Question


--- -- V I U O TOLUL 21 IUL U LL. ) A continuously paying level annuity pays $72 each year for twenty years. The force of int
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Present value of this annuity is 72 sºv(t)dt Here, v(t) = -5.5/(3+2r)dr = e-5/2ln (3+2r)16 Solving, we get v(t) =(22) ) The a

Add a comment
Know the answer?
Add Answer to:
--- -- V I U O TOLUL 21 IUL U LL. ) A continuously paying level...
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
  • ~11 A Ă B I u ov i Av Desktop ALP Ao ... V lell me...

    ~11 A Ă B I u ov i Av Desktop ALP Ao ... V lell me what you want to do Ev Ev v ... A Styles - e Firm Cullumber Company issued $1,300,000, 11-year bonds and agreed to make annual sinking fund deposits of $75,300. The deposits are made at the end of each year into an account paying 9% annual interest. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will...

  • what is v and why do i need to multiply it by the decreasing annuity? 5....

    what is v and why do i need to multiply it by the decreasing annuity? 5. An annuity-immediate pays 20 per year for 10 years, then decreasing by 1 per year for 19 years. At an annual effective interest rate of 6%, the present value is equal to X. Calculate X. (A) 200 (B) 205 (C) 210 (0) 215 (E) 220 X = 120aa+v(Da) =147.20+0.5584(130.6981) = 220.18 Answer E why y 19-a 1916% -19 - 11.1581C-130.64 .06

  • Since it wasn't answered (ran out of time), I changed my question so that ONLY the...

    Since it wasn't answered (ran out of time), I changed my question so that ONLY the correct answers are on here. Question 1 Interest is the difference between the amount borrowed and the principal. FALSE Question 2 Compound interest is computed on the principal and any interest earned that has not been paid or withdrawn. TRUE Question 3 When the periodic payments are not equal in each period, the future value can be computed by using a future value of...

  • Insert ome Draw Page Layout Formulas Data Review View X Calibri (Body) A A 12 General...

    Insert ome Draw Page Layout Formulas Data Review View X Calibri (Body) A A 12 General Paste I U A- $% 9 Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recove Part I: You have just won the state lottery and have two choices for collect fx 1 X A D E F Part I: You have just won the state lottery and have two choices for collecting your winnings....

  • 8.3-8.6. Using the Finance Formulas potage 2 of 21 15. Suppose you invest $5,000 in a...

    8.3-8.6. Using the Finance Formulas potage 2 of 21 15. Suppose you invest $5,000 in a savings account that pays an annual interest rate of 4%. If the interest is compounded monthly, what is the balance in the account after 10 years? 16. You invest $5000 at 2.2% annual interest compounded quarterly. How much do you have after 5 years? 17. Against expert advice, you begin your retirement savings at age 40. You plan on retiring at age 65. How...

  • Solve the problem. 20) You have a $4286 credit card debt, and you plan to pay it off through monthly payments of S80. If you are being charged 13% interest per 20 year, how long (to the nearest t...

    Solve the problem. 20) You have a $4286 credit card debt, and you plan to pay it off through monthly payments of S80. If you are being charged 13% interest per 20 year, how long (to the nearest tenth of a year) will i take you to repay your debt? Find the present value of the ordinary annuity. 21)Payments of $3300 made annually for 2) 25 years at 7% compounded annually Find the future value of the annuity due. 22)_...

  • I need help on question 2. MODULE IV: TIME VALUE OF MONEY INTRODUCTION The time value...

    I need help on question 2. MODULE IV: TIME VALUE OF MONEY INTRODUCTION The time value of money analysis has many a lysis has many applications, ranging from setting hedules for paying off loans to decisions about whether to invest in a partie financial instrument. First, let's define the following notations: I = the interest rate per period Na the total number of payment periods in an annuity PMT = the annuity payment made each period PV = present value...

  • Delete T P Y т U O Enter G H J к L Problem Set 2...

    Delete T P Y т U O Enter G H J к L Problem Set 2 1, a, For each of the following annuities, calculate the annual cash flow. Cash Flow Present Value Years $32,400 6 $29,650 8 $159,500 20 $230,700 22 Interest Rate 10% 8% 13% 12% b, For each of the following annuities, calculate the present value. Cash Flow Present Value Years $2,250 $1,355 $12.205 $31,400 7 9 14 30 Interest Rate 8% 7% 9% 11% Interest Rate...

  • Time Value of Money Spreadsheet Example 4 Module IV Name: Date: 6 7 8 Question 1 9 Question 2 10 Question 3 11 Question...

    Time Value of Money Spreadsheet Example 4 Module IV Name: Date: 6 7 8 Question 1 9 Question 2 10 Question 3 11 Question 4 12 Question 5 13 Question 6 14 Question 7 15 Question 8 16 Question 9 17 Question 10 18 19 20 Single Amount or Annuity 21 Periodic Interest Rate 22 Number of Periods 23 24 25 Present Value of Single Amount 26 27 Future Value of Single Amount 28 29 Future Value of An Annuity...

  • А в c D E F G H E An investment offers $6,100 per year for...

    А в c D E F G H E An investment offers $6,100 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever? 6,100 Payment per year # of years Required rate of return # of years # of years Complete the following analysis. Do not...

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