You expect to receive P1,000 at the end of each of the next 3 years. You will deposit these payments into an account which pays 10%, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year?
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- Show Solution. Topic: Perpetuities 3. What is the present value of P746 perpetuity payable at the end of each month if the first payment begins at the end of 2 years; money is worth 12.6% compounded monthly?May I ask for an explanation and solution to the question for a better understanding. Thank you! 5. What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a 7.5% semi-annual interest rate? a. P1,161.68 b. P1,348.48 c. P3,828.34 d. P287.13May I ask for an explanation and solution to the question for a better understanding. Thank you! 15. You expect to receive P1,000 at the END of each of the next 3 years. You will deposit these payments into an account which pays 10 percent, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year? a. P1,331.00 b. P1,340.10 c. P3,318.01 d. P1,157.63
- You plan to deposit $3,000 at the end of each year for three years, starting with the first deposit today. If the account pays 6%, how much will you have at the end of year 3? A. 3,573B. 10,124 C. 10,719Q4. A local bank advertises the following deal: "Pay us $100 at the end of each year for 10 yearsand then we will pay you (or your beneficiaries) $100 at the end of each year forever."A. Calculate the present value of your payments to the bank if the interest rate is 8.25%.B. What is the present value of a $100 perpetuity deferred for 10 years if the interest rate is8.25%?C. Is this a good deal?2. It is desired to have P200,000 two years from now by depositing an initial amount P, plus P50,00 on the 6th month and another P50,000 after 1 year. What would that initial amount be if interest rate is 12% pa compounded monthly? O P57,060.33 O P 69,277.10 O P 66,038.51 O P61,990.42
- b._ You want to have GH¢ 50,000 in your savings account five years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 9.5 percent interest, what amount must you deposit each year?What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The appropriate interest rate is 7 percent. Answers: a. $10,000 b. $6,452 c. $20,423.74 d. $4,657 An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? Answers: a. $1,134 b. $5,324 c. $2,345.50 d. $2,569.77 *PLEASE SHOW ALL STEPS! CANNOT USE EXCEL TO SOLVE! CAN USE CALCULATOR FUNCTIONS!!If you deposit RM15,000 in an account earning 20% with semi annually compounding, how much would you have in the account after 7 years? Select one: a. RM11,265.90 b. RM41,657.90 c. RM56,962.47 d. RM32,768.89
- You expect to receive P1,000 at the END of each of the next 3 years. You will deposit these payments into an account which pays 10 percent, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year?Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9% interest, compounded annually. How much will you have when the CD matures? a. $6,358.50 b. $6,190.68 c. $5,582.22 d. $6,976.63 e. $2,439.80You expect to receive P1,000 at the end of each of the next 3 years. You will deposit these payments into an account which pays 10%, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year?