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A: There are two types annuity: Ordinary Annuity Annuity Due
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A: Solution: Annuity due is means payment is made at the beginning of period. Further ordinary annuity…
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A: Given, A= $12,800 rate = 8% years = 7
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A: Annuity basically refers to the money that is insured by the organization to get each year after the…
Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…
A: Future value is the future worth of cash flows that have occurred in the past or present.
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A: In annuity payment, interest is calculated on the remaining outstanding balance.
Q: Annuities where the payments occur at the beginning of each time period are.called refer to annuity…
A: An annuity is a series of uniform cash flows occurring at equal interval over a period of time.
Q: A series of equal payments occurring at equal interval of time, known as. Ans: ____________ A type…
A: Annuities are one of the main means of securing steady cash flows i.e. an equal amount of dollar…
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A: Present value of annuity is the current value of the future payments that are calculated using the…
Q: Complete the ordinary annuity. (Please use the following provided Table.) (Do not round intermediate…
A: Semi annual payment amount (P) = 12,700 Period = 9 Years Number of semi annual payments (n) = 9*2 =…
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A: An annuity is a series of equal payments made at regular intervals. When these payments are made at…
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A: The two common types of annuities are annuity due and ordinary annuity Ordinary annuity is an…
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A: Given: Case Amount of annuity Interest rate Years A $12,000 7% 3 B $55,000 12% 15 C $700…
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A: Using the formula, A = P[{(1 + r/n)^nt} -1] / (r/n) where, periodic deposit (P) = $30 each month…
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A: Solution: An "annuity" is a sequence of equal payments made at equal time periods.
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A: Introduction : In simple words, an annuity refers to the stream of payments made by an entity to…
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A: In annuity payments, each of the periodical payment is equal which contains some interest and some…
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A: Annuity refers to series of equalized payments that are made either at start or end of specific…
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A: An annuity is a sequence of cash flows that contain a fixed amount at each periodic time interval…
Q: Ordinary annuity payment. Fill in the missing annuity in the following table for an ordinary annuity…
A: Annuity is the regular payment received from an investment at a given rate of interest.
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Q: The payments are made monthly and its compounding periods is quarterly." What kind of annuity is…
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A: Annuity immediate also refers to ordinary annuity. In this the payments are made at the end of every…
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A: Annuity can be annuity due or ordinary annuity
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A: Present Value of annuity = P*{1-{1/[(1+r)^n]}/r} Where, P= Annuity r = annual interest rate n = no.…
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A: The concept of annuity is the regular payments made by the depositor for earning return or payments…
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A: A deferred annuity is a contract that promises to pay the owner a regular income or a lump sum, at…
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A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…
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A: Future value is the expected value of the current sum at a future date.
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- General Term used to defined a series of equal payments occurring at equal interval of time. Inflation Discount Interest AnnuityIn annuity payments, the amount of interest which is included in each of the equal periodical payments is: a. decreasingb. increasingc. not determinabled. equalA series of equal payments occurring at equal interval of time, known as. Ans: ____________ A type of annuity where the first payment is made at the end of the first period. Ans: ___________________ A type of annuity whose sum is infinite. Ans: _____________ A type of annuity where the first payment is made at the beginning of the first period. Ans: ______________ A type of annuity where the first payment is made later after the end of the first period. Ans: ___________________
- Annuity due is an annuity whose payment is due at the END of each period. TRUE OR FALSE?An annuity in which the first cash flow occurs at the beginning of the period is called a/an: Oordinary perpetuity. growth annuity. Oordinary annuity. annuity due.With a deferred ordinary annuity, the first payment was made one or more periods prior. the first payment begins one or more periods later. the last payment is made first. the first payment is made last.
- Choose the letter of the correct answer and write it on the space provided _____ 1. A sequence of payments made at equal (fixed) intervals or periods of time. A. Annuity C. Ordinary Annuity B. Annuity due D. Simple Annuity ______2. The amount of each payment. A. Payment interval C. Annuity Payment B. Periodic Payment D. Time payment ______3. It is time between the purchase of an annuity and the start of the payments for the deferred annuity. A. Period of deferral C. Payment interval B. Annuity payment D. Period of payment ______4. A type of annuity in which the payments are made at the end of each payment interval. A. Annuity due C. General Annuity D. Simple Annuity D. Ordinary Annuity ______5. Compounding quarterly means the interest period is A. every year C. every 6 months B. every 4 months D. every 3 months ______6. In a monthly payment of P2,000 for 5 years that will start 7 months from now, what will be the period of deferral? A. 7 B. 5 C. 4 D. 6 ______7. A loan is given an…For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Annuity Amount i = n = 1. ? $2,400 8% 5 2. 533,082 140,000 ? 4 3. 583,150 180,000 9% ? 4. 530,000 75,502 ? 8 5. 235,000 ? 10% 4Which of the following describes how to calculate abond’s issue price?Face Value Interest Paymentsa. Present value of single amount Future value of annuityb. Future value of single amount Present value of annuityc. Present value of single amount Present value of annuityd. Future value of single amount Future value of annuity
- Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:The present value of an annuity due is determined on the last day of the first annuity period. on the first day of the last annuity period. on the last day of the last annuity period. on the date of the first cash flow in the series.For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.)