Question

An annuity-immediate has 20 annual payments starting at 5 and increasing by 10 every year. The annual effective rate of interest is 7%. Calculate the present value of this annuity.

not a excel solution

Answer #1

You have just purchased an increasing annuity-immediate for
75,000 that makes twenty annual payments as follows:
(a) 5P, 10P, . . . , 50P during years 1 through 10, and
(b) 50P(1.05), 50P(1.05)^2 , . . . , 50P(1.05)^10 during years 11
through year 20.
The annual effective interest rate is 7% for the first 10 years and
5%, thereafter. Solve for P.
P=175.29 I need to know how to get this cause I can't figure it
out

sal
purchases two 20 year annuities immediate for 1000 each. the first
annuity has annual payments and was priced at 5.8% annual effective
rate. the second annuity has semi annual payments and was priced at
5.4% convertible semiannually. sal deposits all payments from two
annuities into an account that pays an annual effective rate of 6%.
what is the balance in Sal’s account at the end of 20 years?

An annuity immediate pays 200 every month for 10 years.
Calculate the present value at the following rates of interest:
Annual effective interest rate of 6%
Nominal interest rate convertible monthly of 8%
Nominal rate of discount convertible once every two years of
4%

You inherited a 15-year annuity-immediate with level annual
payments. You are told that the accumulated value of this annuity
at the end of 15 years is 38,000. You are also told that the
present value at the time of inheritance is $ 15,000. Determine the
level of annual payments. Also, determine the annual effective
interest rate earned by this trust.

A 10-year annuity has annual payments of $1,000. The first
payment is in 1 year. If interest is 5%p.a (effective annual rate)
for the first 3 years followed by 6%p.a (effective annual rate) for
7 years, what is the future value of this annuity at the end of 10
years?
Select one:
a. $13,134.03
b. $13,001.45
c. $12,002.34
d. $13,969.78

Find the present value of a 20-year annuity with annual payments
which pays $600 today and each subsequent payment is 5% greater
than the preceding payment. The annual effective rate of interest
is 10.25%.
Answer: 7851.19
Please show which equations you used and please do not use excel
to answer this question.

Find the accumulated value of a 10-year annuity-immediate of 100
per year if the first 6 payments are invested at an effective rate
of interest of 5% and the final 4 payments are invested at an
effective rate of interest of 4%. (Yield curve method)

11. What is the present value of a 10-year annuity with annual
payments of 50 and an interest rate of 5?
a. Do this
with your calculator, indicating what number you put in each
button.
b. Do this
in Excel, using the annuity formula.
12. What is
the present value of a cash flow of 1000 being paid in 10 years
with an interest rate of 5%?
13. What is
the sum of the calculations in (11) and (12)? What...

A 10-year annuity immediate has a ﬁrst payment of X. The payment
increases by 100 each year for 5 times and stays level afterwards.
Under an eﬀective annual rate of 6.5%, the present value of this
annuity is 3733.2264. Calculate X。 please calculate it with step,
don't use financial calculate with direct answer. Will rate it,
thx:)

Graham is the beneficiary of an annuity due. At an
annual effective interest rate of 5%, the present value of payments
is 123,000. Tyler uses the first-order Macaulay approximation to
estimate the present value of Graham’s annuity due at an annual
effective interest rate 5.4%. Tyler estimates the present value to
be 121,212. Calculate the modified duration of Graham’s annuity at
5%.

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