Consider a geometrically increasing annuity immediate. It's
initial payment is $1000, and every following annual payment...
Consider a geometrically increasing annuity immediate. It's
initial payment is $1000, and every following annual payment is
1.03 times the payment before it. The annual effective rate is 0.04
over a 10 year term. Find its present value.
An annuity-immediate with 20 annual payments starts with a
payment of 300 and each payment thereafter is 25 more than the
previous payment. The effective annual interest rate is 5%.
Calculate the present value. Be sure to include the appropriate
equation or expression of value that you use. Instead of a 20 year
annuity-immediate, it is a perpetuity. What would the present value
be in that case?
What is the present worth of a geometrically increasing series
with a first year payment of $11,000 increasing at 6% per year for
25 years if the interest rate is 6% compounded annually?
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?
3-year annuity immediate with monthly payments has an initial
payment of 200. Subsequent monthly payments are x% more than each
preceding payment. Given that the amount of the 14th payment is
481.969, determine the present value of the annuity using a 9%,
compounded monthly, interest rate.
Strahd bought a 20-year annuity-immediate with payment size 350 at
an annual effective rate of 4%. Just after receiving the eighth
payment, Strahd’s life forever changed and he sold the remainder of
the annuity, reinvesting the proceeds in a level-payment
perpetuityimmediate.
What is the payment size K of this perpetuity?
A cash flow series is increasing geometrically at the rate of 7%
per year. The initial payment at EOY 1 is $5000, with increasing
annual payments ending at EOY 20. The interest rate is 17%
compounded annually for the first eight years and 5% compounded
annually for the remaining 12 years. Find the present amount that
is equivalent to this cash flow.
Annuity Plan A has an initial annual payment that starts at
$10,000 and grows at 5% per year. Plan B has a flat payment of
$12,500 for the 10 years.
a. Which 10 year annuity is better, if the annual r=8%?
b. At what discount rate would the annuity owner be indifferent
between the two plans?
Strahd bought a 20-year annuity-immediate with payment size 350 at
an annual effective rate of 4%. Just after receiving the eighth
payment, Strahd’s life forever changed and he sold the remainder of
the annuity, reinvesting the proceeds in a level-payment
perpetuityimmediate.What is the payment size K of this perpetuity?
For 50000, Smith purchases a 36-payment annuity-immediate with
monthly payments. Assume an effective annual interest rate of
12.68%. For each of the following cases find the unknown amount
X.
(a) The first payment is X and each subsequent payment is 50
more than the previous one.
(b) The first payment is X and each subsequent payment until
the 18th pay- ment (and including the 18th payment) is 0.2% larger
than the previous one. After the 18th payment, each subsequent
payment...
A bond with a face value of $1000 will pay it's next semi-annual
$50 coupon payment in exactly 6-months. What is the price of the
bond if it matures in 6 years and the required yield-to-maturity is
14% APR compounded semi-annually?