Question
In: Accounting
Using the values below, answer the questions that follow: Amount of annuity Interest rate Deposit period...
- Using the values below, answer the questions that follow:
|
Amount of annuity |
Interest rate |
Deposit period (years) |
|
|
$500 |
9% |
10 |
- Calculate the future value of the annuity, assuming that it is
- An ordinary annuity.
- An annuity due.
- Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity—ordinary or annuity due—is preferable as an investment? Explain why.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
4. Using the values below, answer the questions that follow: Amount of annuity Interest rate Deposit...
4. Using the values below, answer the questions that
follow:
Amount of annuity Interest rate Deposit period (years)
$500
9%
10
a) Calculate the future value of the annuity, assuming that it
is
(1) An ordinary annuity. (0.5 marks)
(2) An annuity due. (0.5 marks)
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 as an investment? Explain why. (0.5 Marks)
Using the values below, answer the questions that follow: Amount of annuity annually: 2,500 Interest rate:...
Using the values below, answer the questions that follow:
Amount of annuity annually: 2,500 Interest rate: 11% Deposit
period (years) : 6
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, ordinary or annuity due,
is preferable as an investment? Explain why.
Future value of an annuity Using the values below, answer the questions that follow. (Click on...
Future value of an annuity
Using the values below, answer the questions that
follow. (Click on the icon located on the top-right corner of
the data table below in order to copy its contents into a
spreadsheet.)
Amount of annuity
Interest rate
Deposit period (years)
$7,000
6%
6
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...
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.)
Part 1 Calculate the missing values in the table below. Then answer the questions that follow...
Part 1
Calculate the missing values in the table below. Then answer the
questions that follow it. GDP are in billions of dollars and the
Consumer Price Index (CPI) is a percentage. CPI for 2001 is
98.6
Year Nominal GDP CPI RealGDP ri
2002 $10,469.58 Billion 100.0
2003 $10,971.34 Billion 102.3
2004 $11,734.30 Billion 105.0
2005 $12,601.00 Billion 108.6
All figures must be calculated to 2 decimal places and in the
correct formats on a separate paper. You must...
Answer the questions below. Show all work. Loan Amount: $10,000,000.00 Interest Rate: 6-3/4% Amortization: ...
Answer the questions below. Show all work.
Loan Amount: $10,000,000.00
Interest Rate: 6-3/4%
Amortization: 30 years
Term: 10
years
Assume the above loan is interest only for the first three (3)
years.
What is the Annual Debt Service (ADS) in the first year?
How much interest (cumulative) will have been paid at the end of
year 3?
How much principal will be due at maturity?
How much interest will have been paid over the 10...
Using the sample of scores from the two variable conditions below, answer the questions that follow...
Using the sample of scores
from the two variable conditions below, answer the questions that
follow . Mean percentage accuracy on a judgment task by task
instruction condition ( complete the task as quickly as possible v.
complete the task as accurately as possible). Speed:
76,52,89,75,70,61,90,88,75,81 Accuracy: 77,66,82, What is the mean
of speed condition? What is the mean of accuracy condition? What is
the standard deviation of the speed condition? What is the standard
deviation of the accuracy condition?...
For a highly repetitive operation, using the data shown below, answer the questions that follow: (10...
For a highly repetitive operation, using the data
shown below, answer the questions that follow: (10 points)
First unit (minutes) = 11
Learning curve = 90%
Salary per hour = $10.50
What is the time required to produce the 20th
unit?
If steady state is achieved with 20 units,what is the
labor cost per unit for this operation?
What is the present value of a five-period annuity of $3,000 if the interest rate per...
What is the present value of a five-period annuity of $3,000 if
the interest rate per period is 12% and the first payment is made
today?
Three thousand dollars is deposited into an account paying 10%
annually to provide three annual withdrawals of $1,206.34 beginning
in one year. How much remains in the account after the second
payment has been withdrawn?
You will be receiving cash flows of: $1,000 today, $2,000 at end
of year 1, $4,000 at end of...
An annuity-due has 26 payments of $300 per period. The effective rate of interest per period...
An annuity-due has 26 payments of $300 per period. The effective
rate of interest per period is 8% for the first 12 periods and 5%
for the following 14 periods.
(A) Find the accumulated value of the annuity using the portfolio
method. Round your answer to 2 decimal places.
(B) Find the accumulated value of the annuity using the yield-curve
method.. Round your answer to 2 decimal places.
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