You bought an annuity selling at $17,390.08 today that promises to make equal payments at the beginning of each year for the next eight years (N). If the annuity’s appropriate interest rate (I) remains at 5.00% during this time, then the value of the annual annuity payment (PMT) is .

Q: Calculate the future value of an ordinary annuity consisting of annually payments of $1,500 for 6…

A: An ordinary annuity is that annuity in which payments are made at the end of each period.

Q: you have a 12-year annuity paying $496 quarterly in 10 years when interest is 6.65% compounded…

A: Number of annuity payments = Number of years * time period of Payment = Number of years * Quaterly…

Q: A 10-year annuity-due with quarterly payments has a first payment of 1000. The next five payments…

A: First payment = $ 1000 Next 5 payments = $ 1000 Growth rate in payments after 6 payments = 5.06%…

Q: The future value is $

A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n  - 1) /interest…

Q: Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if…

A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…

Q: n annuity pays $500 per year for 12 years beginning one year from today. What is th alue of the…

A: The present value of annuity is the equivalent value that is equal to payment to be done considering…

Q: A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is…

A: Computation of perpetuity at t=4:

Q: Find the future value of an ordinary annuity of $6,000 paid quarterly for 2 years, if the interest…

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

Q: Suppose an annuity at 5% compounded semi-annually will pay $5000 at the end of each 6-month period…

A: The annuity refers to the series of regular payments that last for a specific period of time. The…

Q: What is the present value of an annuity that consists of 24 semiannual payments of $8000 at the…

A: Present value is the current value of future cash flow with respect to time value of money.

Q: What is the present value of a $775 annuity payment over six years if interest rates are 11 percent?

A: In this question we need to compute the present value of annuity payment from below details: Annuity…

Q: If the present value of an ordinary, six-year annuity is $8,500 and the interest rates are 9.5…

A: Given: Resent value of Ordinary Annuity = $8500 Interest Rate = 9.5% Time =6 years So, the value of…

Q: Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at…

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

Q: Find the future value of an ordinary annuity of $300 paid quarterly for 8 years, if the interest…

A: Solution: Future value of annuity is the future value of a series of payments of equal amount at…

Q: You expect to make equal payments of $3460.00 at the end of each semi-annual period over the next 3…

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

Q: -year annuity pays $940 per month at the end of each month. For the first seven years, the nominal…

A: The more is compounding the more is the effective interest rate and more is the future value of…

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: A one-year annuity that pays $100 semi-annually will starts its payment in 6 months from now. APR is…

A: Present Value of  Ordinary Annuity refers to the concept which dictates the discounted value of a…

Q: Assume that you make quarterly payments of $ 750 into an annuity paying 9% interest compounded…

A: Quarterly payment = $750 Interest rate = 9% Quarterly rate = 0.09/4 = 2.25% Time =10 years Quarterly…

Q: certain annuity pays 80.00 at the end of every 3

A: The nominal rate can be computed as follows :

Q: what's the future value of the same annuity due?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: If you want to be paid from a l13 year ordinary annuity with a guaranteed rate of 3.09% compounded…

A: The annuity refers to the series of payments or receipts that last over a specific period of time.…

Q: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…

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

Q: Acme Annuities recently offered an annuity that pays 4.2% compounded monthly. What equal monthly…

A: given information  interest rate = 4.2 = 4.2100 = 0.042   monthly rate = 0.04212 = 0.0035  future…

Q: You are considering an annuity which costs $120,000 today. The annuity pays $13,255 a year at an…

A: Given: Present value of Annuity=$120000Annuity =$13255Interest rate (r)=9.75%

Q: Acme Annuities recently offered an annuity that pays 3.6% compounded monthly. What equal monthly…

A: Each period payment is considered as PMT.

Q: Acme Annuities recently offered an annuity that pays 5.4% compounded monthly. What equal monthly…

A: We need to use future value of ordinary annuity formula to calculate monthly deposit or payment. PMT…

Q: Acme Annuities recently offered an annuity that pays 5.4% compounded monthly. What equal monthly…

A: The monthly payment required to reach the target can be calculated with the help of future value of…

Q: Assume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded…

A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…

Q: What is the present value of an annuity consisting of payments of $800 every month for 8 years, with…

A: Present value is the current worth of the amount that  is deposited or received in some future date…

Q: The present value of an annuity is payable annually for 2 years, with the first payment at the end…

A: Value of an annuity refers to nominal worth for each payment. It implies for amount at which annuity…

Q: An investor will receive an annuity of $3,500 a year for 12 years. The first payment is to be…

A: First find the present value of the annuity A = R *(1+i)^n -1 / i*(1+i)^n

Q: You are considering an annuity that costs $91,288 today. The annuity pays $6,500 a year at an annual…

A: The length of the annuity will depend upon the costs of the annuity, the periodic payment, and the…

Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: Annuity means number of payments made at equal interval of time and equal in size. Ordinary annuity…

Q: What is the present value of a perpetuity consisting of equal payments of $66 every 3 months, where…

A: The present value of the perpetual annuity is the current worth of a cash flow series continuing…

Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, r= rate of interest i.e. 9%/12 = 0.75% or…

Q: An annuity pays $15 per year for 60 years. What is the future value of this annuity at the end of…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Suppose payments will be made for  5 1 4  years at the end of each month from an ordinary annuity…

A:

Q: Suppose payments will be made for 6 1/4 years at the end of each month from an ordinary annuity…

A: given, n=6.25 m=12 r=4.25% PVA =$46,000

Q: An increasing annuity makes annual payments, and the first payment occurs in 6 months. The annuity…

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

Q: A growing monthly perpetuity will start 6 months from today.  If the discount rate is 6% APR…

A: A perpetuity is a payment method that pays a fixed periodic amount in the future for a lump sum…

Q: Suppose the interest rate is 9% APR with monthly compounding. Then the present value of an annuity…

A: Present Value of annuity = P* [1-{1/(1+r)^n}] / r where, P= annuity amount  r =rate per period i.e.…

Q: A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is…

A: The question is based on the concept of perpetuity payment and concept of time value of money.Future…

Q: Find the future value of an ordinary annuity of $2,000 paid quarterly for 2 years, if the interest…

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

Q: You expect to make equal payments of $ 9020.00 at the end of each of the next 6 years (ordinary…

A: Future value of ordinary annuity = Annual payment x [(1 + i)n - 1]/i