Question

9. You are offered an annuity that will pay $24,000 per year for 11 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today? AnnPay - 24,000 DR = 13 S 134PMT -24,00 world tried It Yrs 86-59 CK NO 1 FV-O Current value of annuity in 136,486.59 10. If you deposit $16,000 per year for 12 years (each deposit is made at the end of each year) in an account that pays an annual interest rate of 14%, what will your account be worth at the end of 12 years? PMT= -16,0000 1b, bu Pro I=117 CPTFV6 436,881.98 N=12 11. You plan to borrow $389,000 now and repay it in 25 equal annual installments (payments will be made at the end of each year). If the annual interest rate is 14%, how much will your annual payments be? (136,480 12. You are told that if you invest $11,000 per year for 23 years (all payments made at the end of each year) you will have accumulated $366,000 at the end of the period. What annual rate of return is the investment offering? 13. You are offered an annuity that will pay $17,000 per year for 7 years (the first payment will be made today) feel that the appropriate discount rate is 11%, what is the annuity worth to you today? 14. If you deposit $15,000 per year for 9 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 8%, what will your account be worth at the end of 9 years? 15. You plan to accumulate $450,000 over a period of 12 years by making equal annual deposits in an account that pays an annual interest rate of 9% (assume all payments will occur at the beginning of each year). What amount must you deposit each year to reach your goal? are told that if you invest $11,100 per year for 19 years (all payments made at the beginning of each year) we accumulated $375,000 at the end of the period. What annual rate of return is the investment offering?

11-16 I need help quick

Answer 1

Part 11: Amount of annual payments= $56,598.88 as follows:

C6 f =PMT(C1,C2,C3,C4,C5) B 14.00% 25 $(389,000.00) 1 Interest rate 2 Number of payments 3 Present Value 4 Future value 5 Timing of payments 6 Amount of yearly payments 7 Rate Nper PV Fv Type Pmt | $56,598.88

Part 12: Annual Rate of return=3.208554% as follows:

C6 fc =RATE(C1,C2,C3,C4,C5) в Nper 23 Pmt $ (11,000) PV А 1 Number of instalments 2 Yearly payments 3 Present Value 4 Future value 5 Timing of coupon payment 6 Annual rate of return 7 $ 366,000 Fv Type RATE 3.208554%

Part 13: The annuity is wort $88,919.14 today, as follows:

C6 =PV(C1,C2,C3,C4,C5)*-1 B 11% $17,000 А 1 Interest rate Rate 2 Number of payments Nper 3 Amount of periodical payments Pmt 4. Future value Fv 5 Timing of payments Type 6 Present Value Pv 7 $88,919.14

Part 14: The account will be worth $202,298.44 after 9 years, as follows:

Cubour fo=FV(C1,C2,C3,C4,C5)*-1 B 8% C6 А 1 Interest rate 2 Number of payments 3 Amount of yearly payments 4. Present Value 5 Timing of payments 6 Future value 7 Rate Nper Pmt $15,000 $0.00 Py Type FV $202,298.44

Part 15: Yearly deposit needed= $20,497.98 as follows:

f =PMT(C1,C2,C3,C4,C5)*-1 В Rate 9.00% Nper 12 PV 1 Interest rate 2 Number of payments 3 Present Value 4 Future value 5 Timing of payments 6 Amount of yearly payments $ 450,000.00 Fv Type Pmt $20,497.98

Part 16: Annual rate of return= 5.477277% as follows:

C6 fc =RATE(C1,C2,C3,C4,C5) B 19 (11,100) $ А 1 Number of instalments 2 Yearly payments 3 Present Value 4 Future value 5 Timing of coupon payment 6 Annual rate of return 7 Nper Pmt PV Fv Type RATE S 375,000 5.477227%