What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?  Suppose y

Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…

A: Present value of annuity payment - it means present value of future annual equal payment made to a…

Q: Suppose you are going to receive $13,500 per year for five years. The interest rate is 8.4% a. What…

A: PV of Ordinary Annuity = 13500*a<5> = 13500*(1-(1+i)^-5)/i = 13500*(1-1.084^-5)/0.084 =…

Q: What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?

A: Details given are : Annual cashflow = $300 time period = 5 years Interest rate = 8% We require to…

Q: What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an…

A: When the Cash Flows occurs at the end of each period, the annuity is called a Regular Annuity. In…

Q: What’s the present value of a perpetuity that pays $1,000 per year beginning1 year from now, if the…

A: Computation:

Q: What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate…

A: Given details are : Annual payment = $3800 Interest rate = 5% = 0.05 From these details we need to…

Q: Find the present value of an annuity of $ 365.00 per month for 26 years at a rate of 3 1/4% interest…

A: Monthly payment (P) = $ 365 Period = 26 Years Number of monthly payments (n) = 26*12 = 312 Annual…

Q: What's the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: For ordinary annuity, payment takes place at the end of every period and for annuity due, payment…

Q: Assume that you deposited $100000 in a bank that offered 10% annual interest rate. How much would be…

A: Given: Present value =$100000 Interest rate = 10% = 0.10

Q: What is the present value of an annuity that pays $200 per month for 10 years if money is worth 5%…

A: Present Value:It is the discounted value of cash flows of different period or sum of future money…

Q: What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10…

A: Given: Annual cash flow (A)=$1000 Number of years (n) =9 years Interest rate(r) = 10% = 0.10

Q: What's the future value of an 8%, 5-year ordinary annuity that pays $100 each year? If this was an…

A: Annual payment=100Interest rate=8%Number of years =5

Q: A. What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your…

A: A. Future value is $610.51.

Q: Suppose you're going to receive $7800 per year for five years. the appropriate discount rate is…

A: An annuity is defined as a stream of payments over a fixed period of time. Most people normally…

Q: b) Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the…

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

Q: What is the present value of perpetuity of $100 per year if the appropriate discount rate is 7…

A: Time value of money-It is based on the concept that money earned today is worth more than similar…

Q: Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per…

A: Since you have not mentioned the specific question we will just answer the first question in case…

Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…

A: present value of a perpetuity = Annual payment/Discount rate

Q: What is the present value of a four-period annuity of $200 per year that begins two years from today…

A: Annual annuity amount = $200 Time Period = 4 years Discount Rate = 9%

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: hat is the present value of a perpetuity paying $1500 each year, if the effective annual interest…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: Suppose you are going to receive $17,500 per year for five years. The appropriate interest rate is…

A:

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

A: 1. How many years will the first payment earn interest? Since, it is an ordinary annuity , the first…

Q: What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%?

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

Q: Suppose you put $ 450 a month for retirement into an annuity earning 4.25% compounded monthly. If…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an…

A: Calculation of future value of annuity:

Q: What's the future value of a 5%, 5 year ordinary annuity that pays $800 each year? If this was an…

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

Q: An annuity pays $1000 per year for 12 years. Inflation is 6 percent per year. The annuity costs…

A: Internal rate of return is one of the modern techniques of capital budgeting which considers the…

Q: What is the future value of a three-year, ordinary $ 1,000 annuity when money is worth

A:

Q: What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an…

A:

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…

A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5

Q: If the future value of an ordinary, 7-year annuity is $7,900 and interest rates are 9.0 percent,…

A: Future value of an ordinary annuity = $7,900 Interest rate = 9%

Q: If you are expecting a settlement of $10000 at the end of each year for five years, how much this…

A: The question is based on the concept of calculation of present value of future annuity payment.…

Q: d. Calculate the future sum of $1,000, given that it will be held in the bank for 5 years earning an…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Suppose withdrawals of 10,000 every year starting at time 8 will be made and will go on forever. How…

A: Annual Withdrawals is 10,000 Time Period is forever Annual Withdrawals starts at Time 8 Effective…

Q: What is the present value of this annuity?

A: Introduction: The term annuity can be defined as set of payments that is received by the investor at…

Q: What is the future value of an $800 annuity payment over 10 years if the interest rates are 6…

A: Future value is the value of an asset in the future. It is based on an assumed rate of growth. It is…

Q: If the future value of an ordinary, 7-year annuity is $9,900 and interest rates are 9.0 percent,…

A: Given, Future Value = $9,900 Interest Rate = 9.0% Term = 7 years Formula: Future value of annuity…

Q: What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an…

A: Annuity Amount= $300 each year Rate of Interest (r)= 7% Time period= 5 years

Q: Suppose you are going to receive $13,000 per year for 7 years. The appropriate interest rate is 8…

A: Present value of annuity is the present value of all the stream of cash flows that occur in future.…

Q: Suppose you are going to receive $10,000 per year for 5 years. The appropriate interest rate is 11%.…

A: Here, Annuity Amount is $10,000 Time Duration is 5 years Interest Rate is 11%

Q: What's the future value of a 7 percent,  5-year ordinary annuity that pays $300 each year?

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

Q: How much money do you need to invest now for you to receive 15000 semi-annually for 7 years if it…

A: Semi-annual payment = 15000 Time period = 7 Semi-annual interest rate = 7.5%

Q: What is the present value of an annuity due of $10,000 per year, with the first cash flow received 5…

A: Present value of an annuity the present value of future cashflows

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.