What is the future worth of each of the given series of payments?(a) $12,000 at the end of each six-month period for 12 years at 8% compounded semiannually.(b) $8,000 at the end of each quarter for 6 years at 12% compounded quarterly.(c) $6,000 at the end of each month for 5 years at 6% compounded monthly.

Q: What is the present worth of the followingseries of payments?(a) $1,500 at the end of each year for…

A: A series of recurring fixed payments over a particular period of time is called as annuity. To…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…

A: Quarterly Payment = 4500 Time Period = Number of quarterly payments = 16 quarters Quarterly Payment…

Q: What is the value today of receiving $8,000 at the end of each six-month period for the next four…

A: Periodic Payment (End of every 6 months) = $8,000 Interest Rate p.a. = 8% p.a. Six Month Interest…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…

A: Annual interest rate = 8% Number of compounding per year = 6 Effective annual rate = (1+0.08/6)6-1…

Q: The future value of an anjuity at the end of ten years is 80000, the payments are made at the end of…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: What is the future werth of a series of equal monthly payments of $2,000 if the series extends over…

A: Future value is the value of an asset after a specific time period.

Q: For 10 years with total payments of $ 10000 per year, calculate the total amount accumulated at the…

A: we will only answer the first three subparts . for the remaining subparts kindly resubmit the…

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: Calculate the present value of 120 payments of $50.00 made at the end of each of 120 consecutive…

A: This is an annuity in which the annuity amount is $50, n = 120 and r = 12%/12 (as compounded…

Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: What is the principal invested at 4.75% compounded semiannually from which monthly withdrawals of…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: What lump sum deposited today at 8% compounded quarterly for 10 years will yield the same final…

A: First we need to calculate future value of semi annual deposits and use this future value to…

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: What is the final amount of $2696 payable every three months for 5 years and 9 months, if money is…

A: Here, Quarterly Payment is P2696 Time Period is 5 years and 9 months Time Period in Quarters  (n)…

Q: Determine Mark's present worth of an annual payment of P2, 500 at the end of each year for 12 years…

A:

Q: What is the future value of $800 deposited each year for six years, compounded annually at 10…

A: RATE  10% NPER (n)  6 PMT 800

Q: What is the present value of annual payments of $2,000 for 12 years at 1 percent?

A: Present Value of Annuity is that amount which was invested by the investor today for receiving the…

Q: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…

A: The present value is the addition of the discounted values of the future payments.

Q: Determine the present value on July 7 of Php 6 800 paid at the end of each subsequent calendar…

A: Compound interest accrues at a rate determined by the regularity of compounding, with the greater…

Q: How much must be deposited at the beginning of each year in an account that pays 7%, compounded…

A: Here, The future value is FV i.e $28,000 The rate of interest is r i.e. 7% The maturity is n i.e 10…

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: Time Period = 20 Years Interest rate = 5% Present Value = $180,000

Q: What is the future value of $1,250 deposited at the end of each quarter year for 10 years earning 9%…

A: Given details are : Each quarter deposit = $1250 Time period = 10 years = 40 quarters Interest rate…

Q: Calculate the compound amount (in $) on an investment of $5,500 at 10% interest, compounded…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: d) Semi-annual payments of 60,000 for 3 years that will start 5 years from now. e) Payments of 3,000…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: What is the accumulated amount of a 8-year annuity paying ₱ 4,300at the end of each year, with…

A: Using excel FV function

Q: Two payments of $18,000 and $2,200 are due in 1 year and 2 years, respectively. Calculate the two…

A: Compounding refers to the power of increasing the interest on the total investment . It actually…

Q: What is the present worth of an annual payment of P5, 000 at the end of each year for 10 years at 10…

A: The present value of annuity will be calculated at the end of year 4 since annuity begins from Year…

Q: If you contribute $1000.00 into an RRSP every six months for fifteen years and interest on the…

A: GIVEN, pmt =$1000 NPER = 15 X 2 =30 RATE = 8%2=4% PV=0

Q: What is the present worth of each given series of payments?(a) $12,000 at the end of each year for…

A: a) Hence, the present worth is $15315.38. b) Hence, the present worth is $45327.06.

Q: If money is worth 12% compounded quarterly, determine the single payment at the end of the fourth…

A: The question is based on the annuity valuation. The outstanding value of every loan equals the…

Q: What is the equal-payment series for 10 years that is equivalent to a payment series starting with…

A: Given information: Initial amount is $10,000 Decreases by $1,000 over 10 years Interest rate is 7%

Q: What is the present worth of the followingseries of payments?(a) $5,000 at the end of each six-month…

A: Periodic Payment = 5000 Semi Annual Compounding, Hence: Time Period = 12 years * 2 = 24 semi annual…

Q: If money is worth 8% compounded quarterly, find the present value of 12 quarterly payments of P1,…

A: The rate of interest is 8% compounded quarterly. The payment made for 12 quarters. the each payment…

Q: If P8,000 shall accumulate for 10 years at 12% compounded quarterly. Find the compound interest at…

A: Investment amount (P) = P 8000 Interest rate  = 12% Quarterly interest rate (r) = 12%/4 = 3% Period…

Q: Calculate the future value of end-of-quarter payments of $5,000 made at 6.10% compounded monthly for…

A: Given rate is 6.1% compounded monthly effective annual rate is = (1+0.061/12)^12 -1 = 6.2734% Rate…

Q: Find the present value of $500 due in five years under each of the following conditions: a. 12…

A: The question is asking about the present value of $ 500 due after 5 year at discount rate 12% but in…

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

A: 1 2 FUTURE VALUE 1552.9 1552.9 DISCOUNT RATE 12% 6% YEARS 10 10 PMT 0 0   ANNUALLY…

Q: What is the value today of $500 received at the beginning of each period of six months for 12 years…

A: The following formula will be used to calculate today value as follow:

Q: What deposit made at the beginning of each month will accumulate to $120,000 at 8% compounded…

A: An annuity is the fixed payment that an investor receives from an investment or fixed deposits made…

Q: What is the future value of $950 paid on the last day of each 6 months for 12 years assuming an…

A: The future value represents the amount which going to be received in the future. The formula used to…

Q: What is the equal payment series for 12 yearsthat is equivalent to a payment series of $25,000 atthe…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: If 5,000 shall accumulate for 10 years at 8% compounded quarterly, then what is the compound…

A: Given: Present value = 5000 Number of years = 10 The interest rate is: i'=in4=i44=0.084=0.02

Q: What quarterly compounded nominal interest rate is earned on payments of $215 paid at the beginning…

A: An annuity is a payment plan where a fixed recurring amount is paid in return for a lump sum amount.…

Q: A 13-year annuity pays $1,400 per month, and payments are made at the end of each month. The…

A: The Present value of annuity can be calculated using PVfunction in excel.It can be divided into 2…

Q: If $80,000 is invested in an annuity that earns 5.3%, compounded quarterly, what payments will it…

A: The total number of years is 8.5. The total number of quarters will be (8.5 × 4) = 34. Interest rate…

Q: What is the future worth of the following seriesof payments?(a) $75,000 at the end of each six-month…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: A series of equal quarterly payments of $2,500 extends over a period of four years. What is the…

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

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.