A ten-year annuity immediate pays 2000 at the end of the first year, and payments increase...

A ten-year annuity immediate pays 2000 at the end of the first year, and payments increase by 100 each year. If the annuity yields 6% annual effective interest, determine the Macaulay duration.

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jeff jeffy answered 1 year ago

A fifteen-year annuity-immediate has monthly payments. The first payment is $300 and the monthly increase is...

A fifteen-year annuity-immediate has monthly payments. The first payment is $300 and the monthly increase is $50. Calculate the accumulated value of the annuity if the annual effective interest rate is 4%. pls show work and formula, thanks!

Gerry pays $W to buy a ten-year annuity with end-of-year payments of $1,400. This purchase price...

Gerry pays $W to buy a ten-year annuity with end-of-year payments of $1,400. This purchase price allows her to replace her capital by means of a savings account that has an annual effective interest rate of 3% and also to earn an overall annual yield of 6% for the ten years of the annuity. Find W.? The answer is 9508.9. Please show steps to the answer without use of excel.

Dipper has a 10 year increasing annuity immediate that pays $100 at the end of the...

Dipper has a 10 year increasing annuity immediate that pays $100 at the end of the first year, $200 at the end of the second year, ... , and $1000 at the end of the 10th year. He exchanges the annuity for a perpetuity of equal value that pays X at the end of each year. If the effective annual interest rate is 3%, find the value of X

Sumeet has a 13 year annuity that pays at the end of each year. The first...

Sumeet has a 13 year annuity that pays at the end of each year. The first payment is $2000 and the payments grow by R = 5% per year. Interest rates are r = 6% annually. a) How much is Sumeet's annuity worth? Consider the following two options: Option A: An annuity with the same number of payments, only each payment is twice the payment of his current annuity. Option B: An annuity where the initial payment is the same...

Sumeet has a 19 year annuity that pays at the end of each year. The first...

Sumeet has a 19 year annuity that pays at the end of each year. The first payment is $6000 and the payments grow by R = 7% per year. Interest rates are r = 4% annually. a) How much is Sumeet's annuity worth? Consider the following two options: Option A: An annuity with the same number of payments, only each payment is twice the payment of his current annuity. Option B: An annuity where the initial payment is the same...

A UK lottery prize pays 1000$ at the end of the first year, 2000$ at the...

A UK lottery prize pays 1000$ at the end of the first year, 2000$ at the second, 3000$ the third, and so on for 20 years. If there is only one prize in the lottery, 10000 tickets are sold, and you could invest your money elsewhere at 15 percent interest, how much is each ticket worth, on average ? Answer : 3.98 $ Can anyone solve it by converting Arithmetic Series to Annuity first, and then converting Annuity to Present...

A 30-year annuity has end-of-month payments. The first year the payments are $120 each. In subsequent...

A 30-year annuity has end-of-month payments. The first year the payments are $120 each. In subsequent years the monthly payment increases by $5 over what it was the previous year. Find the accumulated value of this annuity if AEIR=3% A. 84,820 B. 42,390 C. 105,070 D. 100,620 E. 41,560

A 15-year annuity pays $1,000 per month, and payments are madeat the end of each...

A 15-year annuity pays $1,000 per month, and payments are made at the end of each month. The interest rate is 15 percent compounded monthly for the first six years and 14 percent compounded monthly thereafter. What is the present value of the annuity?Multiple Choice$108,515.59$72,323.18$867,878.16$70,876.72$73,769.64

A 20-year annuity pays $1,450 per month, and payments are madeat the end of each...

A 20-year annuity pays $1,450 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 percent compounded monthly thereafter, what is the present value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

A 13-year annuity pays $1,400 per month, and payments are made at the end of each...

A 13-year annuity pays $1,400 per month, and payments are made at the end of each month. The interest rate is 12 percent compounded monthly for the first Five years and 11 percent compounded monthly thereafter. Required: What is the present value of the annuity? A) $1,343,944.86 B) $109,755.50 C) $111,995.40 D) $152,061.20 E) $114,235.31

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