You have an annuity  that pays $15 per year for 61 years. What is the future value (FV) of this annuity at the end of that 61 years given that the discount rate is 10%?

Q: You may purchase an annuity that will pay you 300000 in income per year starting one year from now…

A: Given, Payment amount (PMT) = 300,000 Number of payments (n) = 22 Interest rate (i) = 4%

Q: Suppose you are going to receive $13,500 per year for five years. The interest rate is 8.4% a. What…

A: PV of Ordinary Annuity = 13500*a<5> = 13500*(1-(1+i)^-5)/i = 13500*(1-1.084^-5)/0.084 =…

Q: What is the PV of an ordinary annuity with 10 payments of $7,900 if the appropriate interest rate is…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: After carefully exmaining your budget, you determine you can manage to set aside $370 per year. You…

A: Introduction: Contribution to an annuity: It refers to the series of payments made to have the…

Q: What is the present value of a constant perpetuity of $17 per year if the discount rate is 10…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…

Q: If you put 45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual cash…

A: Present Value = 45,000 Rate = 6.4% Time period = 15 ye

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: After carefully exmaining your budget, you determine you can manage to set aside $350 per year. You…

A: Introduction: Future Value of Annuity Due: Future value: The value of an investment made today, with…

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: If interest rate is 10% per year, which one of the following annuities give maximum benefit and…

A: In the given question, different set of annuities having different time periods and amounts is…

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: 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: Calculate the future value of the following annuities, then answer the questions that follow. What…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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: Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per…

A: Since you have not mentioned the specific question we will just answer the first question in case…

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: A perpetuity will make its first payment in 20 years. The first payment will be $5,000, and future…

A: Perpetuity means a series of infinite numbers of payments of the same size occurs in an equal…

Q: You are considering investing in a security that will pay you $1000 in 30 years. If the appropriate…

A: Excel Spreadsheet:

Q: The present value of an annuity is the sum of the discounted value of all future cash flows. You…

A: Given: Particulars Amount Amount Amount Amount Years (NPER) 10 10 10 10 Interest…

Q: Compute the present value (PV) of an annuity that pays $320 forever if the opportunity cost is 8 per…

A: Given details are : Annual cashflow = $320 Opportunity cost = 8% = 0.08 From above details we…

Q: hat is the present value of a perpetuity paying $1500 each year, if the effective annual interest…

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

Q: What is the relationship between the value of an annuity and the level of the interest rate? Suppose…

A: The question gives the following information:

Q: If you buy an ordinary annuity that will pay you 4,000 a year for the next 20 years with an annual…

A: Annual payment (P) = 4000 Number of annual payments (n) = 20 Annual interest rate (r) = 8%

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: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: Using The Future value function in excel

Q: the future value of an ordinary annuity

A: 1. FV of Ordinary Annuity​=C×(1+i)n−1​/i where: C=Cashflow per period i= interest rate n= number…

Q: An annuity pays $13 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: The future value is the value of the annuity payments at the end of the annuity term.

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

A: PV computes the existing value of future benefits by discounting future cash flows with a given…

Q: You are offered an annuity that will pay $11,000 per year for 24 years (the first payment will occur…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Compute the present value (PV) of an annuity that pays $320 forever if the opportunity cost is 10…

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: Suppose you save $500 per year at the end of each year for 15 years and earn 8.25% interest per…

A: When a payment is made repeatedly at regular time intervals it is referred to as Annuity. Present…

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: What is the present value of a perpetuity that pays $50 annually and has an annual rate of return of…

A:

Q: Assume that you are offered an annuity that pays $100 at the end of each year for10 years. You could…

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

Q: You have the opportunity to invest in several annuities. Which of the following 10-year annuities…

A: Annuities are payment received at fixed intervals for fixed periods of time.

Q: you want to buy an ordinary annuity that will pay you $4,000 a year for the next 20 years. You…

A: the maximum price you would be willing to pay for the annuity is its present value. in an ordinary…

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: Suppose an annuity will pay $11,000 at the beginning of each year for the next 7 years. How much…

A: Annuity refers to the periodic payment which can be made monthly, quarterly, semi-annually or…

Q: Suppose you are going to receive $13,000 per year for 7 years. The appropriate interest rate is 8…

A: Present value of annuity is the present value of all the stream of cash flows that occur in future.…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.