You are given the present value of a n-payment annuity-due paying 1 per year is 13.0853...

You are given the present value of a n-payment annuity-due paying 1 per year is 13.0853 and the present value of a payment of 1 payable at the end of m years is 0.613913.

Find the present value of an m-year deferred annuity-due with n-payments of 50,000.

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

What is the present value of a $100-payment, 100-year annuity due if the interest rate is...

What is the present value of a $100-payment, 100-year annuity due if the interest rate is 14% per year? What is the future value of a $50-payment, 50-year annuity due if the interest rate is 9% per year?

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 accumulated value just after the last payment under 12-year annuity of 1000 per year, paying...

The accumulated value just after the last payment under 12-year annuity of 1000 per year, paying effective annual interest rate of 6%, is to be used to purchase a 10-year annuity at an effective annual interest rate of 7% with the first payment to be made 4 years after the last payment under the first annuity. Find the amount of the payment under the 10-year annuity assuming that the 7% rate starts from the time of the last payment under...

Find the periodic payment for the following simple annuity due. Future Value $21,200 Present Value _________?...

Find the periodic payment for the following simple annuity due. Future Value $21,200 Present Value _________? Payment Period 1 month Term of Annuity 10 years Interest Rate 11% Conversion Period monthly The periodic payment is $______ . (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The present value of an annuity due is equal to the present value of an ordinary...

The present value of an annuity due is equal to the present value of an ordinary annuity times (1 + i). Select one: True False

Annuity Due Converting an annuity to an annuity due decreases the present value. Generally speaking, this...

Annuity Due Converting an annuity to an annuity due decreases the present value. Generally speaking, this statement is True or False? Explain it. [“Converting an annuity to an annuity due” means if you always make payment at the end of each year, now you change to make the payment at the beginning of each year.] You believe you will need to have saved $1,000,000 by the time you retire in 40 years in order to live comfortably. In order to meet...

Find the present value of a 20 year annuity due where payments are $1, 000 at...

Find the present value of a 20 year annuity due where payments are $1, 000 at the beginning of the first year, third year, etc. and payments are $1, 500 at the beginning of the second year, fourth year, etc. Here effective annual interest is 5%. Hint: Draw a time diagram!!!

Hello, Present value of an annuity due is €600,000 Yearly repayments is = €50,000 Period (n)...

Hello, Present value of an annuity due is €600,000 Yearly repayments is = €50,000 Period (n) = 10 years Calculate the interest rate on this loan, assuming the first payment is made immediately. Please show all your working out.

Li Life Insurance Company is paying Cora an annuity due of 234 per year for the...

Li Life Insurance Company is paying Cora an annuity due of 234 per year for the next 10 years. Calculate the Modified duration of Cora's annuity at an annual effective interest rate of 8.5%

1 a) The present value of an annuity lasting 72 interest periods and paying $ 2,000...

1 a) The present value of an annuity lasting 72 interest periods and paying $ 2,000 at the beginning of each “k” interest periods is $ 9,538.60. Given that the effective interest rate per interest period is 3.6575%, find k. 1 b) Find an expression in terms of i(4) for the accumulated value at the end of the twenty-one years of an annuity that pays $ 400 at the beginning of each four-month period for 21 years. Your expression should...

Subjects