Answered: What is the future value on December…

What is the future value on December 31, 2025, of 6 annual cash flows of $50,000 with the first cash flow being made on December 31, 2019, and interest at 9% compounded annually?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 10RE: If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32...

See similar textbooks

Related questions

Q: the final payment being on 1st of August 2024, total amount of the annuity is _ calculated on the…

A: Annuity is the fixed payment that an investor receives from an investment or fixed deposits made…

Q: What is the future value on December 31, 2024, of 6 annual cash flows of $50,000 with the first cash…

A: Future Value = C*(1+r)n, where C is the current cash flow, r is the periodic rate of interest and n…

Q: Finding the compound sum of $1,000 to be received at the beginning of each of the next 5 years…

A: The term annuity depicts a stream of equivalent periodic cash flows over a specific time duration.…

Q: What is the present worth of a 3 years annuity paying P3,000 at the end of each year, with interest…

A: Annuity is a series of uniform cash flows over a period of time.

Q: Present Value of an Annuity On January 1, you win $1,100,000 in the state lottery. The $1,100,000…

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

Q: Present Value of a Single Sum What is the present value on January 1, 2019, of $10,000 to be…

A: If you received $100 today and deposited it into a savings account it would grow over time to be…

Q: 2. Assume that on March 1, 2020 Floryn Company is to make annual investment of Php 200,000 for four…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: What annuity is required over 13 years to equate with a future amount og 30,000? Asssume i= 7%…

A: We need to use future value of ordinary annuity formula given below to calculate annuity. FVA…

Q: Determine the present value of $250,000 to be received at the end of each of four years, using an…

A: Present value refers to the current worth of an amount that is receivable in the future.

Q: An annuity pays $300 each on January 1 in the Year 2025, 2030, 2035, 2040 and 2045. The annual…

A: The sum of all succeeding, equal payments or deposits made at some point in the future represents…

Q: What is the present value of a $90,000 annual annuity for 10 years with an additional $1,000,000…

A: The present value of investment is the sum of present value of annuity and the present value of…

Q: Present Value of an Annuity Determine the present value of $340,000 to be received at the end of…

A: Present value will be calculated with the help of present value of $1 table and present value of an…

Q: Determine the combined present value as of December 31, 2021, of the following four payments to be…

A: Present value: The value of today’s amount to be paid or received in the future at a compound…

Q: EM-1 Future Value and Compound Interest Using the future value tables, solve the following.…

A: DEPOSIT =$40000 Period =7 years interest rate =12% Future value =Present value (1+r)n

Q: On 1 January 2019 the total present value of all the investments is R75,998.34. If the interest rate…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: What sum of money will be required to settle an obligation of P20,000 after 4 years and 3 months at…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Present value (in $) of an annuity due Annuity Payment Payment Frequency Time Period (years)…

A: The Present value of annuity due is calculated using the Present Value of Annuity due formula.

Q: Find the future value of an annuity when the payment is P13,750 quarterly, the interest is 6.5%…

A: Compounding is the process of crediting interest to both an existing principal amount and previously…

Q: You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective…

A: Present value of annuity = $10000 Interest rate (r) = 4% Annuity amount (A) = $500 Additional amount…

Q: Find the future value of an annuity due with an annual payment of $9,000 for two years at 7.5%…

A: future value of annuity due is a series of payments made at the beginning of each period

Q: C- What must YOU invest today to receive an annuity of $4,500 for 10 years compounded at 8%…

A: Here, present value of a quarterly annuity needs to be determined. Annuity “PMT” of $4500 every…

Q: Find the future value of a 15-year, $300 per year annuity at 6%.

A: Following details are given in the question regarding annuity : Annual Payment in annuity = $300…

Q: Find the future value at the end of Year 12 of an annuity that pays $7,500 per year for 12 years…

A: Using excel FV function

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: Present Value of an Annuity On January 1, you win $2,900,000 in the state lottery. The $2,900,000…

A: Present value of annuity can be calculated as: = Annuity payment * Present Value annuity factor (i%,…

Q: Calculate the present value on Jan 1, 2015 of an annuity of $500 paid at the end of each month of…

A: Present value tells how much money would be required now to fund future payment series.

