What is the present value of an annuity of $6,000 to be received at the beginning of each of the next eight periods assuming an interest rate of 10%?

Q: What is the present worth of a perpetual annuity of $2,000 each payable at the end of each year?…

A: Amount payable at the end of each year is $2,000 Interest rate is 10% compounded quaterly Quaterly…

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 future value of an annuity of $1300 paid at the end of each year for 10 years, if interest…

A: Annuities refer to a series of payments made at regular interval of time.

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

A:

Q: Annuities Find the present value of an annuity thatwill pay $1000 at the end of each year for 10…

A: The present value of an annuity refers to the present value of all the future payments of a series…

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Simple Annuity due refers to the payment system where amount paid or received in eac period is not…

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: What is the future value of an annuity of $2,000 invested at the end of each of the next six periods…

A:

Q: How much interest is included in the future value of an ordinary simple annuity of $1,650 paid every…

A: The question can be solved as follows:

Q: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…

A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…

Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…

A:

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: What must YOU invest today to receive an annuity of $4,500 for 10 years compounded at 8% quarterly…

A: PV of Annuity =P1-1(1+r)n r Where PV = Present Value r  = rate of interest n = Number of Period P =…

Q: Calculate the future value of an ordinary annuity where $360 is deposited and compounded quarterly…

A: The ordinary annuity of the payments would be considered as payment made at the end of the year, and…

Q: Calculate the cumulative value of an annuity series that starts immediately and makes payments of 10…

A: This is an example of an annuity due that starts immediately.  Given: Annuity payment "PMT" = 10000…

Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…

A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…

Q: Find the future value of an annuity of $1300 paid at the end of each year for 15 years, if interest…

A: Annuity is the payment of fixed amount at the end(ordinary) or beginning(due) of a financial period…

Q: What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: Find the future value of an annuity of P5,750 payable at the end of each quarter for 8 years if the…

A: Solution Annuity 5750 Period 8 years Number of annuity period =8*4 =32 Rate of…

Q: What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6…

A: Ordinary Annuity =$2000 Years(n) = 4 Interest rate(r) = 6% Future Value = Ordinary annuity * […

Q: What is the present value of an annuity that consists of 24 semiannual payments of $8000 at the…

A: Present value is the current value of future cash flow with respect to time value of money.

Q: What is the present value of a $775 annuity payment over six years if interest rates are 11 percent?

A: In this question we need to compute the present value of annuity payment from below details: Annuity…

Q: The present value of a five-year annuity-immediate, with payments of $100 each six times per year,…

A: Present Value (PV)= $2093 Time (t)= 5 years Annuity Amount (A)= $100 (6 times a year)= $600 Rate of…

Q: What is the present value of a $90 annual annuity for 10 years with an additional $1000 received at…

A: Solution:- When an equal amount is paid each period, it is called annuity. The terminal value…

Q: What is the present value of an annuity of $6,000 to be received at the end of each of the next…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Find the future value of an annuity of $1400 paid at the end of each year for 15 years, if interest…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: What is the accumulated amount of a 10-year annuity paying ₱ 10,000 at the end of each year, with…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Assume that you make quarterly payments of $ 750 into an annuity paying 9% interest compounded…

A: Quarterly payment = $750 Interest rate = 9% Quarterly rate = 0.09/4 = 2.25% Time =10 years Quarterly…

Q: The future value of an ordinary annuity of $1,000 each year for 10 years, deposited at 3 percent, is

A: Payment (PMT) = $ 1,000 Tenure (N) = 10 years Rate (R) = 3%

Q: What is the future value of an annuity of $2,000 invested at the beginning of each of the next six…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: A 15-year annuity pays ¢5,500 per month, and payments are made at the end of each month. If interest…

A: The present value of annuity is the series of cash flows that occur with equal period of time. The…

Q: Find the present value of the following annuities: 100 payable every month for 5 years if the…

A: Present value (PV) also termed as current value refers to the sum of all future cash flow (CF) or…

Q: What is the present value of an ordinary annuity of 2,200 per year for 15 years discounted back to…

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

Q: Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12%…

A: Total Semi annual payments is 20 Interest rate is 12% compounded semi annually Amount of annunity is…

Q: What is the future value of an annuity of 15 deposits of $6407 at the end of each year with a…

A: Step1: Calculating the future value of annuity. We have,Future value of annuity = P [(1+r)n – 1] /…

Q: What is the present worth of a perpetual annuity of $2,000 each payable at the end of each year?…

A: Perpetual Annuity is $2,000 Interest Rate (r) is 10% Compounding Period (m) is Quarterly i.e. 4…

Q: What is the present value of a $700 annuity payment over six years if interest rates are 10 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: Calculate the future value of an ordinary annuity consisting of monthly payments of $450 for five…

A: An ordinary annuity is an annuity where the periodic payment occurs at the end of the period.

Q: What are the future value and present value of an annuity of 1300 payable monthly for 30 payments,…

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

Q: Prepare a time diagram for the present value of a four-year ordinary annuity of $200. Assume an…

A:

Q: For an ordinary annuity with a five annual payments of $100 and a 10% interest rate, how many years…

A: Ordinary Annuity involves fixed and equal annual payments at the end of consecutive periods over a…

Q: What is the present value of an ordinary annuity of $400 each month for eight years, assuming an…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: find the present value of annuity due of 7,000 payable at the beginning of each quarter for six…

A: given, A= 7000 N = 6 M=4 R=14%

Q: What is the accumulated amount of a 9-year annuity paying ₱ 1,075at the end of each year, with…

A: Future value is defined as the current asset value at the date of future on the basis of an assumed…

Q: Find the monthly payment that will yield a future value of $183,000 at 8 1⁄4 % interest for…

A: Future value refers to the value of inflows that is going to be receive in future on particular…

Q: A 13-year annuity pays $1,200 per month, and payments are made at the end of each month. The…

A: Present value of annuity is the present value of all the periodic stream of cash flow that occur in…

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.