Question

Smith buys an annuity that will provide twenty payments of $1,000 each. The first payment will...

Smith buys an annuity that will provide twenty payments of $1,000 each. The first payment will be made at the end of ten years, and the remaining payments will be made at the end of each two-year interval thereafter. The effective annual rate of interest is 5%.

In which of the following ranges is the net single premium for this annuity?

Possible Answers

A: < $5,600

B: ≥ $5,600 but < $5,620

C: ≥ $5,620 but < $5,640

D: ≥ $5,640 but < $5,660

E: ≥ $5,660

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer

..

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
A 10-year annuity has annual payments of $1,000. The first payment is in 1 year. If...
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
A 10-year annual annuity starts with a payment of 100 at the end of the first...
A 10-year annual annuity starts with a payment of 100 at the end of the first year and increases by 10% each year thereafter. Find the present value of this annuity at the time immediately before the first payment is made if i = 10%.
Will buys a 10 year annuity where payments increase each year by exactly 10%. (Assume the...
Will buys a 10 year annuity where payments increase each year by exactly 10%. (Assume the payments are at the end of each year.) Determine the cost of the annuity if the first payment is $3000 and the interest rate is: (a)j1=3.5% Answer: $ (b)j1=10.3%
(1 point) Mary is to receive an annuity with 29 annual payments. The first payment of...
(1 point) Mary is to receive an annuity with 29 annual payments. The first payment of $ 1,000 is due immediately and each successive payment is 9 % less than the payment for the preceding year. Interest is 12 % compounded annually. Determine the present value of the annuity.
Assume that you just received an ordinary annuity with 9 annual payments of $1,000 each. You...
Assume that you just received an ordinary annuity with 9 annual payments of $1,000 each. You plan to invest the payments at a 7% annual interest rate. How much would you have, in total, at the end of the 8th year? Group of answer choices $10,713.34 $10,503.27 $10,095.42 $11,977.99 $10,297.33 Assume that you just received an ordinary annuity with 6 annual payments of $1,000 each. You plan to invest the payments at a 6% annual interest rate. What will the...
An annuity pays $20,000 per quarter for 25 years and the payments are made at the...
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)?
1. Find the present value of a 30-year annuity-due with semiannual payments in which the first...
1. Find the present value of a 30-year annuity-due with semiannual payments in which the first payment is $20,000, the second payment is $21,600, the third payment is $23,328, the fourth payment is $25,194.24, etc., assuming an annual effective rate of interest of 16%. 2. Find the present value of a varying perpetuity-DUE in which payments are made every two years with the first payment being $245, and each payment thereafter is $150 larger than the previous payment. Assume the...
A 20-year annuity pays $2,250 per month, and payments are made at the end of each...
A 20-year annuity pays $2,250 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 percent compounded monthly thereafter, what is the present value of the annuity?
Find the value (today, time zero) of an annuity that makes equal annual payments of $1,000...
Find the value (today, time zero) of an annuity that makes equal annual payments of $1,000 each year with its first payment at the end of year 7 and its last payment at the end of year 15. The interest rate is 8.3%.
Assume you are to receive a 20-year annuity with annual payments of $60. The first payment...
Assume you are to receive a 20-year annuity with annual payments of $60. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 20. You will invest each payment in an account that pays 10 percent. What will be the value in your account at the end of Year 30?(FV twice) $6,854.81 $7,427.83 $8,709.88 $9,427.83
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT