Homework Answers
ANSWER:
Given that
10 year annuity immediate pays 100 quarterly for first five years
The annuity immediate pays 300 quarterly for next five years
Here,
the nominal annual interest of 8% convertible quarterly
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Problem 2.10 A 10-year annuity-immediate pays 100 quarterly for the first five years. Starting year 6,...
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%
An annuity immediate pays $500 per month for the first three years.
An annuity immediate pays $500 per month for the first three years. After that the annuity payments increase by $50 per month for five years and then remain level for an additional six years. At a nominal rate of annual interest of 12% convertible monthly what is the present value of this annuity?
An annuity immediate pays $500 per month for the first three years. After that the annuity...
An annuity immediate pays $500 per month for the first three years. After that the annuity payments increase by $50 per month for five years and then remain level for an additional six years. At a nominal rate of annual interest of 12% convertible monthly what is the present value of this annuity? The answer in the back is: 140339.571
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...
(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?
(1 point) An annuity-immediate makes payments of 200 per year payable quarterly for 8 years at...
(1 point) An annuity-immediate makes payments of 200 per year payable quarterly for 8 years at an effective annual interest rate i = 3%. The accumulated value of this annuity is AV = (1 point) An annuity makes payments of 1700 at the end of every 9 years over 81 years at a nominal annual interest rate of 5.6% compounded quarterly. The present value of this annuity is PV =
An annuity-immediate pays 40 per year for 10 years, then decreases by 2 per year for...
An annuity-immediate pays 40 per year for 10 years, then decreases by 2 per year for 9 years. At an annual effective interest rate of 6%, the present value is equal to X. Calculate X.
An annuity-immediate pays 40 per year for 10 years, then decreases by 2 per year for...
An annuity-immediate pays 40 per year for 10 years, then decreases by 2 per year for 9 years. At an annual effective interest rate of 6%, the present value is equal to X. Calculate X.
Problem 2.9 An annuity immediate has semi-annual payments of 1,000 for 25 years at a rate...
Problem 2.9 An annuity immediate has semi-annual payments of 1,000 for 25 years at a rate of 6%, convertible quarterly. Find the present value.
Two annuities have equal present values. The first is an annuity-immediate with quarterly payments of $X...
Two annuities have equal present values. The first is an annuity-immediate with quarterly payments of $X for 10 years. The second is an increasing annuity-immediate with 10 annual payments, where the first payment is $500 and subsequent payments increase by 10% per year. Find X if the annual effective interest rate is 5%. (Answer: 188.28)
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%
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...
(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?
(1 point) An annuity-immediate makes payments of 200 per year payable quarterly for 8 years at an effective annual interest rate i = 3%. The accumulated value of this annuity is AV = (1 point) An annuity makes payments of 1700 at the end of every 9 years over 81 years at a nominal annual interest rate of 5.6% compounded quarterly. The present value of this annuity is PV =
An annuity-immediate pays 40 per year for 10 years, then decreases by 2 per year for 9 years. At an annual effective interest rate of 6%, the present value is equal to X. Calculate X.
An annuity-immediate pays 40 per year for 10 years, then decreases by 2 per year for 9 years. At an annual effective interest rate of 6%, the present value is equal to X. Calculate X.
Problem 2.9 An annuity immediate has semi-annual payments of 1,000 for 25 years at a rate of 6%, convertible quarterly. Find the present value.
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