What's the future value of a 5%, 5-year ordinary annuity that pays $100 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the nearest cent. Future Value of an Ordinary Annuity: $   Future Value of an Annuity Due: $

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: Find the future value of an ordinary annuity of $500 paid quarterly for 8 years, if the interest…

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

Q: What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a…

A: Future value refers to the amount of current investment after a certain time at a certain rate of…

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’s the interest rate of a 7-year, annual $3,900 annuity with a present value of $20,000? (Use a…

A: Calculate the interest rate as follows:MS-Excel --> Formulas --> Financials --> Rate

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: 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: a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of…

A: In this we have to calculate present value FACTOR of annuity and from that we can  calculate the…

Q: What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is…

A: Perpetuity is a type of annuity which has no maturity. Given data; payment = $ 250 interest rate =…

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: What is the value today of an annuity of $5,900 per year, with the first cash flow received three…

A: According to the information provided, the first cash flow is three years from today and the last…

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: Use a calculator to evaluate an ordinary annuity formula. For m, r, and t (respectively). Assume…

A: The future value of an ordinary annuity finds the future worth of periodic annuity payments. It…

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: 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: Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this…

A: Annuity refers to the amount of installment that is paid regularly in a specific time gap and for a…

Q: Solve for the FVA or PVA value of the following annuity DUE s; Payment amt $ 12,000.00 $ 60,000.00…

A: a) Ordinary annuity and annuity due can be calculated using formula and excel. Since, the question…

Q: Use a calculator to evaluate an ordinary annuity formula.  For m, r, and t (respectively). Assume…

A: Given data, m=100 r=4% or 0.04 t= 12 years n=12 ( for monthly payments)

Q: What is the future value of a $500 annuity payment over four years if interest rates are 8 percent?…

A: Calculate the future value as follows:

Q: Use a calculator to evaluate an ordinary annuity formula. For m, r, and t (respectively). Assume…

A: The present value of an annuity is the value of all the future payments at this moment. In an…

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 have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

A: Present Value of Annuity=Annuity×1-11+ratetimerate

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 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'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: What is the future value of an 8%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: Interest rate (r) = 8% Annual payment (P) = $ 350 Number of annual payments (n) = 5

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

A:

Q: If you put up $38,000 today in exchange for a 6.75 percent, 14-year annuity, what will the annual…

A: Solution- We know that  PV=PMT[(1-(1+r)^-n)/r] Where PMT= Periodic payment r= rate n= number of…

Q: If you put up $37,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual…

A: Time value of money states that the worth of money in present is always more than that of future…

Q: What is the present value of a 3-year annuity of $200 if the discount rate is 5%?

A: Present Value of annuity refers to the present value of all the future payments of and series of…

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 future value of an annuity with annual cashflows of $4,000 for 38 years? The interest…

A: Future value of an annuity is the future value of stream of same annual cash flows which takes place…

Q: What’s the present valu

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

Q: At a discount rate of   6.00​%, find the present value of a perpetual payment of ​$   1,000 per…

A: Perpetual payment = $1000 Discount rate = 0.06   Discount rate = 0.03     Present value of the…

Q: How much will you need to invest annually to reach a savings goal of $300,000 at the end of 25…

A: n=25r=5%FV=300000

Q: Your insurance company offered you an annuity that pays you $100 at the end of each year. The life…

A: An annuity is an agreement between an individual and an insurance company in which the individual…

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: What is the future value of a 7%, 5-year ordinary annuity that pays $650 each year? Do not round…

A: Interest rate (r) = 0.07 Annuity period (n) = 5 years Annual payment (A) = $650 Future value = FV…

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: How much money will he need to deposit into the annuity each quarter for the annuity to have a total…

A: Future Value of Ordinary Annuity: It represents the future value of the annuity cash flows made at…

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.