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?

Q: Vusa has invested $420000 in an annuity that pays interest at the rate of 3.6% per annum,…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment…

A: Periodic payment = 20,000 Interest Rate = 18%/12 = 1.5% per month N = 15 years i.e. 180 months…

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: An ordinary annuity pays 7.08% compounded monthly. (A) A person deposits $150 monthly for 30 years…

A: Interest rate is 7.08% Compounded monthly Part-(A)  Deposits per month is $150 Time period of…

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: A 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments…

A: First payment = $ 1000 Next 5 payments = $ 1000 Growth rate in payments after 6 payments = 5.06%…

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: A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…

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

Q: An annuity offers a payment of $5000 at the beginning of every three months for twenty years.…

A: An annuity is a lump-sum payment that you will receive each year for the remainder of your life. An…

Q: An engineer is entitled to receive P25,000 at the beginning of each year for 18 years. If the rate…

A: Given,  Payment is P25, 000 Rate 4% Number of years 18.

Q: An annuity with a cash value of ​$12,000 pays ​$2,050 at the beginning of every six months. The…

A: Annuity:  An annuity is the series of payments which is received or paid for a certain period of…

Q: n annuity pays $500 per year for 12 years beginning one year from today. What is th alue of the…

A: The present value of annuity is the equivalent value that is equal to payment to be done considering…

Q: PNC's 30-year annuity is scheduled to pay off a loan taken out today at a 5% annual effective…

A: given, year (n) = 30 rate = 5% first annuity at t=10, amount= $10,000 then annuity increase by $5000…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

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: 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: An annuity with a cash value of $9,800 pays $880 at the beginning of every three months. The…

A: a) No. of payment =12.08 or 13 b) size of final annuity payment = $880

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

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: In this question we need to compute the present value of the following annuity streams.

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

A: The more is compounding the more is the effective interest rate and more is the future value of…

Q: A 30-year annuity is arranged to pay off a loan taken out today at a 5% annual effective interest…

A:

Q: Assume that you make quarterly payments of $ 750 into an annuity paying 9% interest compounded…

A: Quarterly payment = $750 Interest rate = 9% Quarterly rate = 0.09/4 = 2.25% Time =10 years Quarterly…

Q: The future value of an ordinary annuity of $1,000 each year for 10 years, deposited at 3 percent, is

A: Payment (PMT) = $ 1,000 Tenure (N) = 10 years Rate (R) = 3%

Q: certain annuity pays 80.00 at the end of every 3

A: The nominal rate can be computed as follows :

Q: Money is worth 12% compounded quarterly. What is the future value of the annuity payir arterly for…

A: Future value of money grows with interest rate and period of deposit and while present value…

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: An annuity provides for 20 annual payments. The first payment of $ 100 is made immediately and the…

A: Payments made at the beginning of each period are called Annuity due.

Q: Assume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded…

A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…

Q: What is the present value of an annuity consisting of payments of $800 every month for 8 years, with…

A: Present value is the current worth of the amount that  is deposited or received in some future date…

Q: Find the amount and present value of an ordinary annuity of P5,400 payable quarterly for 7 years if…

A: Solution:- When an equal amount is paid each period, it is called ordinary annuity. So, we have,…

Q: For $10,000, you can purchase a five-year annuity that will pay $ 2,504.57 per year for five years.…

A: Duration of an annuity means the time period for which the annuity will provide return to the…

Q: uppose the amount of an ordinary annuity that consists of 10 yearly payments of 150$ , provided that…

A: An ordinary annuity is a series of equal payments made at the end of consecutive periods over a…

Q: What is the future value of an annuity with monthly deposits of ₱175 for 11 years at an interest…

A: Since deposits are made at the end of the month, this will be an ordinary annuity. We need to keep…

Q: A 10-year annuity pays P900 four times in year. The first P900 will be paid five years from now. If…

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

Q: Assume that you make monthly payments of $ 675 into an ordinary annuity paying 6% compounded…

A: The amount after 12 years can be calculated as future value of annuity

Q: An annuity that pays $950 at the end of each month for 18 years sells for $105,000 What was the…

A: Quarterly Compounded Nominal Interest Rate: Quarterly compounding outperforms semi-annual…

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: What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment…

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

Q: In the provided formulas, P is the deposit made at the end of each compounding period, r is the…

A: Using the future value annuity formula: Rate of interest per quarter (r) = 7.25%/4 = 0.018125 Number…

Q: A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: An increasing annuity makes annual payments, and the first payment occurs in 6 months. The annuity…

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

Q: Determine the value of an ordinary annuity if $290 is deposited each month into an account earning…

A: In order to find the future value of an annuity, one can use excel and use FV function to determine…

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: Robert wants to have $2,300 at the end of every three months for 8 years. The bank pays 8% interest,…

A: Here, To Find: Present value of annuity due =?

Q: What is the accumulated amount of a 9-year annuity paying P 1,075at the end of each year, with…

A: Using Excel FV function

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

A: We need to compute the future value of both the annuities and compare. Future value can be…

Q: The present value of an ordinary annuity of $350 each year for five years, assuming an interest rate…

A: The present value of a fixed amount that will be received or paid, over a specified time period, is…

Q: An ordinary annuity pays 8.16% compounded monthly. A person deposits $200 a month for 30 years and…

A: We use PMT function in excel or financial calculator to calculate monthly withdrawal  interest…