To discharge a debt, with the interest of 7% compounded monthly, Mark agrees to pay P500 at the beginning of each month for 6 years. 1. Find the original size of the debt. 2. Find the remaining liability of Mark justsfter he makes his 5th payment 3. Find the remaining liability of mark just before he makes his 10th payment.
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![Ordinary Annuity
Deferred Annuity
1-(1+0"
(1+0"-1]
1-(1+1)
P= A
F= A
P= A
(1+0
Annuity Due
Perpetuity
[(1+0**1-1
F= A
P=(1+0-*
if there are deferred periods
P= A
+1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F004465c7-3ce3-44b8-8e13-bedc14e45dc0%2Fcc2909ce-398c-4f3e-9903-93b9e1fbda9f%2F8eant5_processed.jpeg&w=3840&q=75)
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- 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 $324,000 at the end of 3 years, what is its present value? Group of answer choices $279,396 $291,703 $273,380 $250,193Use 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 $250,193
- Write the 4 Formulas for Uniform Annuity Series 1 Find F/A2 Find P/A3 Find A/P4 Fina A/F5 P (Present Value) for Perpetuity(b) Find the present value of an annuity-immediate such that payments start at 1, increase by annual amounts of 1 to a payment of , and the decrease by annual amounts of 1 to a final payment of 1.General Annuity. Find P if C=₱20,000, r=2.5%, t=2, m=4,k=12.
- Answer nunbers 2,3,4 COMPUTE FOR ITS ORDINARY ANNUITY Show the solutionThe force of interest is given by: ?(?) = {0.08 − 0.001? 0 ≤ ? < 30.025? − 0.04 3 ≤ ? < 50.03 ? ≥ 5Calculate the present value at time 2 of a payment of £1,000 at time 10.Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 .890 .826 .797 3 .840 .751 .712 4 .792 .683 .636 5 .747 .621 .567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .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 $15,000 (rounded to the nearest dollar) to be received three years from today, assuming an earnings rate of 6%? a.$12,600 b.$40,095 c.$14,145 d.$13,350
- Prove: FVA of an Ordinary Annuity times (1+i) = FVA of an Annuity Due, where i= interest rate. SHow all workelow 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 $30,000 to be received three years from today, assuming an earnings rate of 6%?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…