In the provided formulas, P is the deposit made at the end of each compounding period, r is the annual interest rate of the annuity in decimal form, n is the number of compounding periods per year, and A is the value of the annuity after t years.                                                                                                                                    Periodic Deposit                                                                                                                     $1500 at the end of every three months                                                                         Rate                                                                                                                                         7.25% compounded quarterly                                                                                           Time                                                                                                                                        6 years                                                                                                                                  a. The value of the annuity is $....                                                                                      b. The interest is $.....

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: The present value of an annuity is the current value of future payments from an annuity, assuming a…

Q: If $417.00 is deposited at the end of each year for 6 years into an ordinary annuity earning 4.08%…

A: Here, Yearly Deposit is $417.00 Time Period is 6 years Interest Rate is 4.08% Compounding Period is…

Q: The FV of an annuity where payments are made at the beginning of the year is $6,456 and the FV of an…

A: Let annual Payment = P Interest Rate =r Time Period(n)  = 5

Q: Calculate the future value of an ordinary annuity of which periodic deposit is P7,000.00 at 8%…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

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

Q: Find the future value and the present value of an annuity of P 15,000 payable at the end of every…

A: The deferred annuity is a series of cashflows which starts after m periods i.e. first cashflow is…

Q: An annuity pays an amount of $102.00 each period for 11 periods, and the present value is $798.00.…

A: Discount rate can be calculated by calculating the present value FACTOR and from that we will get…

Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity eaming 9.52%…

A: Using excel

Q: Find the present value of ar prdinary annuity whose periodic payment of 15,000.00 is payable at th…

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

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: Time taken can be calculated using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: A daily perpetuity of $3.33 is to be valued when the effective annual rate of interest is 8.25%.…

A: Effective annual rate =8.25% or 0.0825 Daily rate =( 0.0825/365 ) Daily perpetuity = $ 3.33

Q: Find i​ (the rate per​ period) and n​ (the number of​ periods) for the following annuity. Quarterly…

A: Solution:- An equal amount deposited every period is known as annuity. Now, in annuity, rate per…

Q: Find the present value of an ordinary annuity with payments of 13687 every 6 months for 3 years at…

A: The present value of annuity can be calculated with the concept of time value of money

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In this we need to find out monthly payment required for sinking fund.

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: 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: Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)

A: Ordinary Annuity: When the annuity payments are paid at the end of the period, such annuity payments…

Q: What is the accumulated amount of a 9-year annuity paying P 1,109at the end of each year, with…

A: The accumulated amount after 9 years will be the future value of the annutiy.

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

A: The nominal rate can be computed as follows :

Q: Find i (the rate per period) and n (the number of periods) for the following annuity. Semiannual…

A: Given no. of years 6 and rate as 7.7% compounded semiannually.

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: To calculate the Required payment of sinking fund, PMT function in the excel can be used. PMT(rate,…

Q: Formulas In the provided formulas, Pis the deposit made at the end of each compounding period, ris…

A: Using the formula,   A = P[{(1 + r/n)^nt} -1] / (r/n) where, periodic deposit (P) = $30 each month…

Q: If you have a 13-year annuity paying $209 quarterly beginning in 6 years when interest is 3.13%…

A: First payment takes place in the beginning of 6th year. The payments are made quarterly.

Q: An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i…

A: PRESENT VALUE OF PERPETUITY FORMULA: present value =periodic cashflowinterest rate per period

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

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

Q: Find the value of the annuity and the interest. Round to the nearest dollar.   A=P(1+r)t−1r…

A: The value of the annuity is the value of regular payments in the future at a given interest rate. An…

Q: For the following ordinary annuity, determine the size of the periodic payment. Present Payment…

A: Present value of annuity = $12700 n = 9 years 3 months = 111 months r = 4.3% per annum = 0.3583% per…

Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: If the present value of an ordinary, 6-year annuity is $8,500 and interest rates are 9.5 percent,…

A: Given: Present value (PV)= $ 8500 Interest rate (r)= 9.5% Number of years (n) = 6

Q: A certain annuity pays $108 at the end of every 3 months. If the present value of the annuity is…

A: Annuity means a set of a finite number of payments that are made in equal time intervals and the…

Q: Handwritten: An 11-year annuity pays $1,800 per month, and payments are made at the end of each…

A:

Q: For the following ordinary annuity, determine the size of the periodic payment. Present Future Value…

A: Future value of annuity The future value of annuity refers to the total value of the investment at…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: For calculating the future value of annuity, following formula shall be used: = Amount of deposit *…

Q: 1.) Calculate the future value of an ordinary annuity of which periodic deposit is Php 8,600 at 8%…

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

Q: Find the present value of an annuity with periodic payments of $2,000, for a period of 10 years at…

A: Periodic payment (P) = $ 2000 Period = 10 Years Number of semiannual periodic payments (n) = 10*2 =…

Q: A 13-year annuity pays $1,400 per month, and payments are made at the end of each month. The…

A: The Present value of annuity can be calculated using PVfunction in excel.It can be divided into 2…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Future value of annuity is the total amount of periodic series of deposits at a specified time in…

Q: An investor is currently making a regular deposit of PHP 4,125.27 at the start of each period, to…

A: The worth of money gets depreciated over a period of time states the concept of the time value of…

Q: suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest…

A: Annual saving (A) = $2700 r = 8% compounded continuously n = 25 years

Q: Find the difference between the sums of annuity due and ordinary annuity for the following data…

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

Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…

A: Net present value is defined as the discounted cash flow technique which applies to weight the items…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

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…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.