Find the PV of a 15-year annuity-immediate with payments of 15, 14, 13, ..., 1 at...

Find the PV of a 15-year annuity-immediate with payments of 15, 14, 13, ..., 1 at an annual effective rate of interest

i = 3%.

Find the PV of a 26-year annuity-immediate with payments of 1, 2, 3, ..., 26 at an annual effective rate of interest

i= 7%.

Expert Solution

Number of years =15
Rate =3%
PV of annuity due =15+14/1.03+13/1.03^2+12/1.03^3+11/1.03^4+10/1.03^5+9/1.03^6+8/1.03^7+7/1.03^8+6/1.03^9+5/1.03^10+4/1.03^11+3/1.03^12+2/1.03^13+1/1.03^14=105.13

PV of 26 year annuity due =1+2/(1+7%)+3/(1+7%)^2+4/(1+7%)^3+5/(1+7%)^4+6/(1+7%)^5+7/(1+7%)^6+8/(1+7%)^7+9/(1+7%)^8+10/(1+7%)^9+11/(1+7%)^10+12/(1+7%)^11+13/(1+7%)^12+14/(1+7%)^13+15/(1+7%)^14+16/(1+7%)^15+17/(1+7%)^16+18/(1+7%)^17+19/(1+7%)^18+20/(1+7%)^19+21/(1+7%)^20+22/(1+7%)^21+23/(1+7%)^22+24/(1+7%)^23+25/(1+7%)^24+26/(1+7%)^25 =124.98

jeff jeffy answered 2 years ago

Find the PV of a 26-year annuity-immediate with payments of 1, 2, 3, ..., 26 at...

Find the PV of a 26-year annuity-immediate with payments of 1, 2, 3, ..., 26 at an annual effective rate of interest i = 7%.

1. Present Value of $1 Annuity Table: Find the PV of $1/year annuity for each period...

1. Present Value of $1 Annuity Table: Find the PV of $1/year annuity for each period and discount rate in the table below. Period 8% 10% 20% 10 15 30

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.

Question text Find the PV of an annuity, which starts at $1 per year (payable at...

Question text Find the PV of an annuity, which starts at $1 per year (payable at the end of the year) and increases by $1 per year to a value of $15, then decreases by $1 per year to the final payment of $1. Assume i = 0.07

3-year annuity immediate with monthly payments has an initial payment of 200. Subsequent monthly payments are...

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.

What is the PV of an ordinary annuity with 10 payments of $67,450 if the appropriate...

What is the PV of an ordinary annuity with 10 payments of $67,450 if the appropriate interest rate is 71 percent? 7.1 percent

what is the pv of an ordinary annuity with 10 payments of 4100 if the appropriate...

what is the pv of an ordinary annuity with 10 payments of 4100 if the appropriate interest rate is 5%? Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $53000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7%. How much would it cost her to buy such an annuity today? What's the present...

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!

____20.What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate...

____20.What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 6.5%? a. $15,809.44 b. $16,641.51 c. $17,517.38 d. $18,439.35 e. $19,409.84 ____21.Your aunt is about to retire, and she wants to buy an annuity that will supplement her income by $65,000 per year for 25 years, beginning a year from today. The going rate on such annuities is 6.25%. How much would it cost her to buy such an annuity today?...

(b) Encik Ramli borrows RM20,000 and will repay the loan under a 25-year annuity immediate payments....

(b) Encik Ramli borrows RM20,000 and will repay the loan under a 25-year annuity immediate payments. The annual repayment is calculated at an effective interest rate of 8% with increment of RM50 each year. (i) Calculate the amount of the first payment. (ii) Calculate the outstanding balance after the first three payments have been made. (iii) Explain your answer to part (ii) (iv) Calculate the total amount of interest paid over the term of the loan.

Question