Find the present value of a continuous increasing annuity with a term of 10 years if...

Find the present value of a continuous increasing annuity with a term of 10 years if the force of interest is δ = 0.04 and if the rate of payment at time t is t^2 per annum.
Apparently the answer is 247.6978 but I'm not sure how to get it.

Expert Solution

Present value of continuous increasing annuity

=

=247.698

jeff jeffy answered 2 years ago

Find the present value of a deferred annuity of $500 a year for 6 years that...

Find the present value of a deferred annuity of $500 a year for 6 years that is deferred 5 years if money is worth 6% Please show work!

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...

eBook Present Value of an Annuity Find the present value of thefollowing ordinary annuities. Do...

Present Value of an Annuity Find the present value of the following ordinary annuities. Do not round intermediate calculations. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown...

Present Value of an Annuity What is the present value of a $400 annuity payment over...

Present Value of an Annuity What is the present value of a $400 annuity payment over 6 years if interest rates are 9 percent? $670.84 $2,013.18 $238.51 $1,794.37

the present value of an annuity for 2 years, with the first payment at the end...

the present value of an annuity for 2 years, with the first payment at the end of 10 years is 40,239 pesos. If money is worth 4.94%, what is the value of an annuity for 5 years?

Computing the Value of Deferred Annuity What is the present value of 6 years of annual...

Computing the Value of Deferred Annuity What is the present value of 6 years of annual cash receipts of $40,800 at the end of each year that begins two years from today, assuming a 4% interest rate? Please show work and formula(s)!

PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities. Discounting occurs once...

PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent. $700 per year for 16 years at 6%. $ $350 per year for 8 years at 3%. $ $800 per year for 6 years at 0%. $ Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. $700 per year for 16 years at 6%. $ $350 per year...

PRESENT VALUE OF AN ANNUITY - (a) What is the present value of an asset that...

PRESENT VALUE OF AN ANNUITY - (a) What is the present value of an asset that pays $10,000 per year at the end of the next four years if the appropriate discount rate is 5 percent? What total return would you earn if you bought this asset and it paid its expected cash flows on time each year for the next four years? Prove that you earned the same return that you would have, had you put your money in...

Present value of an annuity Consider the following case. Amount of annuity Interest rate Period (years)...

Present value of an annuity Consider the following case. Amount of annuity Interest rate Period (years) $44,000 12% 13 a. Calculate the present 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—ordinary or annuity due—is preferable? Explain why. The present value of the ordinary annuity is____. (Round to the nearest cent.)

For an interest rate of 3% compounded monthly, find the present value of an annuity of...

For an interest rate of 3% compounded monthly, find the present value of an annuity of $129 at the end of each month for 5 months and $259 thereafter at the end of each month for further 1 years. Round your answer to TWO decimals. The present value of the annuity=

Question