Solve for the FVA or PVA value of the following annuity DUE s; Payment amt $ 12,000.00 $ 60,000.00 Solve for... #Pmts/year years Annual rate Answer; Future Value 1 20 8.00% Present Value 1 20 8.00% Future Value 1,000.00 12 20 12.00% Present Value $ 10,000.00 12 20 12.00% How does it impact the values when it is an annuity due rather than regular annuity?
Q: Future Value of an Annuity Find the future value of these ordinary annuities. Compunding occurs…
A: Future value of annuity = P x ((1+i)^n - 1)/i Annual Payment = $500Number of Payments = 8Interest…
Q: Compute the missing variable for each of the following alternatives of investments to accumulate…
A: The present value can be converted the future value using the technique of compounding, while the…
Q: uity X and Y provide the following payments: End of Year Y 1-10 1 K 11-20 2 21-30 1 K Annuity X and…
A: Annuity is a stream of constant regular payments.
Q: Find the future value and present value using the ordinary annuity and. No. Principal Rate Mode of…
A: 4. Calculate the future value of ordinary annuity (FVA) using the formula. Here, 'P' represents the…
Q: Hello! Please help me with as much of this as you can. Thank you! Present Value of an Annuity of $1…
A: Net Present Value = Present Value of Cash Inflows - Initial Investment Cash Payback = Initial…
Q: Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present…
A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…
Q: Use the ordinary annuity formula to determine the accumulated amount in the annuity. $500…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Find the present value and the amount of Future value of the general annuity. Payment term Interest…
A: As you have asked question with multiple parts , we will solve the first 3 parts as per the policy…
Q: If P500 is invested at the end of each year for 6 years at an effective annual interest rate of 7%.…
A: Periodic Payment = P500 Time Period = 6 Years Interest Rate = 7%
Q: Determine the present value and total amount of an annuity with 6 payments of P120,000 each made at…
A: Annual payment (P) = P120,000 Interest rate (r) = 15% Number of annual payments (n) = 6
Q: Find the difference between the sums of an annuity due and an ordinary annuity for the following…
A: An annuity is a series of cash flows wherein an equal amount is paid every period. An ordinary…
Q: Present value of an annuity Consider the following cases, Amount of annsity Interest rate Ferind…
A: i) Case A Annuity (PMT) = $12000 Interest rate ( r) = 7% Number of years n) = 3 Using the formula…
Q: Use the ordinary annuity formula shown to the right to determine the accumulated amount in the…
A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…
Q: $11,000 is to be paid at the end of each year in a legal settlement. The payments end after 9 years.…
A:
Q: Use the formula for the present value of an ordinary annuity or the amortization formula to solve…
A: The annuity is the regular cash flows series of payments and receipts are known as the annuity. It…
Q: Present value of an annuity) What is the present value of the following annuities? a. $2,400 a…
A: Present value of annuity is calculated by discounting all the future cash flows at a given discount…
Q: s: Solve edch fhe follOwing Find the present value and the amount of Future value of the general…
A: Present Value/Future Value: It is the current value of a future sum of money at a specified rate…
Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…
A:
Q: EXERCISES O Compute for the future galue of annuity given the Fixed Payment (PMT), Interest Rate…
A: Note: It is a case where the number of questions asked is more than one and no specified question is…
Q: Find the Unknown Value Future Value Present Value Payment Term Compound Interest Rate 1 5,800…
A: Annuity due explains a series of equal cash flows paid at regular time in the beginning. The first…
Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: # Payment and frequency (PMT) Time in years (n) Interest rate and compound frequency…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Classify the financial problem. Assume a 9% interest rate compounded annually. Deposit $200 at the…
A: Solution:- When an equal amount is deposited each year, it is called annuity. The accumulated value…
Q: Find the future value and present value using the ordinary annuity and. No. Principal Rate Mode of…
A: An ordinary annuity is a series of regular payments paid at the end of each period, such as monthly…
Q: A continuous 5-year annuity pays at the rate of e-0.01t-+0.5t dollars per annum at time t (0 <t <…
A: Present value is the value of an asset in today’s time. It tells how much money is worth now.…
Q: Present Value of an Annuity Determine the present value of $240,000 to be received at the end of…
A: a) Compute the present value using the present value table: Year Amount received Present value…
Q: Present value (in $) of an annuity due Annuity Payment Payment Frequency Time Period (years)…
A: The Present value of annuity due is calculated using the Present Value of Annuity due formula.
