Please ignore number 3, it posted twice. Actual question is number 4 shown below: 3. Find...

Question

Question

3. Find the present value of a 30-year annuity-immediate which pays $2,000 each year. Assume an effective annual interest rat

Please ignore number 3, it posted twice.
Actual question is number 4 shown below:

3. Find the present value of a 30-year annuity-immediate which pays $2,000 each year. Assume an effective annual interest rat

Answer 1

Answer #1

Ahomea The present value of a 30 year annuity - iuramediate which pays $2000 each year at interest rate of 8% is given as bel

Answer 2

Similar Homework Help Questions

3. Find the present value of a 30-year annuity-immediate which pays $2,000 each year. Assume an...

3. Find the present value of a 30-year annuity-immediate which pays $2,000 each year. Assume an effective annual interest rate of 8%
please explain the ubderlined step and include the formula used to get there 3. A perpetuity-immediate...

please explain the ubderlined step and include the formula used to get there 3. A perpetuity-immediate pays 100 per year. Immediately after the fifth payment, the perpetuity is exchanged for a 25-year annuity-immediate that will pay X at the end of the first year. Each subsequent annual payment will be 8% greater than the preceding payment. The annual effective rate of interest is 8%. Calculate X. (A) 54 (B) 64 (C) 74 (D) 84 (E) 94 PV = 100 w...
(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?

Please show the work/formulas. Problem 26.30 | 3.570 At an annual effective interest rate of i,...

Please show the work/formulas. Problem 26.30 | 3.570 At an annual effective interest rate of i, the present value of a perpetuity- immediate starting with a payment of 200 in the first year and increasing by 50 each year thereafter is 46,530. Calculate i. Problem 27.1 1825.596 A 20 year increasing annuity due pays 100 at the start of year 1, 105 at the start of year 2, 110 at the start of year 3, etc. In other words, each...
• An annuity immediate pays 15 at the end of years 1 and 2, 14 at...

• An annuity immediate pays 15 at the end of years 1 and 2, 14 at the end of years 3 and 4 and so on. • The payments decrease by 1 every second year until nothing is paid. • The effective annual interest rate is 6%. Calculate the present value of this annuity.
Find the present value of an annuity immediate such that payments start at 10 and increase...

Find the present value of an annuity immediate such that payments start at 10 and increase by annual amounts of 10 to a payment of 100. Then payments decrease by 20 to a final payment of 40. Assume an effective rate of interest of 4%

Additional Problems: 1. An annuity immediate pays 500 every year for 10 years. Calculate the present...

Additional Problems: 1. An annuity immediate pays 500 every year for 10 years. Calculate the present value at the following rates of interest: a. Annual effective interest rate of 6% b. Nominal interest rate convertible monthly of 8% C. Nominal rate of discount convertible once every two years of 4%
Find the present value of a ten-year annuity which pays $500 at the beginning of each...

Find the present value of a ten-year annuity which pays $500 at the beginning of each quarter for the first 4 years, and then $400 at the beginning of each quarter for the remain years. The annual effective interest rate is 7%. Round your answer to two decimal places
Find the present value of a ten-year annuity which pays $600 at the beginning of each...

Find the present value of a ten-year annuity which pays $600 at the beginning of each quarter for the first 6 years, and then $500 at the beginning of each quarter for the remain years. The annual effective interest rate is 6%. Round your answer to two decimal places. 19865.60 x

W6: Problem 8 Previous Problem ListNext (1 point) a) Find the present value of an annuity-immediate...

W6: Problem 8 Previous Problem ListNext (1 point) a) Find the present value of an annuity-immediate which pays 1 at the end of each half-year for 9 years, if the rate of interest is 72% convertible semiannually for the first 5 years and 11.3% convertible semiannually for the last 4 years ANSWER (round off to three decimal digits): b) Find the present value of an annuity-immediate which pays 1 at the end of each half-year for 9 years, if all...