Question

I invest in a 20-year annuity due with $115 monthly payments, with a 6.09% interest rate....

I invest in a 20-year annuity due with $115 monthly payments, with a 6.09% interest rate. What’s the annuity's future value, and how much interest will I earn?

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
At an annual effective interest rate, i, where i > 0, a 40-year annuity-due with quarterly...
At an annual effective interest rate, i, where i > 0, a 40-year annuity-due with quarterly payments of $6 has the same present value as a 20-year annuity-due with quarterly payments of $8. Determine i. (ALSO please draw any time diagrams that would be helpful for this problem)
An ordinary annuity has a present value of $1,000,000. The annuity has monthly payments. The interest...
An ordinary annuity has a present value of $1,000,000. The annuity has monthly payments. The interest rate on the annuity is 10% APR. Which of the following represents the present value if this were an annuity due? a. $1,000,000 x 1.01 b. $1,000,000 / 1.10 c. $1,000,000 / 1.008333333 d. $1,000,000 x 1.008333333 e. $1,000,000 x 1.10 If you double the initial investment, then the future value will be more than doubled for a multi-period investment, everything else equat (Hint:...
If you make monthly payments of $491.00 into an ordinary annuity earning an annual interest rate...
If you make monthly payments of $491.00 into an ordinary annuity earning an annual interest rate of 3.2% compounded monthly, how much will you have in the account after 3 years? After 8 years?
What is the future value of a 5-year annuity due with annual payments of $1,855, evaluated...
What is the future value of a 5-year annuity due with annual payments of $1,855, evaluated at a 5.69 percent interest rate? Please include excel formulas.
Suppose you are going to receive $13,800 per year for six years. The appropriate interest rate...
Suppose you are going to receive $13,800 per year for six years. The appropriate interest rate is 8.7 percent. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due? Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? Suppose you plan to invest the payments for six...
Suppose you are going to receive $23,000 per year for 9 years. The appropriate interest rate...
Suppose you are going to receive $23,000 per year for 9 years. The appropriate interest rate is 12 percent.    a. What is the present value of the payments if they are in the form of an ordinary annuity?       b. What is the present value if the payments are an annuity due?      c. Suppose you plan to invest the payments for 9 years, what is the future value if the payments are an ordinary annuity?      d. Suppose...
Suppose you are going to receive $14,400 per year for six years. The appropriate interest rate...
Suppose you are going to receive $14,400 per year for six years. The appropriate interest rate is 9.5 percent. a. What is the present value of the payments if they are in the form of an ordinary annuity? b. What is the present value if the payments are an annuity due? Suppose you plan to invest the payments for six years. c. What is the future value if the payments are an ordinary annuity? d. What is the future value...
I’m considering setting up a forty year annuity with $50 biweekly payments accruing 6% interest. Alternatively,...
I’m considering setting up a forty year annuity with $50 biweekly payments accruing 6% interest. Alternatively, I could deposit a single lump sum into a compound interest savings account with the same interest rate and compounding period. If I want the same future value in forty years, how much should that lump sum be?
15.a Calculate the FV of (a) an ordinary annuity and (b) an annuity due with payments...
15.a Calculate the FV of (a) an ordinary annuity and (b) an annuity due with payments of $2,000 at the interest rate of 12% per year. (a) $(                     ); (b) $(                            ) 15.b Calculate the PV of (a) an ordinary annuity and (b) the annuity due with 5 payments of $2,000 at the interest rate of 12%. (a) $(                       ); (b) $(                      ) (Please hand write and show all steps of the solution no Excel no typing I need to...
Suppose you are going to receive $10,000 per year for 6 years. The appropriate interest rate...
Suppose you are going to receive $10,000 per year for 6 years. The appropriate interest rate is 11 percent. Suppose you plan to invest the payments for 6 years, what is the future value if the payments are an ordinary annuity?      d. Suppose you plan to invest the payments for 6 years, what is the future value if the payments are an annuity due?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT