What is the present value of an annuity that pays $6,500 per year for 9 years...

What is the present value of an annuity that pays $6,500 per year for 9 years with a 11% interest rate with the first payment TODAY.

Expert Solution

Solution :

The present value of an annuity = $ 39,949.80

= $ 39,950 ( when rounded off to the nearest whole number )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 3 months ago

what is the present value of an annuity that pays $680 per year for 13 years...

what is the present value of an annuity that pays $680 per year for 13 years given an interest rate of 4.35% p.a.?

What is the present value of an annuity that pays $8,500 per year for 13 years...

What is the present value of an annuity that pays $8,500 per year for 13 years with a 8% interest rate with the first payment TODAY. Please show how to calculate in excel!

What is the present value of an ordinary annuity that pays $550 per year for 14...

What is the present value of an ordinary annuity that pays $550 per year for 14 years at 3%? Assume annual compounding $4,461 $6,213 $364 $7,700 $832

) What is the present value of an ordinary 12-year annuity that pays $1,000 per year...

) What is the present value of an ordinary 12-year annuity that pays $1,000 per year when the interest rate is 7%? a. $7,942.70 b. $8,942.71 c. $9,942.72 d. $10,942.56 e. None of the above.

Calculate the present value of a growing annuity at a discount rate of 9% per year....

Calculate the present value of a growing annuity at a discount rate of 9% per year. The growth rate (constant) of the annuity is 4% per year. the life of the annuity is 10 years. the first annuity payment is $2000 occurring at the end of year one. Calculate using Excel please.

An ordinary annuity that pays $300 per year has a present value of $21,000. Assuming a...

An ordinary annuity that pays $300 per year has a present value of $21,000. Assuming a cost of capital of 6%, how much would this value change if it were an annuity due? Round your answer to 2 decimal places. You need a new car and are considering leasing versus buying. Lease Option: You could lease the car for 6 years starting today for $6,000 per year with the first payment being due at the end of year 1. Purchase...

If the present value annuity factor at 8% annually for 9 years is 6.247, what is...

If the present value annuity factor at 8% annually for 9 years is 6.247, what is the equivalent future value annuity factor? A bond that matures in 10 years has a par value of $1,000 and a 4.5% annual coupon rate. The coupon is paid in two semiannual payments. Market rates on bonds of similar risk and maturity are now 7%. The part of the bond's present value that is based on the stream of interest payments is: If you...

What is the future value of an annuity that pays $4,200 per year for the next...

What is the future value of an annuity that pays $4,200 per year for the next 12 years? The interest rate is 8.2%. Please show work.

Find the Future Value of an ordinary annuity that pays $600 per year for 5 years...

Find the Future Value of an ordinary annuity that pays $600 per year for 5 years at 4%. Compounding occurs once a year. $2,187.31 $3,249.79 $729.99 $2,671.10 $2,586.08

An annuity pays $10 per month for 50 years. What is the future value (FV) of...

An annuity pays $10 per month for 50 years. What is the future value (FV) of this annuity at the end of that 50 years given that the interest rate is 5%? Since your first birthday, your grandparents have been depositing $1000 into a savings account on every one of your birthdays. The account pays 4% interest annually. Immediately after your grandparents make the deposit on your 18th birthday, what will be the amount of money in your savings account?...

Question