uppose your firm has an obligation to pay an annuity with 18 annual payments of $80,000. The first payment is due two years from today. Assume all interest rates are 11.5%. Write down the information requested on your answer sheet.   What is the duration of the obligation? Please carry out intermediate steps further but in your final answer be accurate to and express your FINAL answer as accurate to the nearest 4 decimal places. Please do NOT answer MORE than 4 decimal places...round your answer to the nearest 4

Q: It is now January 1, 2018, and you will need $1,000 on January 1, 2022, in 4 years. Your bank…

A: According to the present and future value annuity, the regular periodic payments would be asking…

Q: One year from today you must make a payment of $13,000. To prepare for this payment, you plan to…

A: A periodic payment is the set of payments that a borrower makes to the lender or the deposits that…

Q: Suppose your opportunity cost (interest rate/year) is 11% compounded annually.  How much must you…

A: Hi there! Thank you for the question. Post has multiple questions. As per company guidelines expert…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The size of the payment can be computed by using the PMT formula of excel. The values require for…

Q: Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much…

A: Yearly Deposit are of $5,700 Interest rate is 11% Time period is 19 years for Part(A) and 38 Years…

Q: You are to make monthly deposits of $625 into a retirement account that pays an APR of 11.4 percent…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: If you make quarterly deposits of $415.00 into an ordinary annuity earning an annual interest rate…

A: Future value of an annuity depends on the regular payments and interest rate applicable on the…

Q: Suppose a certain manufacturer deposits $3,000 at the beginning of each 3 month period for 8 years…

A: Gien Information, Deposit = $3,000 Interest Rate = 8% Compounding Frequency = quarterly    Formula…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with…

A: loan amount (p)=$10,000 n=11 payment m=4 pmt=$360.02 r=5.9%

Q: Malik took out a loan for $27,800 from CIBC at 5.51% compounded quarterly, and will be making…

A: We need to use financial calculator to solve this problem  where P/Y =Payments par year C/Y…

Q: a. You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being…

A: Using excel FV function

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: If 5 deposits of $600 each are made into an account at the end of years 9, 10, 11, 12, and 13, what…

A: Deposit in year 9,10,11,12 and 13 = $ 600 Future value period = Year 25 Annual interest rate = 12%

Q: It is now January 1, 2018. You plan to make 5 deposits of $200 each, one every 6 months, with the…

A: Future value is the expected value of an investment at a future date at given rate of return. given:…

Q: You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made…

A: Hi there, Thanks for posting the question. But, per Q&A honor code, The solution for the first…

Q: Assume that you have a balance of $4500 on your Discover credit card and that you make no more…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: What is the effective annual rate (EAR or EFF%)?  What is the EFF% for a nominal rate of 5%,…

A: Because you have posted multiple questions, we will answer only the first question and if you want…

Q: For the following loạn, make a table showing the amount of each monthly payment that goes toward…

A: Amortization table is one in which the break-up of each payment towards the loan is done into…

Q: You are to make monthly deposits of $425 into a retirement account that pays an APR of 10.6 percent…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: If you borrow $2,900 and agree to repay the loan in six equal annual payments at an interest rate of…

A: a. Present value of payment = Payment *[1-(1+interest rate)^-time period]/rate $2,900=Payment *…

Q: If you buy a computer directly from the manufacturer for $2.634 and agree to repay it in 36 equal…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: If $6,840.00 is loaned for 4 months at an annual simple interest rate of 3.5%, how much interest is…

A: Principal =$6840 Time = 4 months Simple Interest = 3.50%

Q: You are planning to make annual deposits of $5,970 into a retirement account that pays 10 percent…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account…

A: Annual deposit (P) = $ 2500 Annual interest rate (R) = 0% Number of annual deposit (N) = 12

Q: A company wants to have $20,000 at the beginning of each 6-month period for the next 4years. If an…

A: Present value of annuity concept is required to use in this case. Present value of annuity is the…

Q: What is the approximate amount of each payments that Yumati will need to​ make?

A: Here is the calculation for the above question.

Q: A loan is to be repaid quarterly for 14 years that will start at the end of 4 years. If the interest…

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

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The amount which is deposited at the beginning of every period for a specified duration is known as…

Q: In order to solve this question, would I use the compounded monthly formula and then subtract the…

A: We will do it in following steps:First we will find out what should be the monthly mortgage payment…

Q: If you buy a computer directly from the manufacturer for $2,202 and agree to repay it in 48 equal…

A: 1.Calculation of monthly installments 2.Total Interest paid Given  Monthly Interest rate= 1.59%…

Q: you have just borrowed $51,107 at an annual interest of 7.6% and must repay the loan in equal…

A: Given:

Q: What lump sum of money (P) must be deposited into a bank account at the present time so that…

A: Monthly withdraw (C) = $ 500 First monthly draw (Y) = begin at the end of month 72 Period of…

Q: If you borrow $2,400 and agree to repay the loan in four equal annual payments at an interest rate…

A: Given information: Borrowed amount $2,400 Interest rate is 10% Number of periods 4 equal annual…

Q: It is now January 1, 2018, and you will need $1,000 on January 1,2022, in 4 years. Your bank…

A: a) Face Value=1000Number Of Years=4rate=8%Present Value Of Amount to be Deposit Today…

Q: Suppose you deposit D dollars at the beginning of each month into an account that pays a monthly…

A: Given: B = $2,600 D = $160 r = 0.005 B = D(1+r)[ (1+r)t -1]/r.

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: I/Y = rate = 6.2%/2 = 3.1% NPER = Number of years = 13*2 = 26 PV = Present value = 0 FV = future…

Q: What is the monthly effective interest rate? [ Select ] If the objective of these deposits is to…

A: Time period = 60 months  Nominal interest rate = 6%  Compounded monthly basis

Q: From a bank, an engineer borrows $18000 that is to be repaid in 2 years with end-of-month payments…

A: Using the rate function in excel

Q: Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $81,000…

A: To determine the monthly interest on the annuity: Lump sum payment = $81,000 Annuity = $625 Period =…

Q: Presently the Smiths invest $100,000 for A months in a certificate paying interest at the nominal…

A: Interest is the amount charged or received on total invested amount or amount borrowed. It can be…

Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…

A: We need to use future value of annuity formula to calculate annuity amount after 5 years. Future…

Q: Alpha Ltd. has just borrowed to finance one of its projects. The loan contract specifies that the…

A: Quarterly payment (Q) = $5235 n = 5 years = 20 payments Interest rate = 5.6% compounded monthly Let…

Q: a. You plan to invest $5,000 in an individual retirement arrangement today at a nominal annual…

A: Future value is the value of current asset or investment at a future date. Future value is…