Find the lump sum deposted today that will yeld the same total amount as payments of $13.000 at the end of each year for 12 years, at an interest rate of 7% compounded annually The lunp sum is Round to the rearest cent)

Q: What amount must be set aside now to generate payments of $60,000 at the beginning of each year for…

A: The series of payments discussed here is a form of an annuity due wherein an equal payment is made…

Q: If money is worth 5% compounded semi-annually, find the present value of a sequence of 12…

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

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

A: An annuity is a type of financial product offered by insurance companies and financial institutions.…

Q: Find the present value (in dollars) of an annuity that pays $9,000 at the end of each 6-month period…

A: The present value of an ordinary annuity(payment at end) can be calculated by using this equation.…

Q: Find the present value of an annui P6,000 a year for 8 years that is def or 2 years, if the money is…

A: Deferred annuity means that it will start later that means so will be having slightly less value…

Q: Find the present worth of perpetuity of Php10,000 semi annually with an interest rate of 10%…

A: Solution Given Semiannual annuity 10000 Interest rate 10% quarterly First payment…

Q: What amount must be set aside now to generate payments of $20,000 at the beginning of each year for…

A: Working note:

Q: annually. Payments will be made at the end of each year. Find the total value of the annuity in 16…

A: Future Value of Annuity: It represents the future worth of the present annuity cash flow stream. It…

Q: Determine the amount of money that must be invested now (time 0) at 6% nominal interest, compounded…

A: given i=6% compounded monthly Annuity = 10000 per year n = 10 years, starting 8 years from now we…

Q: What amount must be set aside now to generate payments of $30,000 at the beginning of each year for…

A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years

Q: What amount must be set aside now to generate payments of $40,000 at the beginning of each year for…

A: The formula to calculate present worth is given below: Here, i is interest rate. n is number of…

Q: Calculate the amount of money that needs to be invested today at 7% compounded semi-annually to…

A: The effective interest rate per month is calculated below:

Q: Determine the amount of money that must be invested now​ (time 0) at 5​%nominal​ interest,…

A: Nominal rate = 5% Annuity = $8,000 Time of annuity = 15 years   First calculate the effective…

Q: Find the present value (in dollars) of an annuity that pays $9,000 at the end of each 6-month period…

A: The present value of annuity is the current worth of periodic annuity payments. The annuity…

Q: A sum of money invested now at 10 percent compounded semi-annually is to provide payments of $1500…

A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…

Q: Use the sinking fund formula shown to the right to determine the monthly payment needed to…

A: A sinking fund can be referred to as a type of fund specially created to pay off the debts.…

Q: What lump sum deposited today at 8% compounded quarterly for 10 years will yield the same final…

A: First we need to calculate future value of semi annual deposits and use this future value to…

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: 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: You have accumulated $1,793,836 for your retirement. How much money can you withdraw for the next 14…

A: Given that:Accumulated amount=$1793836Years=14Rate=9.90 % per year(Compounded annually)

Q: What present amount of money must be deposited at 11% interest compounded annually to grow to…

A: Formula to calculate compound interest is: A = P(1+r/n)^nt Where A is the future value, P is the…

Q: Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly…

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: the loan is allotted is 20 years. What sum of annuities still remains to be paid just after payment…

A: PV of A amount paid for first 8 years = A(1-(1+r)^-8)/r PV of 3A amount paid for the next 5 years =…

Q: Calculate the future value of end-of-quarter payments of $5,000 made for 5 years into an investment…

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

Q: A payment of $12,000 is due in 1 year and $10,200 is due in 2 years. What two equal payments, one in…

A: Compounding is a process that uses an appropriate rate or CVF to calculate the future value (FV) of…

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

A: Given information: Principle amount = $27,500 Rate of interest = 13% Period = 5 years

Q: Find the lump sum deposited today that will yield the same total amount as payments of $15,000 at…

A: Answer -   Formula for Lump Sum deposited Today -  P = R ( 1 - (1+i)-n/ i)

Q: Calculate the present value of a P20,000 annuity paying yearly for eight years, with the first…

A: Annual payment (A) = P 20000 n = 8 years r = 5%

Q: calculate the principal sum which, if deposited at 9.5% compound interest, will grow to £400 after…

A: Interest rate (r) = 9.5% compounded Future value (A) = £400 Time (n) = 3 years Principal (P) = ?

Q: Find the amount that should be invested now to accumulate the following amount, if the money is…

A:

Q: 1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6…

A: Using excel PV function

Q: A payment of $13,735 is due in 1 year, $19,500 is due in 4 years, and $8,900 is due in 7 years. What…

A: Payment due in year 1 (P1) = $13735 P4 = $19500 P7 = $8900 Interest rate = 5.5% monthly compounded

Q: You plan to accumulate R450,000 over a period of 12 years by making equal annual deposits in an…

A: Annuity due is a type of annuity under which payment is deposit at starting of the each period and…

Q: If $87,000 is invested in an annuity that earns 5.6%, compounded quarterly, what payments will it…

A: The interest rate is 5.6%, compounded quarterly. Interest rate per quarter is (5.6% ÷ 4) = 1.4%. The…

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Given That: P.V=$23000 Payment is done in 3 equal payment Rate of interest= 4.25% Duration= 6 years…

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

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

Q: $360,000 is invested in a perpetuity at an interest rate of 5.2% per annum. a. Find the monthly…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Find the present value of the following cash flow: receive $7 every year for 28years with the first…

A: Given Information: Amount to be received every year = $7 for 28 years Fist payment received in 9…

Q: Find the lump sum deposited today that will yield the same total amount as payments of 250 at the…

A: This is a case of determining present value of an annuity.  Annuity value (FV) = $250 Number of…

Q: Determine the present value of $170,000 to be received at the end of each of four years, using an…

A: Solution a:   Amount PV Factor Present Value First Year $170,000.00 0.94787 $161,138 Second…

Q: What sum must be deposited today at 18 percent per year compounded monthly if the goal 5 years from…

A: Time value of money is one widely used by the management to evaluate the project and to determine…

Q: Compute the amount of money to be set aside today to ensure a future value of $1,400 in one year if…

A: Present value is the value of an asset in today’s term. In other words it is the amount of money…

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

A: Here compounding is given quarterly. So, there will be four quarters in a year. Divide rate by 4 to…

Q: payment of $16,000 is due in 1 year and $11,700 is due in 2 years. What two equal ayments, one in 3…

A: Effective interest rate is that is rate after considering the impact of compounding and more then…

Q: Find the present value of an annuity due that pays $2000 at the beginning of each quarter for the…

A: The quarterly amount is $2,000. The annual interest rate is 6.6%, compounded quarterly, So, interest…

Q: If l invest 25,363 today and expect a reimbursement every 6 months with a ROR of 0.09 compounded…

A: Let the reimbursement expected semiannually = A The amount of 25363 is the present value of annuity.…