Question

What is the present value of a five-period annuity of $3,000 if the interest rate is...

What is the present value of a five-period annuity of $3,000 if the interest rate is 12%?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

poegent value of annuity 3000 x PVAR (12./. ,5 years) 12 3000 * 3.6040 = [10,814] Here PVAF (12%, 5 years) is the sum of Pres

Add a comment
Know the answer?
Add Answer to:
What is the present value of a five-period annuity of $3,000 if the interest rate is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • What is the interest rate of a 8 year, annual $3,000 annuity with present value of...

    What is the interest rate of a 8 year, annual $3,000 annuity with present value of $16,500? 9.17 percent 5.64 percent 11.32 percent 7.69 percent

  • Question 5 4 What is the present value of a five-period annuity of $4,000 if the...

    Question 5 4 What is the present value of a five-period annuity of $4,000 if the interest rate per period is 12% and the first payment is made today? $8,074.70 $7.209.55 $12.112.05 $16,149.40 $14,419.10 Question 6 6 A portfolio is comprised of 60% of Stock A and 40% of Stock B. What is the expected return of the portfolio? Return on stock B Scenario Recession Probability 5% Return on stock A -32% 4% Normal 80% 14% 8% Boom 15% 28%...

  • Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your...

    Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value of the Annuity $3,000 every year 20 4 annually $ Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value...

  • (1) Find the present value (one period before the first payment) of an annuity- immediate that...

    (1) Find the present value (one period before the first payment) of an annuity- immediate that lasts five years and pays $3,000 at the end of each month, using a nominal interest rate of 3% convertible monthly. Then repeat the problem using an annual effective discount rate of 3%. Which is higher? Why?

  • 4.What is the present value of the deferred annuity if the regular payment is P15,000.00 every...

    4.What is the present value of the deferred annuity if the regular payment is P15,000.00 every month, the interest rate is 8% compounded monthly, with an actual payments of 24, and the period of deferral is 12? 5. What is the present value of the deferred annuity if the regular payment is P5,000.00 every year, the interest rate is 5% compounded annually, with an actual payments of 6, and the period of deferral is 12? 6.What is the present value...

  • 4.What is the present value of the deferred annuity if the regular payment is P15,000.00 every...

    4.What is the present value of the deferred annuity if the regular payment is P15,000.00 every month, the interest rate is 8% compounded monthly, with an actual payments of 24, and the period of deferral is 12? 5.What is the present value of the deferred annuity if the regular payment is P5,000.00 every year, the interest rate is 5% compounded annually, with an actual payments of 6, and the period of deferral is 12? 6.What is the present value of...

  • 1.What is the present value of the deferred annuity if the regular payment is P25,000.00 every...

    1.What is the present value of the deferred annuity if the regular payment is P25,000.00 every 6 months, the interest rate is 0.25% compounded semi-annually, with an actual payments of 18, and the period of deferral is 12? 2.What is the present value of the deferred annuity if the regular payment is P5,000.00 every month, the interest rate is 5% compounded monthly, with an actual payments of 60, and the period of deferral is 20? Naa pay lain 3.What is...

  • 9.What is the present value of the annuity if the quarterly payment is P500.00 with an interest rate of 2% compounde...

    9.What is the present value of the annuity if the quarterly payment is P500.00 with an interest rate of 2% compounded monthly and the total payments is 25? 10.What is the present value of the annuity if the quarterly payment is P500.00 with an interest rate of 2% compounded monthly and the total payments is 25?

  • 8.What is the present value of the deferred annuity if the regular payment is P50,000.00 every...

    8.What is the present value of the deferred annuity if the regular payment is P50,000.00 every year, the interest rate is 2.5% compounded annually, with an actual payments of 20, and the period of deferral is 30? 9.What is the present value of the deferred annuity if the regular payment is P5,000.00 every month, the interest rate is 7% compounded monthly, with an actual payments of 15, and the period of deferral is 5? 10.What is the present value of...

  • For each of the following​ cases, calculate the present value of the​ annuity, assuming the annuity...

    For each of the following​ cases, calculate the present value of the​ annuity, assuming the annuity cash flows occur at the end of each year.   Annuity Interest Rate​ (%) Period​ (Yrs) Present Value​ ($) 32,000 14 8 20,000 9 14 Annuity Interest Rate​ (%) Period​ (Yrs) Present Value​ ($) 32,000 14 8 ____   ​(Round to the nearest​ cent.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT