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)

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 present value of an investment that pays $103 at the end of each of years 1, 2, and 3?…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: What is the present value of a $400 perpetuity if the interest rate is 8%? If interest rates doubled…

A: Given data; deposit amount = $400 interest rate ( r1) = 8% interest rate (r2) = 16%

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 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: What is the Present Value of a 3-year ordinary annuity of $100 at 5%?  For clarity, the annuity pays…

A: present value of ordinary annuity formula: PVA=A×1-11+rnrwhere,A=annual paymentr=interest…

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

A: We need to use the concept of time value of money to solve the question. According to the concept of…

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: 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: How much would $5,000 due in 10 years be worth today if the discount rate were 5.5%?

A: Information Provided: Years = 10 Future value = $5000 Discount rate = 5.5%   NOTE: As per our…

Q: Give an annual opportunity cost of 10%,what is the future value of a $3,000 ordinary annuity for 10…

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 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: 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: A regular monthly perpetuity starts with a $925 payment next month, and grows at a rate of 3.72% APR…

A: Given: Monthly payment = $925 Growth rate = 3.72% Discount rate = 7.8%

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’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's the future value of a 12%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: Here, To Find: Future value of an ordinary annuity =? Future value of an annuity due =?

Q: annuity

A: Annuity can be defined as series of payments which are made at regular intervals. Examples of…

Q: American Capital offers a 7 year ordinary annuity with a guaranteed rate of 6.35% compounded…

A: We need to find the present value of this annuity. Annual payment (A) = P 10000 n = 7 years r =…

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: A ten-year annuity has an interest rate of 12% with individual cash flows of $150 at every end of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You have an annuity  that pays $15 per year for 61 years. What is the future value (FV) of this…

A: Future Value of Annuity: The value of a collection of regular payments at a future date, assuming a…

Q: What is the future value of an 11%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: Formula: Future value of Annuity = P x [ ( 1 + R )N - 1 ] / R N = Number of years R = Rate of…

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

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’s the present value of a 5-year ordinary annuity of $100 plus an additional$500 at the end of…

A: Given information: Cash flows from 1 to 5 years is $100 Lump sum amount at the end of 5th year is…

Q: What is the future value of an annuity due if your required return is 10%, and payments are Php1,000…

A: Given:

Q: What is the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10…

A: There are two types of annuities: Annuity due - Equal payments made at the beginning of an equal…

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 $890 annuity payment over six years if interest rates are 10 percent?…

A: Annual payment (P) = $ 890 Annual interest rate (R) = 10% Period (N) = 6 years

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: 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: 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: 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: What is the future value of an ordinary annuity with annual payments of $1200 for 20 years at 10%…

A: An annuity is a constant stream of cash flows. An ordinary annuity is one in which cash flows takes…

Q: What is the present value of a 30 year annuity with payments of $1,600 per year if interest rates…

A: Computation:

Q: What is the PV of an ordinary annuity with 5 payments of P4,700 if the appropriate interest rate is…

A: According to the time value rule, a sum of specific money available at present is worth more than…

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: Which is a better way to invest $7,000 if the concern is simply the future value: a 2-year…

A: Option 1 - Investing $ 7000  for 2 years at 2.2% quarterly Option  2- Investing divided $ 7000 in…

Q: What is the difference between the future and present value of an annuity with 5 payment of 1000,…

A: The time value of money rule states that the future value of a sum represents an amount to be…

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%