Q: Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1.…

A: Future Value = Annuity Payments × [(1+r)n -1/ r]

Q: Complete this annuity due: (Round your answer to the nearest cent.) Amount of Payment Payment…

A: Annuity: An annuity is defined as a series of payments, whether received or made, that are equal and…

Q: Assume that Kathy is to make annual investments of P600,000 for three years. The interest for this…

A: Time value of money is a concept that helps in determining the value of future cash flows…

Q: Present Value of an Ordinary Annuity What is the present value on January 1, 2019, of 7 equal…

A: Annual Received = $30,000 Interest Rate(r) = 10% Installments (n) =7

Q: What is the present value on January 1, 2019, of 7 equal future annual receipts of $30,000 if the…

A: The value of investment on Jan 1, 2019 can be calculated with the help of present value of annuity…

Q: Present Value of an Annuity Determine the present value of $200,000 to be received at the end of…

A: The present value is the worth of cash flows at the present time computed on the basis of a given…

Q: Find the future value of an annuity due with an annual payment of $13,000 for three years at 5%…

A: Annuity means periodic payments and when periodic payments are at beginning of the period, the…

Q: Using the appropriate present value table and assuming a 12% annual interest rate, determine the…

A: An ordinary annuity refers to the equal payments made at the end of a fixed period i.e., yearly,…

Q: What is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: What is the future value on January 1, 2025, of $20,000 deposited on January 1, 2019, which…

A: Future Value(FV) is value of current amount at future date. It is computed by compounding that…

Q: Waterway Industries will receive $26500 today (January 1, 2020), and also on each January 1st for…

A: Total Present value is the sum of the present value of future cashflows Present value = future value…

Q: Using the appropriate present value table and assuming a 12% annual interest rate, determine the…

A: 1) Annual annuity payment: $5,000 Rate: 12% nper: 5 years The first payment is received on December…

Q: Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of…

A: Annual Payments = 120,000 N = 6 Beginning of period payments Annual Compounding Interest Rate = 15%…

Q: Present Value of an Annuity Determine the present value of $120,000 to be received at the end of…

A: ANSWER A) COMPUTATION OF PRESENT VALUE IN EACH 4 YEAR First year $ 114286 Second year $ 108844…

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Time 20 years…

A: Deposit = 1000 End of each year Time Period = 20 years Interest Rate = 3%

Q: What is the present value of a perpetuity with payments starting one year from now. The first…

A: A perpetuity is a type of security that pays a constant stream of fixed cash flows for an infinite…

Q: Calculate the future value of an Annuity immediate of Amount $522 paid Annually for 4 year at the…

A: An annuity is a plan which gives out fixed payments for a set period of time in exchange for a lump…

Q: A man bought an eapt casting P300k payable in 12 quarter payments with i = 24%, determine…

A: Loan = 300,000 N = 12 Quarters Annual Rate = 24% Interest Rate = Annual Rate / 4 = 24%/4 = 6% per…

Q: If you had deposited $1 in a bank account at an annual rate of 3.5%, at the beginning of 1905. How…

A: I/Y = Interest rate = 3.5% PV = Present value = 1 NPER = Number of periods = 2019 to 1905 = 115 CPT,…

Question

Future Value of an Annuity Due

What is the future value on December 31, 2025, of 6 annual cash flows of $50,000 with the first cash flow being made on December 31, 2019, and interest at 9% compounded annually?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

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?
Amount of an Annuity Beginning December 31, 2023, 5 equal annual withdrawals are to be made. Required: Using the appropriate tables, determine the equal annual withdrawals if 25,000 is invested at an interest of 12% compounded annually on: 1. January 1, 2023 2. December 31, 2023 3. January 1, 2020
Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits?
Present Value of an Annuity Ralph Benke wants to make 8 equal semiannual withdrawals of 8,000 from a fund that will earn interest at 11 % compounded semiannually. Required: How much would Ralph have to invest on: 1. January 1, 2019, if the first withdrawal is made on July 1, 2019 2. July 1, 2019, if the first withdrawal is made on July 1, 2019 3. January 1, 2019, if the first withdrawal is made on January 1, 2022
Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?
If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Cash Flow Amounts On January 1, 2019, Philip Holding invests 40,000 in an annuity to provide 8 equal semi-annual payments. Interest is 10%, compounded semiannually. Required: Compute the equal semiannual amounts that Philip will receive assuming that the first withdrawal is to be received on: July 1, 2019 January 1, 2019 July 1, 2022 January 1, 2024
Present Value of an Ordinary Annuity What is the present value on January 1, 2019, of 7 equal future annual receipts of $30,000 if the first receipt is received on January 1, 2020, and the interest rate is 10% compounded annually?
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2021, of a five-period annual annuity of $5,000 under each of the following situations:1. The first payment is received on December 31, 2022, and interest is compounded annually.2. The first payment is received on December 31, 2021, and interest is compounded annually.3. The first payment is received on December 31, 2022, and interest is compounded quarterly.