Q: What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriate interest rate is…
A: Working note:
Q: What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriateinterest rate is…
A: Computation:
Q: The PV of an n-year annuity-immediate with quarterly payments of $650 is $18,002.97. Given a nominal…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: What is the present value of the payments if they are in the form of an ordinary annuity? What is…
A: The present value can be calculated as follows : Calculations for above :
Q: dinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%.
A: Given information :
Q: What is the PV of an ordinary annuity with 10 payments of P2,700 if the appropriate interest rate is…
A: Please refer to the image below
Q: The rate of return offered by Reliance Insurance Co. on its 20-year annuities is 4.8% compounded…
A: Monthly payment (P) = $1000 Interest rate = 4.8% Monthly interest rate (r) = 4.8%/12 = 0.40% Period…
Q: four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how…
A: Present value =10000 interest rate =5% Period =4 years Present value FACTOR =1-(1.05)-4/0.05…
Q: What is the PV of an ordinary annuity
A: Years Cashflow PV=Cashflow/(1+i)n 1 2700/(1+0.055)^1 2559.24 2 2700/(1+0.055)^2…
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: Why would you prefer to receive an annuity due for $10,000 per year for 10 yearsthan an otherwise…
A: An ordinary annuity is an annuity which pays the cash flows at the end of the period. Under the…
Q: If the interest rate is 4%, the factor for the future value of an annuity due of 1 for n = 5,i-4% is…
A: We know that, Future value of an annuity due = P×1+in-1×(1+i)i Future value of an annuity ordinary =…
Q: A. What is the present value of a $500 perpetuity if the interest rate is 9%? Round your answer to…
A: Perpetuity = $500 A. Interest rate = 9% B. Interest rate =18%
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: You have an annuity that pays $15 per year for 61 years. What is the future value (FV) of this…
A: The future value is the amount that will be received at the end of a certain period. In simple…
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: 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: What is the present value of a $500 ordinary annuity at an interest rate of 6% for 5 years? Select…
A: The present value of annuity refers to the current value of a series of future payments. The present…
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 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: annuity
A: Annuity can be defined as series of payments which are made at regular intervals. Examples of…
Q: The present value of a perpetuity is equal to the payment on the annuity, PMT, divided bythe…
A: Perpetuity is the annuity which is paid for infinite time period. In other words, it refers to the…
Q: What's the difference between an ordinary annuity and an annuity due? Why would you prefer to…
A: Note: Interest arate is not provided,hence "i" is taken as 5% for calculation. Same formula can be…
Q: How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments…
A: Given information: Annuity : $2,000 Number of payments : 30 Rate of interest : 10%
Q: If the present value of an ordinary. 7-year annuity is $6,500 and interest rates are 75 percent,…
A: The present value of annuity due is simply calculated as the present value of ordinary annuity…
Q: What is the present worth of P500 annuity starting at the end of the third year and continuing to…
A: Annuities are basically the insurance contracts that guarantee to return a set amount of money on a…
Q: Calculate the Present Value of an ordinary Annuity (PVA) that includes 12 payments of $200 and an…
A: Present Value of an ordinary Annuity (PVA): The present value of money is worth more than it will be…
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: What is the future value of a 12%, 5-year ordinary annuity that pays $600 each year? Do not round…
A: Ordinary annuity is when the payments start at time 1, Annuity due is when the payments start at…
Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…
A: PMT = 58 Period = 13 years Nominal rate of interest = 7.23% Additional amount = 1000
Q: What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriate interest rate is…
A: Formulas:
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: . If the interest rate is 10%, the factor for the future value of an annuity due of 1 for n = 5, i =…
A: Solution: ordinary annuity means payments are at the end of period while annuity due means payments…
Q: If the future value of an ordinary, 6-year annuity is $5,900 and interest rates are 7.5 percent,…
A: Calculate the future value of annuity due as follows: Future value of annuity due = Future value…
Q: How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments…
A: An annuity is a series of monetary payments. A perpetuity is a sort of annuity that lasts…
Q: What is the present value of a $800 perpetuity if the interest rate is 8%? If interest rates doubled…
A: Perpetuity means that the steams of cash flow will be everlasting (forever continues). The formula…
Q: The present value of an ordinary annuity is P21,150.68. How long will equal payments of P2,000 at…
A: Using excel NPER function to calculate the time
Q: If the future amount is 50% more than the principal after 10mos, determine the simple interest rate.
A: Future Amount is 50% more than principal amount Assuming Principal = 100 Future Value = 150 Time…
Q: What is the present value of a s400 perpetuity if the interest rate is 8%? If interest rates doubled…
A: Perpetuity amount per annum (A) = $400 We need to find the present value of this perpetuity at…
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: Each payment of an annuity due is compounded for one compounded for one Select- -Select- v period,…
A: The annuity due shall be the annuity payable at the start of each year. The annuity due one typical…
Q: What is the present value of a $700 perpetuity if the interest rate is 8%? If interest rates doubled…
A: The below expression can be used to calculate present value of a perpetuity:
Q: What is the future value of an ordinary annuity that promises $60,000 per year for 10 years if the…
A: Given: PMT = Payment = $60,000 NPER = Number of years = 10 Interest rate = 4%
Q: How much will be the future value of a 5-year ordinary annuity which has annual payments of $200,…
A: The question gives the following information:
Q: Calculate the PV for a 10,000 per month annuity that has a 10 year term and a annual 9% rate. 2)…
A: Future value of annuity=P1+rn-1rP=Periodic paymentr= rate per periodn=number of period
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- What is the PV of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%? Group of answer choices $16,806 $17,690 $18,621 $19,601 $20,633If the present value of an ordinary, 6-year annuity is $8,800 and interest rates are 9.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) PV = $_______.__What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriate interest rate is 10%? How would the PVA values if we were dealing with annuities due?
- What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriateinterest rate is 10%? What would the PVA be if the interest rate was 4%?What if the interest rate was 0%? How much would the PVA values be if we weredealing with annuities due? ($614.46, $811.09, $1,000.00, $675.90, $843.53,$1,000.00)What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriate interest rate is 10%? What would the PVA be if the interest rate was 4%? What if the interest rate was 0%? How would the PVA values differ if we were dealing with annuities due?What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriate interest rate is 10%? What would the PVA be if the interest rate was 4%?What if the interest rate was 0%? How much would the PVA values be if we weredealing with annuities due? (
- What is the PV of an ordinary annuity with 10 payments of $6,600 if the appropriate interest rate is 5.5%? Select the correct answer. a. $49,766.03 b. $49,754.23 c. $49,771.93 d. $49,760.13 e. $49,748.33If the future value of an ordinary, 7-year annuity is $6,200 and interest rates are 6 percent, what's the future value of the same annuity due? $6,572.03 $6,634 $5,849.06 $6,200If the present value of an ordinary, 6-year annuity is $9,400 and interest rates are 9.5 percent, what’s the present value of the same annuity due?
- If the future value of an ordinary, 4-year annuity is $1,000 and interest rates are 6 percent, what is the future value of the same annuity due?Ordinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%. Inputs: PMT = $1,000 N = 5 I/YR = 15% PV = $3,352.16 FV= $6,742.38 How would the PV and FV of the above annuity change if it were an annuity due rather than an ordinary annuity? PV annuity due = ?Exactly the same adjustment is made to find the FV of the annuity due. FV annuity due = ?If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)