Homework Answers
![Answer to Q#1 (First question in the list Option-(d): An annuity that pays $1,000 at the beginning of each year Assuming that the positive nominal annual interest rate be 10%. Option-(a n-(b) Option-( ion-(d 5% 5% 1096 [For Option-(a) & (b): Rate-10%/2-5%) Periodic interest rate, RATE Number of period of annuity, NPER Annuity cash flow, PMT Lumpsum receipt at the end, FV Annuity type, TYPE Present Value of the annuities 10% 10 $1,000 $0 0 20 20 10 [For Option-(a) & (b): Rate 10 years x 2 10] $1,000 $0 $0 $0 10 if annuity occurs at the end of of each year; 1 if annuity occurs at the beginning of each year $6,542.66 $6,231.11 $6,144.57 $6,759.02 [Ref: NOTE] NOTE: For Option-(a): Present Value of the annuities is calculated using EXCEL FUNCTION PV(rate,nper,pmt,fv,type) where rate:5%; n per-20; pmt=-500; fys0; type-o Here, value for pmt is negative as it denotes cash inflows; type 0 because interest compounds at the end of each period only](http://img.homeworklib.com/questions/495c6590-4281-11ea-8b2c-210efc11261e.png?x-oss-process=image/resize,w_560)
Add Answer to:
9. Present value of annuities and annuity payments Aa Aa The present value of an annuity...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity...
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 mońths O An annuity that pays $1,000 at the...
7. Present value of annuities and annuity payments Aa Aa The present value of an annuity...
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...
An ordinary annuity selling at $9,697.45 today promises to make equal payments at the end of...
An ordinary annuity selling at $9,697.45 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity's appropriate interest rate (1) remains at 8.00% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $85,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won assuming an...
7. Present value of annuities and annuity payments The present value of an annuity is the...
7. 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 greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the end of each year...
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has...
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 O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months...
10. Implied interest rate and period Aa Aa Consider the case of the following annuities and...
10. Implied interest rate and period Aa Aa Consider the case of the following annuities and the need to compute either their expected rate of return or duration. David needed money for some unexpected expenses, so he borrowed $5,464.40 from a friend and agreed to repay the loan in eight equal installments of $1,100 at the end of each year. The agreement is offering an implied interest rate of David's friend, Keanu, has hired a financial planner for advice on...
The present value of an annuity is the sum of the discounted value of all future...
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. bevinning of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annuity that pays...
8. Calculate annuity cash flows Aa Aa Your goal is to have $20,000 in your bank...
8. Calculate annuity cash flows Aa Aa Your goal is to have $20,000 in your bank account by the end of four years. If the interest rate remains constant at 6% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? $3,657.48 O $3,200.30 O $4,571.85 O $5,486.22 If your deposits were made at the beginning of each year rather than an...
8. Present value of annuities and annuity payments The present value of an annuity is the...
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...
10. Future value of annuities Aa Aa When equal payments are made at fixed intervals for...
10. Future value of annuities Aa Aa When equal payments are made at fixed intervals for a specified number of periods, you wll treat them as an annuity You are planning to put $1,250 in the bank at the end of each year for the next eight years in hopes that you will have enough money for a new boat. If you are investing at an annual interest rate of 9%, you'll have accumulated at the end of eight years....
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 mońths O An annuity that pays $1,000 at the...
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...
An ordinary annuity selling at $9,697.45 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity's appropriate interest rate (1) remains at 8.00% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $85,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won assuming an...
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 O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months...
10. Implied interest rate and period Aa Aa Consider the case of the following annuities and the need to compute either their expected rate of return or duration. David needed money for some unexpected expenses, so he borrowed $5,464.40 from a friend and agreed to repay the loan in eight equal installments of $1,100 at the end of each year. The agreement is offering an implied interest rate of David's friend, Keanu, has hired a financial planner for advice on...
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. bevinning of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annuity that pays...
8. Calculate annuity cash flows Aa Aa Your goal is to have $20,000 in your bank account by the end of four years. If the interest rate remains constant at 6% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? $3,657.48 O $3,200.30 O $4,571.85 O $5,486.22 If your deposits were made at the beginning of each year rather than an...
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...
10. Future value of annuities Aa Aa When equal payments are made at fixed intervals for a specified number of periods, you wll treat them as an annuity You are planning to put $1,250 in the bank at the end of each year for the next eight years in hopes that you will have enough money for a new boat. If you are investing at an annual interest rate of 9%, you'll have accumulated at the end of eight years....
Most questions answered within 3 hours.
-
If you’re standing at the bottom of a hill and asked to evaluate
it while being...
asked 33 minutes ago -
1. Which region has taken the lead in the world of
e-waste handling?
a) European Union...
asked 27 minutes ago -
A 8.15- g bullet from a 9-mm pistol has a velocity of 366.0 m/s.
It strikes...
asked 1 hour ago -
The outstanding bonds of Alpha Extracts have a yield to maturity
of 7.4 percent and a...
asked 1 hour ago -
The Problem: The Case of the Harmonizing Vacations
Your CEO is exploring partnering with a European...
asked 3 hours ago -
A chemical equation is balanced by adding coefficients in front
of some formulas so that the...
asked 3 hours ago -
From the literature (reference your sources): What are the
lattice parameters of calcite and aragonite? Why...
asked 4 hours ago -
Your system is rejecting the question am asking which is
preceded by a case study. It...
asked 4 hours ago -
3. On January 2, 2000, Larry creates a trust with himself as
trustee. Larry as trustee...
asked 4 hours ago -
A member of the volleyball team spikes the ball. During this
process, she changes the velocity...
asked 4 hours ago -
Are adult gamers less likely to use a gaming console (Xbox,
PlayStation, Wii, etc...) than teen...
asked 5 hours ago -
The University of
Texas recently reported that 43% of college students aged 18-24
would spend their...
asked 5 hours ago