Find the present value of the following ordinary annuity.
Periodic payment | Payment Interval | Term | Interest Rate | Conversion period |
$2900 | 3 months | 8 years | 8% | annually |
The present value is $____?
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Information provided:
Periodic payment= $2,900
Time= 8 years*4= 32 quarters
Interest rate= 8%/4= 2% per quarter
Ordinary annuity refers to an annuity that occurs at the end of the period.
The present value of the ordinary annuity is calculated by entering the below in a financial calculator:
PMT= 2,900
N= 32
I/Y= 2
Press the CPT key and PV to compute the present value of the ordinary annuity.
The value obtained is 68,058.17.
Therefore, the present value of the ordinary annuity is $68,058.17.
In case of any query, kindly comment on the solution.
Find the present value of the following ordinary annuity. Periodic payment Payment Interval Term Interest Rate...
Find the future value of the following ordinary simple annuity. Periodic Payment Payment Interval Term Interest Rate $675.00 8 years 7% Conversion Period semi-annually 1 2 year The future value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $2900 1 month 5 years 9 % semi-annually
Determine the size of the periodic payment of the following ordinary general annuity. Present Value Payment Period Term of Annuity Interest Rate Conversion Period monthly $14,700 3 months 3 years, 6 months 3.4% The periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places
Find the future value of the following ordinary simple annuity. Periodic Payment - $480.00 Payment Interval - 3 months Term - 10.25 years Interest Rate - 5% Conversion period - Quarterly The future value is $___ ? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Find the future value of the following ordinary annuity Periodic Payment Term Interest Rate Conversion Рayment Interval Period 13 years $1450 1 year 9% quarterly The future value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Find the present value of the following ordinary annuity. Term Interest Rate Periodic Payment $2900 Payment Interval 6 months 6 months 4 years 4% Conversion Period quarterly Period 4 years 4%
Find the future value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $1775 6 months 1313 years 9 % quarterly
Find the future value of the following ordinary simple annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $444.00444.00 3 months3 months 3.753.75 years 77 % quarterlyquarterly
7. How much interest is included in the future value of an ordinary simple annuity of $1,350 paid every six months at 6% compounded semi-annually if the term of the annuity is 2 years? The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 8. Glenn has made contributions of $250 at the end of every three months into an RRSP for ten years. Interest for...
compute the nominal rate of interest for the following ordinary simple annuity. future value= $3200.00 periodic rent= $732.00 payment interval= $1 year term= 4 years conversion period= annually