A 50-year annuity with an annual interest rate of 8%. In the first 20 years, $1000...

A 50-year annuity with an annual interest rate of 8%. In the first 20 years, $1000 was deposited at the beginning of each year, and in the next 30 years, $1400 was deposited at the beginning of each year. Calculate the value of this annuity at the end of the 40th year.

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS ASKED BY YOU, SOLVED WITH FORMULAS

jeff jeffy answered 2 years ago

9. A 5-year $150 ordinary annuity has an annual interest rate of 8%. What is its...

9. A 5-year $150 ordinary annuity has an annual interest rate of 8%. What is its present value? What would the present value be if it was a 10-year annuity? What would the present value be if this was a perpetuity?

Future value of an annuity Amount of annuity Interest rate Deposit period (years) $1,000 8% 10...

Future value of an annuity Amount of annuity Interest rate Deposit period (years) $1,000 8% 10 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity long dash—ordinary or annuity due long dash—is preferable as an investment? Explain why. a. (1) The future value of the ordinary annuity is $____. (Round to the...

Consider a 20-year mortgage for $282845 at an annual interest rate of 4.1%. After 6 years,...

Consider a 20-year mortgage for $282845 at an annual interest rate of 4.1%. After 6 years, the mortgage is refinanced to an annual interest rate of 2.5%. What are the monthly payments after refinancing?

A 5-year, $100 ordinary annuity has an annual interest rate of 4%.

A 5-year, $100 ordinary annuity has an annual interest rate of 4%. 1. What is its present value? 2. What would the present value be if it was a 10-year annuity? 3. What would the present value be if it was a 25-year annuity? 4. What would the present value be if this was a perpetuity?

a 20-years annuity-immediate has annual payments . The first payment is 100 and subsequent payments are...

a 20-years annuity-immediate has annual payments . The first payment is 100 and subsequent payments are increased by 100 until they reach 1000. The remaining payment stay at 1000. the annual effective intersst rate 7.5% . What is the coast of this annuity?

1. A 20 year annuity has annual payments which increase by $500 each year. The first...

1. A 20 year annuity has annual payments which increase by $500 each year. The first payment is $10,500 on Jan. 1, 2018. The annual effective interest is 1%. What is the value of the annuity on Oct. 1, 2017? The answer should be $274,250.53 And I don't have more information about this...this is how the problem looks like. 2. A loan is repaid with level installments payable at the end of each half-year for 3(1/2) years, at a nominal...

What is the present value of a 1000 USD annuity for 10 years, with the first...

What is the present value of a 1000 USD annuity for 10 years, with the first payment occurring at the end of year 10 (that is, ten 1000 USD payments occurring at the end of year 10 through year 19), given a discount rate of 10 percent? Given a 10 percent discount rate, what is the present value of a perpetuity of 1000 USD per year if the first payment does not begin until the end of year 10? Please...

Question