Erik receives an eight year annuity immediate with monthly payments. The first payment is $300 and...
Erik receives an eight year annuity immediate with monthly
payments. The first payment is $300 and the payments increase by $6
each month. The payments are deposited in an account earning
interest at a nominal rate of 6% convertible monthly. What is the
balance in the account at the end of eight years?
Answer is 69,042.81
Do it without excel!!!
Homework Answers
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Erik receives an eight year annuity immediate with monthly
payments. The first payment is $300 and...
Jean receives annuity payments at the end of every six months. If she deposits these payments...
Jean receives annuity payments at the end of every six months. If she deposits these payments in an account earning interest at 9% compounded monthly, what is the equivalent semi-annually compounded rate of interest? What sum of money must be deposited at the end of every 3 months into an account paying 6% compounded monthly to accumulate to $25,000 in 10 years? Irina deposited $150 in a savings account at the end of each month for 60 months. If the...
An annuity immediate pays $500 per month for the first three years.
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?
An annuity immediate pays $500 per month for the first three years. After that the annuity...
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
(1) Find the present value (one period before the first payment) of an annuity- immediate that...
(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?
1. Gilda receives an annuity-due with a payment each month. The annuity has its first payment...
1. Gilda receives an annuity-due with a payment each month. The annuity has its first payment on her 12th birthday and the last payment is on her 16th birthday T'he amount of the payment is $100 times her age with no credit being given for fractions of a year. All the payments are deposited into an account earning interest at an annual effectiveinterst rate of5.82%. Find the accumulated value on her 18th birthday ,
For 50,000, Kelly purchases an annuity-immediate that pays 400 monthly for the next 20 years. Calculate...
For 50,000, Kelly purchases an annuity-immediate that pays 400 monthly for the next 20 years. Calculate the annual nominal interest rate convertible monthly earned by Kelly's investment. (Don't use Excel)
Problem 2.10 A 10-year annuity-immediate pays 100 quarterly for the first five years. Starting year 6,...
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
A fifteen-year adjustable-rate mortgage of $117,134.80 is being repaid with monthly payments of $988.45 based upon...
A fifteen-year adjustable-rate mortgage of $117,134.80 is being repaid with monthly payments of $988.45 based upon a nominal interest rate of 6% convertible monthly. Immediately after the 60th payment, the interest rate is increased to a nominal interest rate of 7.5% convertible monthly. The monthly payments remain at $988.45, and there will be an additional balloon payment at the end of the fifteen years to pay the outstanding loan balance. (a) Calculate the loan balance immediately after the 84th payment....
A 7-year annuity has annual payments of $2,500. The first payment is at the end of...
A 7-year annuity has annual payments of $2,500. The first payment is at the end of year 1. If interest is 5 percent per annum (effective annual rate) for 2 years followed by 6 percent per annum (effective annual rate) for 5 years, what is the future value of this annuity at the end of 7 years? Please don't answer using excel.
Two annuities have equal present values. The first is an annuity-immediate with quarterly payments of $X...
Two annuities have equal present values. The first is an annuity-immediate with quarterly payments of $X for 10 years. The second is an increasing annuity-immediate with 10 annual payments, where the first payment is $500 and subsequent payments increase by 10% per year. Find X if the annual effective interest rate is 5%. (Answer: 188.28)
Jean receives annuity payments at the end of every six months. If she deposits these payments in an account earning interest at 9% compounded monthly, what is the equivalent semi-annually compounded rate of interest? What sum of money must be deposited at the end of every 3 months into an account paying 6% compounded monthly to accumulate to $25,000 in 10 years? Irina deposited $150 in a savings account at the end of each month for 60 months. If the...
(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?
1. Gilda receives an annuity-due with a payment each month. The annuity has its first payment on her 12th birthday and the last payment is on her 16th birthday T'he amount of the payment is $100 times her age with no credit being given for fractions of a year. All the payments are deposited into an account earning interest at an annual effectiveinterst rate of5.82%. Find the accumulated value on her 18th birthday ,
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
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