Question

(a) calculate the future value of an annuity of RM100,000 made at the beginning of every...

(a) calculate the future value of an annuity of RM100,000 made at the beginning of every year for 10 year if the bank interest rate is 0.2%.

(b) calculate the future value of an annuity of RM100,000 made at the beginning of every year for 10 year if the bank interest rate is 0.25%.

Please help me and answer with formula.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

(a) Future value of annuity due

PMT = 100,000

n = 10

r = 0.2% = 0.002

The future value of the annuity due is RM1,011,066.264837

(b) The present value of the annuity due

PMT = 100,000

n = 10

r = 0.25% = 0.0025

The present value of the annuity due is RM988,852.356376

I hope this helps! Please upvote :-)

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
Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your...
Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Future Value of the Annuity $90 every month Annuity PaymentPayment FrequencyTime Period (years)Nominal Rate (%)Interest CompoundedFuture Value of the Annuity$90 every month for payment every month for 1.5 years at 6% interest compounded monthly = future value of the annuity
1. Calculate the present value of an annuity stream that pays $20,000 every year for 5...
1. Calculate the present value of an annuity stream that pays $20,000 every year for 5 years on the last day of each year if your investment pays 20% compounded quarterly? 2. Calculate the future value of $20,000 invested today for 6 years if your investment pays 4% compounded annually 3. Calculate the future value of an annuity stream that pays $6,000 every year for 5 years on the last day of each year if your investment pays 10% compounded...
An annuity immediate pays 200 every month for 10 years. Calculate the present value at the...
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%
Find the future value of an ordinary annuity if payments are made in the amount R...
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...
Calculate the rent of a decreasing annuity at 9% compounded quarterly if payments are made every...
Calculate the rent of a decreasing annuity at 9% compounded quarterly if payments are made every quarter-year for 7 years and the present value is $80,000. Round to the nearest cent.
Future value: annuity versus annuity due What's the future value of a 8%, 5-year ordinary annuity...
Future value: annuity versus annuity due What's the future value of a 8%, 5-year ordinary annuity that pays $600 each year? Round your answer to the nearest cent. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.
Future Value of an Annuity: Stone will deposit $9,000 at the end of each year for...
Future Value of an Annuity: Stone will deposit $9,000 at the end of each year for 10 years in a fund that earns 6%, compounded annually. What is the total amount of the fund at the end of 10 years? Please show formula and work!
What is the future value of 20 periodic payments of $4,720 each made at the beginning...
What is the future value of 20 periodic payments of $4,720 each made at the beginning of each period and compounded at 8%? What is the present value of $3,440 to be received at the beginning of each of 28 periods, discounted at 5% compound interest? What is the future value of 16 deposits of $2,920 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 16th period.) What is...
What is the present value of the following annuity? $3,868 every half year at the beginning...
What is the present value of the following annuity? $3,868 every half year at the beginning of the period for the next 3 years, discounted back to the present at 6.78 percent per year, compounded semiannually. Round the answer to two decimal places.
What is the future value in 19 years of an ordinary annuity cash flow of $855...
What is the future value in 19 years of an ordinary annuity cash flow of $855 every quarter of a year at the end of the period, at an annual interest rate of 7.85 percent per year, compounded quarterly?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT