Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 7, Problem 7.6E
a.
To determine
The present value of the given ordinary annuity.
b.
To determine
The present value of the given annuity due.
c.
To determine
The present value of given deferred annuity.
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Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period.
Annuity Payment
Annual Rate
Interest Compounded
Period Invested
1.
$4,000
7%
Annually
5 years
2.
9,000
8
Semiannually
3 years
3.
3,000
8
Quarterly
2 years
Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period.
Annuity Payment
Annual Rate
Interest Compounded
Period Invested
1.
$3,000
7%
Annually
6 years
2.
6,000
8
Semiannually
9 years
3.
5,000
12
Quarterly
5 years
ind the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)
$200 is deposited monthly for 10 years at 6% per year in an account containing $9,000 at the start
Chapter 7 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - If interest is compounded more than once a year,...Ch. 7 - Prob. 7.4QCh. 7 - Can an ordinary annuity table be used to determine...Ch. 7 - Prob. 7.6QCh. 7 - Is the present value of an ordinary annuity more...Ch. 7 - Prob. 7.8QCh. 7 - Simple Interest. Assume Shafer Corporation...Ch. 7 - Compound Interest. Assume Shafer Corporation...
Ch. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - Prob. 7.5BECh. 7 - Present Value of a Single Sum, Compound Interest....Ch. 7 - Future Value of a Single Sum, Compound Interest....Ch. 7 - Prob. 7.8BECh. 7 - Present Value of a Single Sum, Compounded Interest...Ch. 7 - Prob. 7.10BECh. 7 - Present Value of a Single Sum, Calculating Time...Ch. 7 - Future Value of an Ordinary Annuity. An...Ch. 7 - Future Value of an Annuity Due. Mariah Carey...Ch. 7 - Future Value of an Ordinary Annuity: Calculating...Ch. 7 - Present Value of an Ordinary Annuity. CB...Ch. 7 - Present Value of an Annuity Due, Semiannual...Ch. 7 - Prob. 7.17BECh. 7 - Ordinary Annuity, Annuity Due, Using Interest...Ch. 7 - Prob. 7.2ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Future Value of an Ordinary Annuity, Future Value...Ch. 7 - Single Sum, Solving for Other Variables. Two...Ch. 7 - Ordinary Annuity, Solve for Interest Rate,...Ch. 7 - Present Value, Note Payable Prices. Wiz Khalifa...Ch. 7 - Future Value of a Deterred Annuity. Lenny Shafer...Ch. 7 - Prob. 7.13ECh. 7 - Present Value of an Ordinary Annuity, Present...Ch. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Future Value of an Annuity Due, Decision Making....Ch. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.1PCh. 7 - Present Value, Present Value of an Ordinary...Ch. 7 - Present Value, Present Value of an Annuity Due,...Ch. 7 - Prob. 7.4PCh. 7 - Prob. 7.5PCh. 7 - Prob. 7.6PCh. 7 - Prob. 7.7PCh. 7 - Present Value of an Annuity Due, Deferred...Ch. 7 - Present Value of an Ordinary Annuity, Present...Ch. 7 - Future Value of an Ordinary Annuity, Deferred...Ch. 7 - Present Value, Present Value of an Ordinary...Ch. 7 - Prob. 7.12PCh. 7 - Prob. 7.13PCh. 7 - Expected Cash Flows. Hiteck Electronics sells a...Ch. 7 - Prob. 7.15P
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Similar questions
- Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?arrow_forwardGive typing answer with explanation and conclusion Determine the periodic payment for the following deferred annuity. The annuity is an ordinary annuity following the period of deferral. Deferral period Payment interval (months) Interest rate (%) Compounding frequency Term (years) Present value ($) 27 months 1 6.4 Quarterly 20 50,000.00arrow_forwardFind the present value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $2900 1 year 6 years 7% quarterlyarrow_forward
- Complete the ordinary annuity. Amount of payment = $12,100 Payment Payable = Semiannually Years = 9 Interest Rate = 6%arrow_forwardFind the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $1,700 is deposited quarterly for 20 years at 7% per yeararrow_forwardComplete present value of an ordinary annuity: (Round your answer to the nearest cent.) Amount of Annuity Expected Payment Payable Years Interest Rate earned Present value $8,500 Semiannually 4 10%arrow_forward
- Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $1,200 is deposited quarterly for 20 years at 6% per year FV = $arrow_forwardFind the difference between the sums of annuity due and ordinary annuity for the following data: Periodic payment = P 14,000; Term = 15 years; Interest rate = 10% compounded quarterly. P 63,992 O P 53,992 P 47,598 O P 37,598arrow_forwardPresent value (in $) of an annuity due Nominal Annuity Payment Time Present Value Payment Frequency Interest Period (years) Rate (%) Compounded of the Annuity $1,300 every year 5.7 annuallyarrow_forward
- Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $1600/semiannual period for 6 years at 3.5%/year compounded semiannuallyarrow_forwardFind the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposit. M= $200 N=annually R=9% T=20 Answer choices: A.) 10,232.02 B.) 133,577.37 C.)11,258.31 D.)11,610.43 E.)9,664.34arrow_forward
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