Answered: The future value of a P20,000 annuity…

Name: The future value of a P20,000 annuity due deposited at 8 percent compo
Uploaded: 2022-11-04T13:34:50.000Z
Channel: Bartleby
Description: The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is

Business

Finance

The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 5P

See similar textbooks

Related questions

Q: The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent…

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

Q: Determine the present value of an Annuity Php 1,000.00 for 25 quarterly installment that will start…

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

Q: Find the present value of each ordinary annuity. Payments of $1400 are made semiannually for 8 years…

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

Q: Based on a 5% annual effective interest rate, find the present value of a 10-year annuity with level…

A: This is deferred annuity as the first payment is being done sometime later in the future (6th year).…

Q: 4. The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of…

A: The future value is the amount that is received after a certain period of time. Given information:…

Q: What is the accumulated amount of five-year annuity paying P6,000 at the end of each year, with…

A: The worth of a present asset in the future based on a projected growth rate is referred to as future…

Q: Quarterly payments of P2,000 for 4 years with interest rate of 6% compounded quarterly. Find the…

A: Present value of ordinary annuity is the present value of the future payment of annuity at a given…

Q: In a sequence of 10 annual payments of P2,000 each, the first one is due at the end of 6 years. Find…

A: Calculation of Present Value of Annuity Year end Payment Present value factor at 6% Present…

Q: Find the present value of the following annuities: 1. 100 payable every month for 10 years if the…

A: Present value is referred as the current value of future sum of funds or the cash streams that are…

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: An annuity pays $100 at the end of each of the next 10 years and 200 at the end of each of the five…

A: The present value(PV) for annuity payments will the sum of current worth of individual payment. It…

Q: P1,500 is invested every 4 months at 3.8% per annum compounded quarterly. How much will the annuity…

A: The Compound Interest of an investment is used for a longer period of time. In the compound…

Q: A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is…

A: Computation of perpetuity at t=4:

Q: The present value of a $1,000 per year perpetuity at an annual rate of 10% is $10,000. What is the…

A: Answer:

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: find the present worth of a perpetuity of p25000 payable quarterly if money is worth 5% compounded…

A: Perpetuity refers to series of equalized payments that are made either at start or end of definite…

Q: Find the future amount and present value of the annuity of P270 payable every end of the month at 9%…

A: Present value considers the time value of money concept. It considers the discounting factor at…

Q: Find the present value of deferred annuity of P 900 every 3 months for 5 years that is deferred 3…

A: Deferred annuity is a series of payments which starts after a certain period of time called…

Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: A perpetuity pays $100 each year, with the first payment scheduled two years from now. Assume that…

A: Amount of $100 will be paid by a perpetuity and that will be started from year 2 (two year from…

Q: . Annuities Find the 8-year future value of an annuitywith a contribution of $100 at the end of each…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest…

A: Calculation of future value of annuity: Answer: Future value of annuity is $20,724.67

Q: At the end of each quarter-year, for 6 years, $1,200 is deposited into an investment paying 3.4%…

A: At the end of each quarter-year, for 6 years, $1,200 is deposited into an investment paying 3.4%…

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

A: Annual deposit = RM 5,000 Number of annual deposit = 3 Interest rate = 10% Semi annual interest rate…

Q: Determine the present value and total amount of an annuity with 6 payments of P120,000 each made at…

A: The interest is compounded quarterly at rate of 3.75%.

Q: The future value of $200 received today and deposited at 8 percent compounded semi-annually for…

A: Future value is the value of an asset that will grow over time. It can be found out by multiplying…

Q: Find the present value of an ordinary annuity of 2,000 pesos payable annually for 9 years if the…

A: PMT = 2,000 pesos NPER = 9 x 4 RATE = 5%/4 Formula used:

Q: solve the given annuity: P1,500 deposited at the beginning of each month for 2 years at 9%…

A: Since it is not mentioned in the question, it is solved for present value as well as future value…

Q: find the present value and the amount of an annuity of $25 payable monthly for 10 years if money…

A: Present value is defined as the current value of the sum of the funds (future) or the cash flows…

Q: a. Find the present value of a deferred annuity of P30000 every three months for 3 years that is…

A: Present Value(PV) refers to value of sum at current date which would be received or paid in future…

Q: Find the future value of an annuity due of $100 each quarter for 2 1/2 years at 12% compounded…

A: Formula: FV = { P [ ( 1 + r )N - 1 ] / R } ( 1 + r ) P = Principal value R = Interest.

Q: Determine the present value of an annuity of $600 paid monthly for a period of 15 years at 4.50% APR…

A: To calculate the present value we will use the below formula Present value = P*[1-(1+r)-n]/r Where…

Q: In a sequence of 10 annual payments of 2,000 pesos each, the first one is due at the end of 6 years.…

A: An annuity is a series of regular and equal cash flows. The present value is the discounted value of…

Q: If money is worth 8% compounded quarterly, calculate the present value of an annuity of Php 1,000…

A: Quarterly payment (Q) = Php 1000 Interest rate (r) = 8% per annum = 2% per quarter Duration (n) = 50…

Q: Find the present value of an annuity of P30,000 payable annually for 10 years, with the first…

A: Present value of an annuity referred as the amount of money required today to make a series of fund…

Q: The present value of an annuity of P5,000 payable at the end of each quarter for 9.5 years is…

A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…

Q: Compute the future value of the following annuity investments: s 1. P6,000 quarterly investment at…

A: The future value of the annuity can be calculated with the help of annuity function

Q: Determine the present and future value of an ordinary annuity for 80,000 pesos with 3% compounded…

Q: A perpetuity pays $ 100 each year , with the first payment scheduled two years from now . Assume…

A: The question can be solved as follows:

Q: The annual amount of a series of payments to be made at the end of the next twelve years is P500.…

A: Answered:

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: Find the present value of an annuity of P 30,000 payable annually for 10 years

A: Present Value of Annuity: It is the present worth of the future annual cash flow stream and is…

Q: Determine the present value of an ordinary annuity paid annually for 25 years if payments are 1.200$…

A: Ordinary Annuity is one of the two classification of annuities where first annuity transaction is…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Practice Pack

OFFON

The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

Includes step-by-step video

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Learn your way

Includes step-by-step video

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits?
The future value of an ordinary annuity of $1,000 each year for 10 years, deposited at 3 percent, is
Calculate the present value of a P20,000 annuity paying yearly for eight years, with the first payment due at the end of the eleventh year, assuming money is worth 5% compounded annually.
Find the present value of an annuity of P20,000 payable annually for 8 years, with the first payment at the end of the 11th year, if money is worth 5% compounded annually.
Determine the present value and total amount of an annuity with 6 payments ofP120,000 each made at the start of each year. Money has a 15 percent quarterlycompounding value.
In a sequence of 10 annual payments of P2,000 each, the first one is due at the end of 6 years. Find the present and future value of the deferred annuity if money is worth 6% compounded annually.
Suppose P1500 is deposited at the end of each year for the next 6 years in an account paying 8% interest compounded annually. Find the future value of this annuity.
The future value of an ordinary annuity of $2,000 each year for 10 years, deposited at 12%, is: $35,098 $39,310 $20,000 $11,300
Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest is earned at a rate of 7%, compounded annually
In a sequence of 10 annual payments of 2,000 pesos each, the first one is due at the end of 6 years. Find the present and future value of the deferred annuity if money is worth 6% compounded annually.