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- Ordinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%. Inputs: PMT = $1,000 N = 5 I/YR = 15% PV = $3,352.16 FV= $6,742.38 How would the PV and FV of the above annuity change if it were an annuity due rather than an ordinary annuity? PV annuity due = ?Exactly the same adjustment is made to find the FV of the annuity due. FV annuity due = ?K1. The present value of a 6-year annuity is X. The annuity pays 5 at the end of the first month, 10 at the end of the second month, and for each month thereafter the payment increases by 5. The annual nominal interest rate is 7% compounded quarterly. Calculate X.Q3 If the present value of an ordinary, 8-year annuity is $6,100 and interest rates are 8.0 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) PRESENT VALUE
- 1. The present value of an annuity of P5,000 to be received at the end of each of the next six months for 6 years at a 4% annual rate would be? a. P3,950 b. P26,210 c. P52,875 d. None of the above 2. What is the value of P 100 perpetuity if interest is 7%? a. P 1,429 b. P12,321 c. P 21,350 d. None of the aboveH3. Say you borrow $6,000 at 10 percent and agree to make equal annual end-of-year payments over 4 years. To find the size of the payments, the lender determines the amount of a 4-year annuity discounted at 10 percent that has a present value of $6,000. Please show proper step by step calculation
