how do you calculate the present value annuity factor fir 8.25 pmt 13 years required return...
Homework Answers
The present value annuity factor (PVAF) is used to calculate the present value of future one dollar cash flows payment series. It is used for the purpose of simplifying the process of calculating the present value of an annuity.
Formula:
Calculation of PVAF for n= 13 Years and r = 11.2% (i.e. 0.112) & P= 8.25
Answer = $55.13
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do you calculate the present value annuity factor
fir 8.25 pmt 13 years required return...
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table will you use to obtain the present value factor to calculate
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a. What is the amount of the annuity purchase
required if you wish to receive a fixed payment of $270,000 for 15
years? Assume that the annuity will earn 10 percent per year.
b. Calculate the annual cash flows (annuity
payments) from a fixed-payment annuity if the present value of the
15-year annuity is $1.7 million and the annuity earns a guaranteed
annual return of 10 percent. The payments are to begin at the end
of the current year.
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receive five years from now. Which table will you use to obtain the
present value factor to calculate the present value of that
$1,000?
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value of $1,000 that you will receive five years from now. Which
table will you use to obtain the present value factor to calculate
the present value of that $1,000? A. Present Value of Ordinary
Annuity of $1 B. Future...
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