What's the future value of an 8%, 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 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: A company wants to determine how much it should pay to purchase a particular ordinary annuity today.…

A: Formula for finding PV  PV=Payment per month*[{1-{1+interest rate)^(-Time period)}}/interest rate]…

Q: An annuity will pay four annual payments of $100, with the first payment to be received three years…

A: Definition:

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 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’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: 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: 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: An investor wants to save money to purchase real estate. He buys an annuity with quarterly payments…

A: Here, Quarterly Payment is $163 Interest Rate (r) is 5.5% Compounding Period (m) is Quarterly i.e 4…

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: 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 future value of a 6%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

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 will be the value in your account at the end of Year 30?

A: Future Value of Annuity: It represents the future worth of the annuity payments made for a given…

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 a $900 annuity payment over five years if interest rates are 8 percent?…

A: The accumulated value can be calculated as future value of annuity

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: What is the current worth of this annuity?

A: Calculation of present value of future cash flows: Year Annual cashflows PV factor @7% Discounted…

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: 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: 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 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: Use graphical approximation techniques to answer the question. When would an ordinary annuity…

A: An annuity is a type of contract usually used in the insurance industry. It provides a periodic…

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 of $7,100 per year, with the first cash flow received three…

A: Calculation of Present Value of Annuity:The cash flow is received in the third year.The present…

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: a. What is the present value of a 3-year annuity of $110 if the discount rate is 5%? (Do not round…

A: Annuity means a contract in which the financial institution pays an amount that gives the fixed…

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: The present value of an annuity is payable for 4 years, with the first payment at the end of 10…

A: An annuity is a series of payments for a certain period of time and at a certain rate of interest.…

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 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 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: What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the…

A: The perpetuity is the annuity that happens for a perpetual period. In other words, it is the equal…

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 present value of an ordinary, 6-year annuity is $8,800 and interest rates are 9.5 percent,…

A: An annuity due is a type of annuity in which payments are made at regular time interval and at the…

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: An investor wants to save money to purchase real estate. He annuity with quarterly payments that…

A: Future value of annuity includes the amount deposited and amount of interest accumulated over the…

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 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…

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%