Question

Determine the present worth and the accumulated amount of the annuity consisting of 8 payments of $12500 each the payments are made at the beginning of each year. Money is worth 15% compounded quarterly.

*CASH FLOW Diagram **Needed**

Answer #1

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Determine the present worth of an annuity of 6 payments of $
120,000 each, the payments are made at the beginning of each year.
Assume money is worth 15% compound annually?

A six-year annuity of $10000 quarterly payments will begin 8
years from now. The discount rate is 9%, compounded quarterly. a.
How much is this annuity worth 5 years from now? b. How much is
this annuity worth today?

What will be the amount accumulated by each of the Given present
investment.
(a) $3,000 in 8 years at 12% Compounded Quarterly.

An annuity pays $20,000 per quarter for 25 years and the
payments are made at the end of each quarter. The first payment is
made at the end of the first quarter. If the annual interest rate
is 8 percent compounded quarterly for the first 10 years, and 12
percent compounded quarterly thereafter, what is the present value
of the annuity (i.e, value of the annuity now)?

What is the present value of the following annuity? $1,070 every
half year at the beginning of the period for the next 14 years,
discounted back to the present at 3.13 percent per year, compounded
semiannually.
You plan to buy a house in 14 years. You want to save money for
a down payment on the new house. You are able to place $348 every
month at the end of the month into a savings account at an annual
rate...

Use the ordinary annuity formula shown to the right to determine
the accumulated amount in the annuity if $10 is invested
semiannually for 20 years at 6.5% compounded semiannually. The
accumulated amount will be

Question 3 (Total marks=7)
(a) Calculate the present value of an annuity due consisting of
three cash flows of
$1,000 each, each one year apart. Use a 6% compounded interest rate
per year.
(3.5 marks)
(b) Calculate the future value at the end of the third period of
an annuity due consisting
of three cash flows of $1,000 each, each one year apart. Use a 6%
compounded
interest rate per year.

Find the present value of the ordinary
annuity.
Payments of $93 made quarterly for at 5.7% compounded
quarterly
Select one:
A. $2873.94
B. $2839.80
C. $2820.64
D. $2865.33

Find the future value of an ordinary annuity if payments are
made in the amount R and interest is compounded as given. Then
determine how much of this value is from contributions and how much
is from interest
R=9200, 6% interest compounded semiannually for 7 years.
The future value of the ordinary annuity is $____?
Round to the nearest cent as needed
The amount from contributions is $___? and the amount from
interest is $___?
Round to the nearest cent...

14. Find the present value of $2000 due in three years and 8
months if money is worth 8% p.a. compounded quarterly.
15. How long does it take for money to double at 5% compounded
annually.
13. Determine the amount of money that must be invested for 245
days at 5.75% to earn $42.46

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