Chapter 4, Question 2. Please see attached. The second image is a similar question with answers Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity:Number ofAnnualPayments orPresent ValueAnnuityFuture ValueInterest RateYears6%$344.05$ 1,939.44 (Round to the nearest cent.)$ 162,233.26 (Round to the nearest cent.)$ 40,534.07 (Round to the nearest cent.)$ 3,322,162.06 (Round to the nearest cent.)1918%$1,314.55274.5%$799.313601.2%$551.55 Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity:Number ofAnnualPayments orYearsPresent ValueAnnuityFuture ValueInterest Rate68%$325.83(Round to the nearest cent.)Data Table(Click on the following iconin order to copy its contents into a spreadsheet.)Number ofAnnualPayments orPresent ValueAnnuityFuture ValueInterest RateYears8%$325.831713%$1,312.26262%$673.873200.7%$425.77

using FV formula of excel to calculate the future value, =FV(rate,nper,pmt,[pv]) rate = rate of…

Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity: E Number of Annual Payments or Present Value Annuity Future Value Interest Rate Years 6 8% $325.83 (Round to the nearest cent.) i Data Table (Click on the following icon 9 in order to copy its contents into a spreadsheet.) Number of Annual Payments or Present Value Annuity Future Value Interest Rate Years 6 8% $325.83 ? 17 13% $1,312.26 $673.87 ? 26 2% 320 0.7% $425.77 %24

Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity: E Number of Annual Payments or Present Value Annuity Future Value Interest Rate Years 6 8% $325.83 (Round to the nearest cent.) i Data Table (Click on the following icon 9 in order to copy its contents into a spreadsheet.) Number of Annual Payments or Present Value Annuity Future Value Interest Rate Years 6 8% $325.83 ? 17 13% $1,312.26 $673.87 ? 26 2% 320 0.7% $425.77 %24

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 20E

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Value 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?
Present value of an annuity Consider the following case. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Amount of annuity Interest rate Period (years) $26,000 9% 4 a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity—ordinary or annuity due—is preferable? Explain why.
Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 10 9% 0 $286.87 ? 18 16% 0 $1,397.76 ? 30 2.5% 0 $721.92 ? 280 1% 0 $553.71 ? Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 10 9% 0 $286.87 $nothing (Round to the nearest cent.) 18 16% 0 $1,397.76 $nothing (Round to the nearest cent.) 30 2.5% 0 $721.92 $nothing (Round to the nearest cent.) 280 1% 0 $553.71 $nothing (Round to the nearest cent.)
Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 ? $0.00 $600.00 $2,386.09 18 ? $13,278.73 $354.57 $0.00 40 ? $0.00 $1,872.79 $40,000.00 60 ? $266,564.09 $500.00 $0.00 Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 nothing% (Round to two decimal places.) $0.00 $600.00 $2,386.09 18 nothing% (Round to two decimal places.) $13,278.73 $354.57 $0.00 40 nothing% (Round to two decimal places.) $0.00 $1,872.79 $40,000.00…
Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 5 8% 0 $213.22 ? 16 15% 0 $3,317.78 ? 29 4.5% 0 $674.57 ? 300 1% 0 $2,538.86 ? Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 5 8% 0 $213.22 $nothing (Round to the nearest cent.)
Give typing answer with explanation and conclusion to all parts If $387674 is used to purchase an annuity earning 5.5% compounded monthly and paying $3102 at the end of each month, what will be the term of the annuity? Include the final, smaller annuity payment in the total. (Just state total months as a number, not years and months) What is N? What is I/Y? What is C/Y? What is P/Y? What is PV? What is PMT? What is FV?
Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity. Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 5 10% 0 $329.44 ? 15 18% 0 $1,277.33 ? 29 4% 0 $712.45 ? 260 0.7% 0 $425.09 ? Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 5 10% 0 $329.44 $nothing (Round to the nearest cent.)
We can now use the following formula to find the present value of the account where the annuity payments are $400 each month. present value = table factor ✕ annuity payment The table factor was determined to be 21.67568. Before using the above formula, we must add 1 to the table factor since this is an annuity due. Thus, the table factor to use in the formula is 21.67568 + 1 = . Substitute the values into the formula, rounding the result to the nearest cent. present value = table factor ✕ annuity payment = ✕ 400 = $ Therefore, to receive annuity payments of $400 at the beginning of each month for 2 years, the amount that should be deposited now into an account earning 6% interest compounded monthly, to the nearest cent, is $ .
Solve by using formulas. (Round your answer to the nearest cent.) Ordinary Annuity AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity (in $) $4,000 every 6 months 9 9.0 semiannually $
Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what is the present value of $16,491.00 (rounded to the nearest dollar) to be received at the end of each of the next four years, assuming an earnings rate of 12%? a.$59,450 b.$16,491 c.$50,083 d.$39,611 Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a…
Use these present value tables to answer the question that follow.Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, if an investment is made now for $23,500 that will generate a cash inflow of $8,000 a year for the next four years, what would be the net present value of the investment, assuming an earnings rate of 10%? a. $16,050 b. $25,360 c. $23,500 d. $1,860
Use these present value tables to answer the question that follow.Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the internal rate of return of an investment of $227,460 that would generate an annual cash inflow of $60,000 for the next five years?