Q: At what interest rate will money: a. Double itself in 10 years? b. Triple itself in 10 years? c.…
A: Rate of interest refers to the amount charged by the lender of money to the borrower for using the…
Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…
A: Present value of annuity payment - it means present value of future annual equal payment made to a…
Q: Approximately what interest rate is needed to double an investment over eight years?
A: In the given question we require to compute the interest rate which will make our investment double…
Q: How many years would it take an investment to double at 10% annual interest?
A: An amount is compounded at an interest rate to calculate its future value. To calculate the number…
Q: What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an…
A: When the Cash Flows occurs at the end of each period, the annuity is called a Regular Annuity. In…
Q: What is the future value of the annuity stream, if the frequency of compounding is 2 times per year?
A: Future Value of Annuity: It refers to the future worth of the periodic payments made at the end of…
Q: erpetuity is a type of annuity which has infinite period of payments. The present value of a…
A: Present Value: It represents the present worth of future cash flows. Thus, it is calculated by…
Q: four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how…
A: Present value =10000 interest rate =5% Period =4 years Present value FACTOR =1-(1.05)-4/0.05…
Q: What's the future value of a 5%, 5-year ordinary annuity that pays $100 each year? If this was an…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: Why would you prefer to receive an annuity due for $10,000 per year for 10 yearsthan an otherwise…
A: An ordinary annuity is an annuity which pays the cash flows at the end of the period. Under the…
Q: What is the present value of a constant perpetuity of $17 per year if the discount rate is 10…
A: Present Value: The present value (PV) is the present sum of a series of fixed payments. The series…
Q: What's the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this was an…
A: For ordinary annuity, payment takes place at the end of every period and for annuity due, payment…
Q: What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10…
A: Given: Annual cash flow (A)=$1000 Number of years (n) =9 years Interest rate(r) = 10% = 0.10
Q: How long will an amount of money double at a simple interest rate for 10% per annum?
A: Solution: For money to double we need 100% return on principal Annual return using simple interest =…
Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…
A: present value of a perpetuity = Annual payment/Discount rate
Q: If the interest rate on an account is 11.5% compounded annually, approximately how many years will…
A: The calculation table for the compounding is attached below.
Q: If you want an investment to double in three years, what annual interest rate must it earn?
A: Given: An investment doubles in 3 years So, let initial investment be 100 Future value = 200 (twice…
Q: The present value of a perpetuity is equal to the payment on the annuity, PMT, divided bythe…
A: Perpetuity is the annuity which is paid for infinite time period. In other words, it refers to the…
Q: What is the future value of an 11%, 5-year ordinary annuity that pays $350 each year? Do not round…
A: Formula: Future value of Annuity = P x [ ( 1 + R )N - 1 ] / R N = Number of years R = Rate of…
Q: What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%?
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an…
A: Calculation of future value of annuity:
Q: what's the future value of the same annuity due?
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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Approximately, what is the value of (P) if F=114200, n=12 years, and i= 11% per year?
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an…
A:
Q: For an ordinary annuity with five annual payments of $100 and a 10% interest rate,how many years…
A: Ordinary annuity: An ordinary annuity is a sequence of equivalent payments made at last of…
Q: What is the future value of a $50 annuity payment over 20 years if the interest rates are 6%?
A: In the present question we require to calculate the future value from the following details: Present…
Q: If $120 doubles in approximately 13 years, what is the interest rate?
A: Interest rate refers to the rate at which an investor make investment today so that return on the…
Q: What compound interest rate is equivalent to a 15%-per-year simple interest rate over a 20-year time…
A: When interest for the period is added to the principal, the interest rate is compounding interest…
Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…
A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5
Q: If the future value of an ordinary, 7-year annuity is $7,900 and interest rates are 9.0 percent,…
A: Future value of an ordinary annuity = $7,900 Interest rate = 9%
Q: What is the present value of a perpetuity consisting of equal payments of $66 every 3 months, where…
A: The present value of the perpetual annuity is the current worth of a cash flow series continuing…
Q: How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years?…
A: A perpetuity is payment for ever An annuity is payment at the end of the period for a limited period…
Q: For an ordinary annuity with a five annual payments of $100 and a 10% interest rate, how many years…
A: Ordinary Annuity involves fixed and equal annual payments at the end of consecutive periods over a…
Q: If the future value of an ordinary, 7-year annuity is $9,900 and interest rates are 9.0 percent,…
A: Given, Future Value = $9,900 Interest Rate = 9.0% Term = 7 years Formula: Future value of annuity…
Q: What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an…
A: Annuity Amount= $300 each year Rate of Interest (r)= 7% Time period= 5 years
Q: What is the PV of a perpetuity paying $6 each month, beginning next month, if the monthly interest…
A: Present value of a Perpetuity is equal to the PMT / Annuity value divided by the rate of interest…
Q: What is the future value of a $500 annuity payment over eight years if interest rates are 14…
A: In this question we need to compute the future value of annuity payment. We can solve this question…
Q: If $120 doubles in approximately 13 years, what is the interest rate?
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The future value of an annuity due is: one period after the final payment. one period before the…
A: In finance, the term "annuity" represents a series of equivalent periodic cash flows at equal time…
Q: Suppose you are going to receive $10,000 per year for 5 years. The appropriate interest rate is 11%.…
A: Here, Annuity Amount is $10,000 Time Duration is 5 years Interest Rate is 11%
How can a perpetuity, which has an infinite maturity, have a duration as short as 10 or 20 years?
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- Why would you prefer to receive an annuity due for $10,000 per year for 10 yearsthan an otherwise similar ordinary annuity?How much more is a perpetuity of $ 1000 worth than an anuity of the same amount for 25 years? Assume an interest rate of 15% and cash flows at the end of each period?How long will an amount of money double at a simple interest rate for 10% per annum?
- What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10 percent? What would be the future value if it were an annuity due?What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?
- How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume an interest rate of 10% and cash flows at the end of each period.What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is 6.5%?How long will an amount of money double at a simple interest rate for 2% per annum? _______ years
- What is the present value of a perpetuity consisting of equal payments of $66 every 3 months, where the first payment occurs 3 months from now, and the interest rate is 12% p.a.?For an ordinary annuity with a five annual payments of $100 and a 10% interest rate, how many years will the first payment earn interest?The present value of a perpetuity is equal to the payment on the annuity, PMT, divided bythe interest rate, I : PV = PMT/I. What is the future value of a perpetuity of PMT dollars peryear? (Hint: The answer is infinity, but explain why.)