PV is present value 4. Calculate the PV of an ordinary annuity if a. Periodic cash...
= 4.1114 6. Calculate the FV of an ordinary annuity if a. Periodic cash flow = $6,000 per year b. Time frame = 10 years c. Interest rate = 9% per year
FV of an ordinary annuity = 8.11519 8. Calculate the PV of a perpetuity if a. Periodic cash flow $7,000 b. Interest rate = 11%
Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value of the Annuity $3,000 every year 20 4 annually $ Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value...
4. (a) What is the future value of a 3-year ordinary annuity (recall that ordinary annuities have end of year cash flows) of $200 if the appropriate interest rate is 12%? (1 point) (b) What is the present value of the annuity? (1 point) (c) What would the future and present values be if the annuity were an annuity due (beginning of year cash flows)? Hint, set your calculator to BGN, there is a video in M2 that shows you...
Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $2900 1 month 5 years 9 % semi-annually
What is the present value of a 17 year ordinary annuity with an annual payment of $216,000 if the opportunity cost rate is 15.2%? An ordinary annuity pays $16,375 per year for 9 years. If you pay $100,000 for this annuity now, what rate of return (interest rate) will you earn? A 22 year ordinary annuity has a present value of $28,520. If the interest rate on this annuity is 12%, what is the amount of each payment?...
Find the present value of the following ordinary annuity. Term Interest Rate Periodic Payment $2900 Payment Interval 6 months 6 months 4 years 4% Conversion Period quarterly Period 4 years 4%
14. Calculate the present value of an ordinary annuity and an annuity due of a 5 year investment made by contributing $250 on a quarterly basis at an annual rate of 7.75%: Ordinary Annuity Annuity Due A.$4,112.62 $4,192.30 B. $4,368.18 $4,072.89 C. $1,004.79 $1,082.66 D. $8,564.04 $8,264.45
Time Value of Money In solving these problems please use Excel formulas of the time value of money valuation including : Present Value / PV, Future Value / FV, interest Rate / Rate, Number of periods / NPER First National Bank TIME VALUE OF MONEY ANALYSIS You have applied for a job with a local bank. As part of its evaluation process, you must take an examination on time value of money analysis covering the following questions: 1. Draw time...
Determine the size of the periodic payment of the following ordinary general annuity. Present Value Payment Period Term of Annuity Interest Rate Conversion Period monthly $14,700 3 months 3 years, 6 months 3.4% The periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places