Q: Present Value of an Annuity Determine the present value of $340,000 to be received at the end of…
A: Present value of an annuity An Annuity is a stream of regular periodic payments made or received for…
Q: Calculating Annuity Cash Flows For each of the following annuities, calculate the annuity payment.…
A: Annuity cash flows is a cash flow which leads to a same increase or decrease in the cash flows of a…
Q: n the information given int he following case, determine the number of years that the given oridinay…
A: Initial amount (PV) = $ 26,800 Annual cash flow (P) = 6,561 Rate of return (r) = 6% Number of year =…
Q: (F). Indicate whether it is a simple annuity or general annuity. Periodic Payment R Туре of Annuity…
A: The present value refers to the value of future cash flows and periodic cash flows at the present…
Q: Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest…
A: Required: Compute the annual interest rate in each case.
Q: Classify the financial problem. Assume a 4% interest rate compounded annually. Find the value of a…
A: Future value deals with the value of money at a future date which is different from the value today…
Q: Table Completion. Find the indicated value from the following ordinary annuity. Write your answer on…
A: Ordinary Annuity:- Ordinary Annuity is a fixed-term deposit or withdrawal that consists of a series…
Q: Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1.…
A: Future Value = Annuity Payments × [(1+r)n -1/ r]
Q: Find the present value of an annuity P10,000 payable at the en quarter for 5 years if the rate of…
A: Present value of annuity can be found from the present value factor and annuity payment.
Q: Individual Assessment 1.b: Simple Annuity Due Directions: Calculate the future value of #1 & 2 and…
A: The Future Value of Annuity Due is the total future value of each cash flow which is made at the…
Q: Find the future value and present value of the annuity due. Principal Rate Mode of Payment Term No.…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
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.
Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…
A: Annuity refers to series of equalized payments that are paid or received at start or ending of…
Q: What is the future value of $117,000 invested for 5 years at 14% compounded monthly?
A: Componded Monthly: When a investment is componded monthly then the interesr will be calculated on…
Q: What is the future value of an ordinary annuity with annual payments of $1200 for 20 years at 10%…
A: An annuity is a constant stream of cash flows. An ordinary annuity is one in which cash flows takes…
Q: Present Value of an Annuity. Find the present values of these ordinary annuities. Discounting…
A: A. COMPOUNDED ANNUALLY ROUNDED 2 DECIMAL F G INTEREST RATE 8.00% NPER (n) 12…
Q: Individual Assessment 1.a: Simple Ordinary Annuity Directions: Calculate the future value of #1, 2,…
A: Future value includes the deposits made and the interest accumulated and present value includes the…
Q: Find the future value and present value using the ordinary annuity and. No. Principal Rate Mode of…
A: Given, The payments to calculate the future value and present value of annuity.
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…
Answers with explanation
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what is the present value of $16,491.00 (rounded to the nearest dollar) to be received at the end of each of the next four years, assuming an earnings rate of 12%? a.$59,450 b.$16,491 c.$50,083 d.$39,611 Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a…Use these present value tables to answer the question that follow.Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, if an investment is made now for $23,500 that will generate a cash inflow of $8,000 a year for the next four years, what would be the net present value of the investment, assuming an earnings rate of 10%? a. $16,050 b. $25,360 c. $23,500 d. $1,860
- Use these present value tables to answer the question that follow.Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the present value of $8,000 to be received one year from today, assuming an earnings rate of 12%?Use these present value tables to answer the question that follow.Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the internal rate of return of an investment of $227,460 that would generate an annual cash inflow of $60,000 for the next five years?Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the present value of $17,508 (rounded to the nearest dollar) to be received four years from today, assuming an earnings rate of 10%? a.$17,508 b.$13,866 c.$55,500 d.$11,958 how to do this 1? Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a…
- Solve for the FVA or PVA value of the following annuity DUEs; Solve for… Payment amt #Pmts/year years Annual rate Answer; Future Value $ 12,000.00 1 20 8.00% Present Value $ 60,000.00 1 20 8.00% Future Value $ 1,000.00 12 20 12.00% Present Value $ 10,000.00 12 20 12.00%Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $54,000 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its present value? Group of answer choices $279,396 $291,703 $250,193 $273,380Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $324,000 at the end of 3 years, what is its present value? Group of answer choices $279,396 $291,703 $273,380 $250,193
- Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $54,000 every 6 months for 3 years, what is its present value? $279,396 $250,193 $273,380 $291,703Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $108,000 at the end of each year for 3 years, what is its present value? Group of answer choices $291,703 $273,380 $279,396 $250,193For 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) Present Value Annuity Amount i n1. ? $ 3,000 8% 52. $ 242,980 75,000 ? 43. 161,214 20,000 9 ?4. 500,000 80,518 ? 85. 250,000 ? 10 4 Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $12,000 in student loans. She asks for your help in determining the…
