ZuoTi.Pro
Question

A 19-year annuity pays $1,300 per month, and payments are made at the end of each...

A 19-year annuity pays $1,300 per month, and payments are made at the end of each month. The interest rate is 11 percent compounded monthly for the first Five years and 10 percent compounded monthly thereafter.

  

Required:
What is the present value of the annuity?


rev: 09_17_2012

$177,098.00

$125,088.20

$130,193.84

$1,531,692.22

$127,641.02

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard Alignment Number Cells Edting PS107 Formula Bar PM PN PO PQ PR PS PT PU PV PY 90 91 92 93 94 95 96 97 98 PMT YEARS RATE FOR FIRST 5 YEARS YEARS RATE FOR NEXT 14 YEARS YEARS NO OF PERIODS IN A YEAR 1300 19 11% 10% 12 FIRST WE HAVE TO CALCULATE PRESENT VALUE OF 1300 PER MONTH RECEIVED FROM 6TH YEAR TO 19TH YEAR (14 YEARS) 100 101 102 103 104 105 106 107 108 il 1 r n CALCULATOR ( LOAN OPTIONS | pv, fy, annuity i CAP STRU VALUE PRESENT VALUE AT THE END OF 5 YEARS 1,17,307.06 EXCEL PV(PP95/PP97,PP96*PP97,-PP91)] NOW WE HAVE TO CALCULATE PRESENT VALUE OF 1300 OF FIRST 5 YEARS AND ALSO PRESENT VALUE OF AMOUNT OF 14 YEARS, RECEIVED ABOVE PRESENT VALUE S 1,27,641.02 PV(PP93/PP97,PP94*PP97,-PP91,-PP102) ANSWER $1,27,641.02 BOX | DILUTION DOLLAR COST AVG MORTGAGE.. EXPO ( Sheet1 . Sheet2. Shell- rences: x261 05:24

1 0
Add a comment
Know the answer?
Add Answer to:
A 19-year annuity pays $1,300 per month, and payments are made at the end of each...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • A 16-year annuity pays $1,300 per month, and payments are made at the end of each...

    A 16-year annuity pays $1,300 per month, and payments are made at the end of each month. The interest rate is 13 percent compounded monthly for the first six years and 12 percent compounded monthly thereafter. What is the present value of the annuity?

  • A 15-year annuity pays $2,000 per month, and payments are made at the end of each...

    A 15-year annuity pays $2,000 per month, and payments are made at the end of each month. The interest rate is 11 percent compounded monthly for the first Six years and 9 percent compounded monthly thereafter. Required: What is the present value of the annuity? $181,632.49 $185,265.14 $2,179,589.93 $177,999.84 $252,753.46 <This was wrong

  • 9. A 15-year annuity pays $1,500 per month, and payments are made at the end of...

    9. A 15-year annuity pays $1,500 per month, and payments are made at the end of each month. If the interest rate is 13% compounded monthly for the first seven years, and 10% compounded monthly thereafter, what is the present value of the annuity? (16 Marks)

  • If you could include work and formulas that would be great, thanks! A 9-year annuity pays...

    If you could include work and formulas that would be great, thanks! A 9-year annuity pays $3,000 per month, and payments are made at the end of each month. The interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter. What is the present value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present valuc References eBook & Resources

  • Suppose payments were made at the end of each month into an ordinary annuity earning interest...

    Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 8%/year compounded monthly. If the future value of the annuity after 14 yr is $70,000, what was the size of each payment? (Round your answer to the nearest cent.) $ Need Help? Read Talk to Tuter 5. (-/0.1 Points) DETAILS TANAPMATH5 4.3.018. MY NOTES PRACTICE ANOTHER Suppose payments will be made for 4 years at the end of each month...

  • 1. Consider a 7-year ordinary annuity that pays $4,000 per month with the first payment made...

    1. Consider a 7-year ordinary annuity that pays $4,000 per month with the first payment made one month from now. If the appropriate discount rate is 12 percent compounded quarterly, what is the value of this annuity 2 years from now? 2. Consider the series of uneven cash flows below: End of Month June JulytSeptember October November Cash Flow$2,300,000 S1,600,000 $2,750,000 3,200,000 $200,000 $7,720,000 If the effective annual rate (EAR) is 4.5 percent, what is the future value of the...

  • 1. (a) You are offered an annuity that pays $200 at the end of each month, starting at the end of the current month and...

    1. (a) You are offered an annuity that pays $200 at the end of each month, starting at the end of the current month and lasting for four years. The annual interest rate is 3.2% compounded monthly. What is the present value of this annuity? (b) Suppose you need the payments from question 1a to occur at the start of each month. What is the new present value? (c) A third annuity has the same payment schedule and interest rate...

  • Suppose payments will be made for714years at the end of each month...

    Suppose payments will be made for 7(1/4) years at the end of each month from an ordinary annuity earning interest at the rate of 5.75%/year compounded monthly. If the present value of the annuity is $48,000, what should be the size of each payment from the annuity? (Round your answer to the nearest cent.)

  • Suppose payments will be made for 9¼ years at the end of each month

    Suppose payments will be made for 9¼ years at the end of each month from an ordinary annuity earning interest at the rate of 3.25%/year compounded monthly. If the present value of the annuity is $49,000, what should be the size of each payment from the annuity? (Round your answer to the nearest cent.)

  • ​Suppose payments will be made for 7¼ years at the end of each month

    Suppose payments will be made for 7¼ years at the end of each month from an ordinary annuity earning interest at the rate of 4.25%/Year compounded monthly. If the present value of the annuity is $44,000, what should be the size of each payment from the annuity? (Round your answer 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