Answered: The periodic payment needed is $

Business

Finance

The periodic payment needed is $

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.17E

See similar textbooks

Related questions

Q: Acme Annuities recently offered an annuity that pays 4.5% compounded monthly. What equal monthly…

A: Annuities are financial products that are sold by the financial institutions (like insurance…

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 4%…

A: Future value of an annuity: The worth of a sum of money that will be paid on a specified date in…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

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

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

A: Given information : Annuity $ 15,000.00 Total payments 30 First payment due 7 Interest…

Q: Find the monthly payment that will yield the future value of $105,000 using an ordinary annuity at…

A: Future value annuity formula can be used to determine the monthly payment of this ordinary annuity.…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Find the payment made by the ordinary annuity with the given present value. $82,087, monthly…

Q: Find the future value of a 6-year annuity due with payments of $4,300 and an annually compounded…

A: An annuity is a contract that pays a periodic sum for a predetermined period for a lump-sum amount…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

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

A: Amount of deposit(m): $800 Frequency(n): annually Rate(r): 1% Time(t): 30 years

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The PMT is the equal pay that has to paid or received monthly or yearly.

Q: calculate the annuity's Present value and Future value

A: Present Value of Annuity: It represents the present value of the future stream of cash flows and is…

Q: Find the future value of an annuity of $1800 paid at the end of each year for 15 years, if interest…

A: Future value of an annuity:- It is the recurring payment that occurs at a specific date in the…

Q: Find the future value of a 15-year annuity due with payments of $2,700 and an annual compound…

A: To Find: Future Value

Q: Find the future and present value of a 5 year GHC 1,000.00 annuity if the rate of interest is 12%…

A: FV of Ordinary Annuity= PMT[(1+i)n-1/i] = 1000[(1+0.12)5-1/ 0.12] = 1000[1.7623-1/0.12] =…

Q: Find the future value for the ordinary annuity with the given payment and interest rate. PMT =…

A: PMT = $2000 r = 1.1% per annum = 0.09167% per month n = 6 years = 72 months

Q: To calculate the future value of the annuity to the nearest cent, substitute the known values of i =…

A: Future value of annuity is the future value of periodic streams of cash flow over a definite period…

Q: value of the given annu

A: The future value of the annuity can be calculated as follows :

Q: Which will provide the largest yield on an annuity after 30 years with 6% annual interest,…

A: Given, N = 30 Years r = 6%

Q: Calculate the future value of the following ordinary simple annuities. Round the answers to the…

A: Solution:- When an equal payment is made each period at end of period, it is called ordinary simple…

Q: Find the future value of the following ordinary simple annuity. Periodic Payment $377.00 Payment…

A: Quarterly payment (Q) = $377 Duration (n) = 7.25 years = 29 quarterly payments r = 11% per annum =…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Calculate the future value of an ordinary annuity that pays $2,350 at 6% for 6 years. Also determine…

A: Annuity is the series of periodic payments. If the annuity payment is made at the end of the periods…

Q: Find the future value of the given annuity. (Round your answer to the nearest cent.) ordinary…

A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, P= annuity amount r =rate of interest per…

Q: Find the present value of an annuity

A: Present value of annuity represents the current value of the future payments for an annuity. There…

Q: Find the monthly payment that will yield the given future value: $250,000 @ 10.5% interest for…

A: Introduction: Annuity can be defined as the set of payments made at equal intervals. Annuity due…

Q: Evaluate ordinary annuity Assume monthly payouts - round your answer to nearest cent. M = $50 R =…

A: Present Value: The present value (PV) is the present sum of a series of fixed payments. The series…

Q: Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the…

A: Using excel PV function

Q: Find the future value of the ordinary annuity. (Round your answer to the nearest cent.)$130 monthly…

A: RATE (5.25%/12) 0.4375% YEARS /PERIOD (2*12) 24 PMT (MONTHLY PAYMENT) 130 PRESENT VALUE $0

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given

A: Present Value of Annuity: It represents the present worth of the future annuity periodic payments…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT…

A: According to the information give. Future value of the annuity account = $20,000 Number of payments…

Q: Find the future value of an annuity due of $600 each quarter for 4 1/2 years at 8%, compounded…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: Future value: It tells the expected money in future period. By considering interest rates.

Q: Acme Annuities recently offered an annuity that pays 3.6% compounded monthly. What equal monthly…

A: Each period payment is considered as PMT.

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: Acme Annuities recently offered an annuity that pays 5.4% compounded monthly. What equal monthly…

A: We need to use future value of ordinary annuity formula to calculate monthly deposit or payment. PMT…

Q: Find the payment made by the ordinary annuity with the given present value. $216,967; quarterly…

Q: Find the periodic payments PMT necessary to accomulate the given account in an annuity account.…

A: The annuity in which fixed amounts are paid at the end of each period is known as an ordinary…

Q: Acme Annuities recently offered an annuity that pays 5.4% compounded monthly. What equal monthly…

A: The monthly payment required to reach the target can be calculated with the help of future value of…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: How much interest is included in the future value of an ordinary simple annuity of $1,700 paid every…

A: Semiannual payment (S) = $1700 n = 5.5 years = 11 payments r = 12% per annum = 6% semiannually

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT…

A: Deposits means the amount which is deposited by the depositor in the account. These deposits can be…

Q: Find the future value (FV) of the annuity due. (Round your answer to the nearest cent.)$185 monthly…

A: RATE (7%/12) 0.5833333% YEARS (12*12) 144 PMT (MONTHLY PAYMENT) 185 PRESENT VALUE $0

Q: Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest…

A: annuity due is the series of payments made at the beginning of each period in the series, periods…

Q: Find the present value of an annuity due that pays $3000 at the beginning of each quarter for the…

A: Here compounding is given quarterly. So, there will be four quarters in a year. Divide rate by 4 to…

Q: Find the future value of an annuity due of $1000 paid at the beginning of each 6-month period for 7…

A: Future value of annuity due for payments (P) $1000 made at the beginning of each 6 months for a…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: Information Provided: Future value = $80,000 Interest = 3% Term = 20 years Payments = Quarterly

Q: What is the present value of a 9-year annuity of $4,000 per period in which payments come at the…

A: Present value is a concept which states that amount of money today is worth more than the amount to…

Q: Find the present value of an annuity with payments of $2,000 at the end of every six months for 8…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Question

Find the periodic payment needed to attain the future value of the annuity. Round to the nearest cent.

Future value= $2.2 million Rate= 9.55% Compunded weekely Time= 32 years

The periodic payment needed 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.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

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
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?
Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
Present Value of an Annuity Ralph Benke wants to make 8 equal semiannual withdrawals of 8,000 from a fund that will earn interest at 11 % compounded semiannually. Required: How much would Ralph have to invest on: 1. January 1, 2019, if the first withdrawal is made on July 1, 2019 2. July 1, 2019, if the first withdrawal is made on July 1, 2019 3. January 1, 2019, if the first withdrawal is made on January 1, 2022
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%