ZuoTi.Pro
Question

What is the value in the year 2050 of a $200 a year annuity with the...

What is the value in the year 2050 of a $200 a year annuity with the first payment in 2025 and the final payment in 2040? The interest rate is 3% p.a.

a.

$5,417.83
b.

$4,031.38
c.

$2,512.22
d.

$4,152.32
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The correct answer is option a

The value can be calculated using the future value of annuity equation

Value in year 2040 = $4,031.38

Value in the year 2050 = $4,031.38 x ( 1+0.03)10

Value in the year 2050 = $ 5417.83

0 0
Add a comment
Know the answer?
Add Answer to:
What is the value in the year 2050 of a $200 a year annuity with the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • What is the value in 2030 of a $700 a year annuity with the first payment...

    What is the value in 2030 of a $700 a year annuity with the first payment occurring in 2017 and the final payment in 2025? The interest rate is 6% p.a. a) $13,217.5 b) $12,347.21 c) $10,764.58 d) $11,410.46

  • what is the future value of a 3 - year, $200 ordinary annuity if the annual...

    what is the future value of a 3 - year, $200 ordinary annuity if the annual interest rate is 4%? please draw the time line and list the inputs of your financial calculator. F. (1) What is the future value of a 3-year, $200 ordinary annuity if the annual interest rate is 4%? Please draw the time line and list the inputs of your financial calculator.(3 points)

  • please show work!! What is the future value of an annuity of $150 per year (first...

    please show work!! What is the future value of an annuity of $150 per year (first cash flow occurs one year from today) for 61 years if the interest rate is 4 % p.a.? Round your answer to two decimal places and record without a dollar sign and without commas. What is the present value of an annuity of $500 per year (first cash flow occurs one year from today) for 26 years if the interest rate is 11 %...

  • a. What is the present value of a 3-year annuity of $190 if the discount rate...

    a. What is the present value of a 3-year annuity of $190 if the discount rate is 6%? b. What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

  • What is the future value of an annuity of $150 per year (first cash flow occurs...

    What is the future value of an annuity of $150 per year (first cash flow occurs one year from today) for 56 years if the interest rate is 4 % p.a.?

  • $100 S $315.25 FVAN PMT 0.050 Future Value of Annuity 500 400 300 200 100 0...

    $100 S $315.25 FVAN PMT 0.050 Future Value of Annuity 500 400 300 200 100 0 1 2 Period Int 5 10 5 PMT = 100 200 400 N 3 1. What is the approximate future value of an annuity after 10 years with payments each period of $200, and an interest rate of 6%? a. $1,257.59 b. $2,515.58 c. $2,636.16 d. $3,187.48 -Select- 2. Set the sliders so that the interest rate is 5%, the payment is $100, and...

  • (USLUR 17 .points) What is the present value of an annuity of $500 per year (first...

    (USLUR 17 .points) What is the present value of an annuity of $500 per year (first cash flow occurs one year from today) for 42 years if the interest rate is 14 % p.a.?! (Round your answer to two decimal places and record without a dollar sign and without a comma. Your Answer: Question 18 (3.3 points) What is the future value exactly 19 years from today of a deposit of $3,232 made today into an account that pays interest...

  • What is the future value of an 8 year ordinary annuity with an annual payment of...

    What is the future value of an 8 year ordinary annuity with an annual payment of $600 if the interest rate is 13.5%?          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...

  • What is the present value of a 4-annual payment, $444 per year annuity at an interest...

    What is the present value of a 4-annual payment, $444 per year annuity at an interest rate of 4% if the first payment is received at the beginning of year 4? The answer is 1490 but how. no excel with calculator please.

  • 1.Future Value: Ordinary Annuity versus Annuity Due What is the future value of a 3%, 5-year...

    1.Future Value: Ordinary Annuity versus Annuity Due What is the future value of a 3%, 5-year ordinary annuity that pays $250 each year? Round your answer to the nearest cent. $   If this were an annuity due, what would its future value be? Round your answer to the nearest cent. $   2. Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT