. The concept of time value of money states that…

Q: Find the accumulated value of an annuity-immediate which pays 1 at the end of each half-year for…

A: Compounding is a technique which is used to compute the future value (FV) of present cashflows by…

Q: Find the future 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 present value of annuity due of 7,000 payable at the beginning of each quarter for six…

A: given, A= 7000 N = 6 M=4 R=14%

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: What is the accumulated sum of each of the following streams of ordinary annuity payments? $35…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

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

Find the interest rate of annuity compounded quarterly on 9,500 whose periodic deposit is 300 every end of three months for 6 years and 9 months.

Video Video

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Find the interest rate compounded quarterly on 9,500 whose periodic deposit is 300 everyend of three months for 6 years and 9 months
Find the interest rate compounded quarterly on 9,500 whose periodic deposit is 300 every end of three months for 6 years and 9 months
Find the amount and present value of an annuity of 540 payable every end of the month at 7% compounded monthly for 4 years and 5 months
find the present value of annuity due of 7,000 payable at the beginning of each quarter for six years if the interest rate is 14% compounded quarterly.
Find the accumulated value of an annuity due of $1500 payable at the beginning of every month for nine years at 8% compounded monthly.
Find the present value of the annuity that will pay $1,500 every 6 months for 9 years from an account paying interest at a rate of 8% compounded semiannually.
Handwritten: An 11-year annuity pays $1,800 per month, and payments are made at the end of each month. The interest rate is 11 percent compounded monthly for the first six years and 10 percent compounded monthly thereafter. What is the present value of the annuity?