How much more money is required to fund an ordinary perpetuity than a 20-year ordinary annuity if both pay $5900 quarterly and money can earn 8% compounded quarterly? (Do not round intermediate calculations and round your final answer to 2 decimal places.) |
$ more money is required |
Present Value of Perpetuity = Annual Payment / r
r = 0.08 / 4 = 0.02
= 5900 / 0.02
= 295000
Present Value Annuity =
r = 0.02
n = 20years * 4 = 80 Quarters
=
= 234,492.63
More money Required = Present Value of Perpetuity - Present Value Annuity
= 295,000 - 234,492.63
= 60507.37
How much more money is required to fund an ordinary perpetuity than a 20-year ordinary annuity...
How much more money is required to fund an ordinary perpetuity than a 35-year ordinary annuity, if the funds can earn 6% compounded quarterly, and both pay $800 monthly? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ more money is needed to fund the perpetuity
How much more money is required to fund an ordinary perpetuity than a 15-year ordinary annuity, if the funds can earn 5% compounded quarterly, and both pay $600 monthly? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ more money is needed to fund the perpetuity PLEASE IM EXPECTING A CORRECT ANSWER FROM YOU
7. How much interest is included in the future value of an ordinary simple annuity of $1,350 paid every six months at 6% compounded semi-annually if the term of the annuity is 2 years? The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 8. Glenn has made contributions of $250 at the end of every three months into an RRSP for ten years. Interest for...
A deferred annuity consists of an ordinary annuity paying $2100 semiannually for a 12-year term after a 6-year period of deferral. Calculate the deferred annuity’s present value using a discount rate of 4.1% compounded quarterly. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $
A deferred annuity consists of an ordinary annuity paying $2700 semiannually for a 10-year term after a 5-year period of deferral. Calculate the deferred annuity’s present value using a discount rate of 4.7% compounded quarterly. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $
How much will Tamara have in 10 years from now if she deposits the $9,868 that her grandfather gave her at 2.1 % interest rate, compounded annually? Round your answer to 2 decimal places and do not enter any symbols such as S, % or commas. Match the correct terms for the given definitions below. A sum received today is worth more than that same sum received some time in the future. A. Compound interest B. Simple interest C. Time...
Find the future values of the following ordinary annuities. FV of $800 each 6 months for 6 years at a nominal rate of 16%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ FV of $400 each 3 months for 6 years at a nominal rate of 16%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ The annuities described in parts a and b have the same...
What minimum amount will have to be dedicated today to a fund earning 3.4% compounded quarterly, if the first quarterly payment of $7000 in perpetuity is to occur five years from now? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Amount to be dedicated is $
What minimum amount will have to be dedicated today to a fund earning 3.4% compounded quarterly, if the first quarterly payment of $7000 in perpetuity is to occur five years from now? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Amount to be dedicated is $
1- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.) $275 monthly at 5.6% to accumulate $25,000. _________yr 2- Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.) $18,000 at 3% for 15 years if...