If (P) dollars are invested at the end of each year in an annuity that bears interest at an annual rate (r), the amount in the account will be (A) dollars after (n) years, where: n = log [Ar / P + 1] / log (1 + r) If $ 5,200 is invested each year in an annuity that earns 9% annual interest, when will the account be worth $ 25,000? Round to the nearest tenth.

Q: What is the present worth of a 3 years annuity paying P3,000 at the end of each year, with interest…

A: Annuity is a series of uniform cash flows over a period of time.

Q: What is the future value of a series of $4,500 annual payments received at the end of each of the…

A: Future value is the value of an asset which grows to some new value. Annuity due means the payment…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: Future value of an annuity is $55000 Annual interest rate is 5.5% per year compounded monthly Time…

Q: The future value is $

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

Q: If the cost of capital is 12%, what is the present value of a perpetuity that pays $11,000 at the…

A: The present value of perpetuity can be calculated as ratio of cash flows and the discount rate

Q: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…

A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…

Q: Suppose ₱2500 is deposited at the end of each year for the next 5 years in an account paying 7.5%…

A: Annual deposit (P) = P 2500 Annual interest rate (r) = 7.5% Number of annual payments (n) = 5

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: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: In the given problem, the future value of the annuity is given which is $70,000 Time is 14 years…

Q: Assume that you deposited RM5,000 at the end of each year for 3 consecutive years in an account that…

A: The future value of annuity can be calculated with the annuity equation.

Q: Which will provide the largest yield on an annuity after 30 years with 6% annual interest,…

A: Given, N = 30 Years r = 6%

Q: What is the present value of the annuity if it is paid over three years (starting immediately)?

A: For the first year, payment = $15,000 For second year = $15,000 x 0.970 = $14,550 For third year =…

Q: Suppose P1500 is deposited at the end of each year for the next 6 years in an account paying 8%…

A: Formula:  Periodic Deposit at the end of the Year,…

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at…

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

Q: if money is worth 8% compounded quarterly, what is the present and future value of an ordinary…

A: The present and future value can be computed with the help of annuity function

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: IF A PERPETUITY IS WORTH P 500,600.00 AND WITH AN INTEREST OF 16.25%, WHAT IS THE ANNUITY? IF MONEY…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: A one-year annuity that pays $100 semi-annually will starts its payment in 6 months from now. APR is…

A: Present Value of  Ordinary Annuity refers to the concept which dictates the discounted value of a…

Q: What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. Present…

Q: If $75,000 is used to purchase an annuity that pays $950 a month, and if the interest rate is 9%…

A: Price of Annuity = 75,000 Monthly Compounding Annuity Payment per month = 950 Interest Rate = 9%/12…

Q: An annuity with a cash value of ​$12,000 pays ​$880 at the beginning of every three months. The…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: If $1000 is deposited in a savings account at the beginning of each of 10 years and the account…

A: Working note:

Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: Using excel PMT function

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. $2,300 per…

A: A concept that implies the future worth of the money is lower than its current value due to several…

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: If an amount of $10,000 is deposited into a savings account at an annual interest rate of 4%,…

A: Here in this question we are required to calculate the compounded interest of investment after 8…

Q: What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be…

A: As a fist step, let's shifts ourselves to the end of t  = 10 years.Annuity, A = $ 2,500; n = number…

Q: What is the accumulated value after five years of payments of $20000 made at the beginning of each…

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

Q: What are the present worth and the accumulated amount of a 10 year annuity paying P10,000 at the end…

A: In this we need to calculate the present value of annuity.

Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, r= rate of interest i.e. 9%/12 = 0.75% or…

Q: the payments occurred 5. Caiculating Annuity Cash Flows. If you put up $20,000 today in exchange for…

A: Annuity is the no. of payments which are equal in size and made at equal interval of time. Person…

Q: What is the present value of a $1,000 60-month annuity, starting 6 months from today, if r is 6% APR…

A: Present Value of Deferred Annuity refers to the concept which dictates the discounted value of a sum…

Q: Assume that Kikay Company is to make annual investment of P500,000 for five years. The interest for…

A: Annuity means where regular payment is made at the end of regular period and full amount with…

Q: ow at 9.6%?

A: Here, P = $10,800 i = 0.096 n = 11 Now, Future Value of Annuity (FVA) is FVA=P x(1+i)n-1i…

Q: What is the present value of a S1,000 annuity tor 10 years, with the lirst payment occurring at the…

A: Payments occurring at the end of year means its a ordinary annuity.

Q: Find the future value of an ordinary annuity of $80 paid at the end of each quarter for 5 years, if…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: What is the present value of an ordinary annuity of $400 each month for eight years, assuming an…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: Suppose that $500  is deposited at the end of every quarter for 6 years in an account that pays 8%…

A: To calculate the value of the annuity, we can either use excel or fv calculator where R= RATE OF…

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: Harper takes out a loan of $126,500,000, which is to be repaid by annual payme for 25 years. The…

A: A loan simply refers to the amount borrowed from a lender. The lender in such a scenario might be a…

Q: You expect to make equal payments of $ 9020.00 at the end of each of the next 6 years (ordinary…

A: Future value of ordinary annuity = Annual payment x [(1 + i)n - 1]/i

Q: present value of a perpetuity with annual cash flows of $1,000 each year is $15,000. What is the…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: A certain sum of money is invested at 2 years at 12% compounded quarterly. If the sum is P43,000,…

A: Present value is equivalent value of money that is today of the future money to be received based on…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.