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In: Finance
An ordinary annuity selling at $14,755.18 today promises to make equal payments at the end of...
An ordinary annuity selling at $14,755.18 today promises to make equal payments at the end of each year for the next ten years (N). If the annuity’s appropriate interest rate (I) remains at 9.50% during this time, the annual annuity payment (PMT) will be $_____.
You just won the lottery. Congratulations! The jackpot is $10,000,000, paid in ten equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won $ _____assuming annual interest rate of 9.50%.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You bought an annuity selling at $14,112.74 today that promisesto make equal payments at the...
You bought an annuity selling at $14,112.74 today that promises
to make equal payments at the beginning of each year for the next
twelve years (N). If the annuity’s appropriate interest rate (I)
remains at 11.00% during this time, then the value of the annual
annuity payment (PMT) is__________..You just won the lottery. Congratulations! The jackpot is
$35,000,000, paid in twelve equal annual payments. The first
payment on the lottery jackpot will be made today. In present value
terms, you...
Annuity payments are assumed to come at the end of each payment period (termed an ordinary...
Annuity payments are assumed to come at the end of each payment
period (termed an ordinary annuity). However, an exception occurs
when the annuity payments come at the beginning of each period
(termed an annuity due).
What is the future value of a 13-year annuity of $3,500 per
period where payments come at the beginning of each period? The
interest rate is 10 percent. Use Appendix C for an approximate
answer, but calculate your final answer using the formula and...
Annuity payments are assumed to come at the end of each payment period (termed an ordinary...
Annuity payments are assumed to come at the end of each payment
period (termed an ordinary annuity). However, an exception occurs
when the annuity payments come at the beginning of each period
(termed an annuity due).
What is the future value of a 10-year annuity of $2,600 per
period where payments come at the beginning of each period? The
interest rate is 7 percent. Use Appendix C for an approximate
answer, but calculate your final answer using the formula and...
A.) If you make quarterly payments of$331.00 into an ordinary annuity earning an annual interest rate...
A.) If you make quarterly payments of$331.00 into an ordinary
annuity earning an annual interest rate of 5.47%, how much will be
in the account after 4 years?
B.) If you make monthly payments of $464.00 into an ordinary
annuity earning an annual interest rate of 7.4% compounded monthly,
how much will you have in the account after 5 years? After 9
years?
C.) In 3 years Harry and Sally would like to have $26,000.00 for
a down payment on...
a) Monty borrowed $10,500 and promises to make three equal payments, one in 6 months, one...
a) Monty borrowed $10,500 and promises to make three equal
payments, one in 6 months, one in 12 months, and one in 18 months.
If money is worth 10% compounded quarterly, what is the size of the
equal payments? Use 18 months as the focal date.
I figured out the answer for part A. being 3676.389 I am unable
to figure out question b.
b) If Monty misses the first payment, what will be the
amount of the revised equal...
The present value of an annuity due is equal to the present value of an ordinary...
The present value of an annuity due is equal to the present
value of an ordinary annuity times (1 + i).
Select one:
True
False
What is the PV of an ordinary annuity with 10 payments of $67,450 if the appropriate...
What is the PV of an ordinary annuity with 10 payments of
$67,450 if the appropriate interest rate is 71 percent?
7.1
percent
what is the pv of an ordinary annuity with 10 payments of 4100 if the appropriate...
what is the pv of an ordinary annuity with 10 payments of 4100
if the appropriate interest rate is 5%?
Your aunt is about to retire, and she wants to sell some of her
stock and buy an annuity that will provide her with income of
$53000 per year for 30 years, beginning a year from today. The
going rate on such annuities is 7%. How much would it cost her to
buy such an annuity today?
What's the present...
Recall that an annuity is any sequence of equal periodic payments. If payments are made at...
Recall that an annuity is any sequence of equal periodic
payments. If payments are made at the end of each time interval,
then the annuity is called an ordinary annuity. We consider only
ordinary annuities in this summer. The amount, or future value, of
an annuity is the sum of all payments plus all interest earned.
Suppose you decide to deposit $600 every 6 months into an account
that pays 18% compounded semiannually. If you make eight deposits,
one at...
Find the amount of an ordinary annuity for 6 years of semiannually payments of $1,400 that...
Find the amount of an ordinary annuity for 6 years of
semiannually payments of $1,400 that earn interest at 8%/year
compounded semi-annually.
a. $26,567.98
b. $2,241.45
c. $9,286.17
d. $21,036.13
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