You purchase an ordinary annuity with 4% interest and will receive regular quarterly payments of $4500 for 10 years. What is the present value of the annuity?
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You purchase an ordinary
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityWhat is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?
- For an ordinary annuity with a five annual payments of $100 and a 10% interest rate, how many years will the first payment earn interest?You purchase a $10, 000 annuity with payments at the end of each year for 30 years and an effective interest rate i = .04. The annuity pays $500 at the end of each year and an additional $X at the beginning of years 6 through 12. Find X.What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?
- A perpetuity will pay $1,000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in three years. What is the duration of this annuity if the rate of interest is 8%? Show your calculationsFor an ordinary annuity with five annual payments of $100 and a 10% interest rate, how many years will the first payment earn interest? What will this payment’s value be at the end? Answer this same question for the fifth payment.
- What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if interest is earned at a rate of 5%, compounded annual. What is the future value?A 10%, 4-year annuity pays $500.00 each year. What is the future value of the annuity?