Value of annuity at begining of year 5is present value of annuity at 11.30% interest rate..Value of annuity after 5 year is calculated in excel and screen shot provided below:
Value of annuity after 5 year is $5.09.
Now, this value is considered as future value for annuity discounting at 7.20%. Present value of 9 year annuity is calculated in excel and screen shot provided below:
Present value of annuity is $9.50.
W6: Problem 8 Previous Problem ListNext (1 point) a) Find the present value of an annuity-immediate...
(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?
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. 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
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?
Problem 2.10 A 10-year annuity-immediate pays 100 quarterly for the first five years. Starting year 6, the annuity immediate pays 300 quarterly for the remaining five years. There is a nominal annual interest of 8% convertible quarterly. Find the present value of this annuity
(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 =
8. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the areatest present value (pV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $1,000 at the end of each year O An annuity that pays $1,000 at the beginning of each...
7. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six moĆths O An annuity that pays $1,000 at the...
HW 15: Problem 14 Previous Problem ListNext (1 point) Find a quadratic equation for a function y-f(x) which crosses the x-axis at x = 5 and x = 6, and which oosses the y-axis at y =-60. f(x)- E help (formulas Preview My Answers Submit Answers You have attempted this problem 0 times. You have 6 attempts remaining. Emal instructor