Question

In: Finance

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.

Solutions

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.


Related Solutions

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?...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT