Homework Answers
- To solve this we need to understand the meaning of ordinary annuity which means there is a series of equal receipts or payments spread across evenly over a period of time.
- Present Value (PV) is a functionality which helps us to calculate the present value of a constant payment which happens over equal time intervals which in our case is annually
- The equation is as below:
Where a is the constant cash flows
r being the interest rate being compounded annually
n being the number of years
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Question 2: Derive an equation to calculate the number of years in an ordinary annuity that...
Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your...
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...
6% compounded monthly RM 8,000 (12 marks) Question 2 Calculate the interest for an ordinary annuity with n payments...
6% compounded monthly RM 8,000 (12 marks) Question 2 Calculate the interest for an ordinary annuity with n payments of R ringgit at roo. RM 1,500 12% compounded annually RM 300 8% compounded quarterly RM 600 15% compounded monthly | 20 RM 550 7.5% compounded semi-annually 14 (8 ma LIMKOKOWING UNVERSITY OF CREATIME TECHNOLOGY FACULTY OF BUSINESS MANAGEMENT&GLOBAL CATION Pa
6% compounded monthly RM 8,000 (12 marks) Question 2 Calculate the interest for an ordinary annuity with n payments of...
(Calculating the future value of an ordinary annuity) Calculate the future value of each of the...
(Calculating the future value of an ordinary annuity) Calculate the future value of each of the following streams of payments. a. £430 a year for 12 years compounded annually at 6 percent. b. €56 a year for 8 years compounded annually at 8 percent. c. $75 a year for 5 years compounded annually at 3 percent. d. £120 a year for 3 years compounded annually at 10 percent.
Waiting period with an ordinary annuity. Fill in the missing number of payments or years (waiting...
Waiting period with an ordinary annuity. Fill in the missing number of payments or years (waiting period) in the following table for an ordinary annuity stream i Data Table (Click on the following icone in order to copy its contents into a spreadsheet.) Annual Interest Rate Future Value Annuity Present Value Number of Payments or Years ? ? 6% 8% 10% 4% 0.00 $5,794.62 0.00 $100,000.00 $250.00 $400.00 $636.48 $80.80 $2,867.48 0.00 $6,000.00 0.00
e. What is an annuity due? How does this differ from an ordinary annuity? f. What...
e. What is an annuity due? How does this differ from an ordinary annuity? f. What is the present value of an ordinary annuity of $2 comma 6002,600 per year for 2525 years discounted back to the present at 1111 percent? What would be the present value if it were an annuity due? g. What is the future value of an ordinary annuity of $2 comma 6002,600 per year for 2525 years compounded at 1111 percent? What would be the...
1. Calculate the accumulated value of an ordinary annuity of $4,200 a year for 6 years...
1. Calculate the accumulated value of an ordinary annuity of $4,200 a year for 6 years if the money is worth 71 2 %. 2. Find the future value of the cash flow of $600 a month for 5 years at 9% interest compounded monthly. 3. If Gabe makes a $450 deposit into his savings fund at the end of each quarter for 6 years, how much will he be able to collect at the end of the sixth year...
6-1. (Calculating the future value of an ordinary annuity) Calculate the future value of each of...
6-1. (Calculating the future value of an ordinary annuity) Calculate the future value of each of the following streams of payments. a. £430 a year for 12 years compounded annually at 6 percent. b. €56 a year for 8 years compounded annually at 8 percent. e. $75 a year for 5 years compounded annually at 3 percent. d. £120 a year for 3 years compounded annually at 10 percent.
Question (2): (1x5-5 Marks) 1- Calculate the future value of $12,000 invested today for 3 years...
Question (2): (1x5-5 Marks) 1- Calculate the future value of $12,000 invested today for 3 years if your investment pays 8% compounded semiannually (1.0 Mark) 2- Calculate the present value of $9,000 received 6 years from today if your investment pays 12% compounded quarterly. (1.0 Mark) (3.0 Marks) 3- Calculate the present value of the following annuity stream: a) Ordinary annuity of $5,000 received each year for 5 years if your investment pays 5% (Imark) compounded annually. b) Ordinary annuity...
Find the present value of an ordinary annuity which has payments of $1300 per year for...
Find the present value of an ordinary annuity which has payments of $1300 per year for 14 years at 8% compounded annually. The present value is $ . (Round to the nearest cent.)
Find the present value of an ordinary annuity which has payments of $2000 per year for...
Find the present value of an ordinary annuity which has payments of $2000 per year for 16 years at 5% compounded annually The present value is $ (Round to the nearest cent.)
6% compounded monthly RM 8,000 (12 marks) Question 2 Calculate the interest for an ordinary annuity with n payments of R ringgit at roo. RM 1,500 12% compounded annually RM 300 8% compounded quarterly RM 600 15% compounded monthly | 20 RM 550 7.5% compounded semi-annually 14 (8 ma LIMKOKOWING UNVERSITY OF CREATIME TECHNOLOGY FACULTY OF BUSINESS MANAGEMENT&GLOBAL CATION Pa
6% compounded monthly RM 8,000 (12 marks) Question 2 Calculate the interest for an ordinary annuity with n payments of...
(Calculating the future value of an ordinary annuity) Calculate the future value of each of the following streams of payments. a. £430 a year for 12 years compounded annually at 6 percent. b. €56 a year for 8 years compounded annually at 8 percent. c. $75 a year for 5 years compounded annually at 3 percent. d. £120 a year for 3 years compounded annually at 10 percent.
Waiting period with an ordinary annuity. Fill in the missing number of payments or years (waiting period) in the following table for an ordinary annuity stream i Data Table (Click on the following icone in order to copy its contents into a spreadsheet.) Annual Interest Rate Future Value Annuity Present Value Number of Payments or Years ? ? 6% 8% 10% 4% 0.00 $5,794.62 0.00 $100,000.00 $250.00 $400.00 $636.48 $80.80 $2,867.48 0.00 $6,000.00 0.00
6-1. (Calculating the future value of an ordinary annuity) Calculate the future value of each of the following streams of payments. a. £430 a year for 12 years compounded annually at 6 percent. b. €56 a year for 8 years compounded annually at 8 percent. e. $75 a year for 5 years compounded annually at 3 percent. d. £120 a year for 3 years compounded annually at 10 percent.
Question (2): (1x5-5 Marks) 1- Calculate the future value of $12,000 invested today for 3 years if your investment pays 8% compounded semiannually (1.0 Mark) 2- Calculate the present value of $9,000 received 6 years from today if your investment pays 12% compounded quarterly. (1.0 Mark) (3.0 Marks) 3- Calculate the present value of the following annuity stream: a) Ordinary annuity of $5,000 received each year for 5 years if your investment pays 5% (Imark) compounded annually. b) Ordinary annuity...
Find the present value of an ordinary annuity which has payments of $1300 per year for 14 years at 8% compounded annually. The present value is $ . (Round to the nearest cent.)
Find the present value of an ordinary annuity which has payments of $2000 per year for 16 years at 5% compounded annually The present value is $ (Round to the nearest cent.)
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