Question

What is the present value of an annuity that pays $20,000 ON THE FIRST DAY of...

What is the present value of an annuity that pays $20,000 ON THE FIRST DAY of each year for the next ten years if the discount rate is 8.75%? Group of answer choices

A. $141,133.27

B. $129,777.72

C. $326,529.23

D. $300,256.76

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Given

Annual payments = 20000

Nper= 10 years

Rate= 8.75%

We can calculate present value of the annuity using excel function:

Present value of annuity = pv(rate,nper, pmt,fv,type)

Here we take type as1 because       annuity payments are made at the beginning of the year

Using excel :

Present value of annuity = pv(8.75%,10,-20000,0,1)     

                     = $141133.27   

Option A is correct

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
What is the present value of an annuity that pays $20,000 at the end of each...
What is the present value of an annuity that pays $20,000 at the end of each year for the next ten years if the discount rate is 8.75%? Group of answer choices A. $141,133.27 B. $129,777.72 C. $8,644.45 D. $300,256.76
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...
10. What is the present value of an annuity of RM4,000 received at the beginning of...
10. What is the present value of an annuity of RM4,000 received at the beginning of each year for the next eight years? The first payment will be received today, and the discount rate is 9% (round to nearest RM1).
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)?
What is the present value of an annuity that pays $290 at the beginning of each...
What is the present value of an annuity that pays $290 at the beginning of each year for 24 years if the annuity earns 17% annually?
What is the present value of an annuity of $6,000 per year, with the first cash...
What is the present value of an annuity of $6,000 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)      Present value $   
What is the present value of a five-year $20,000 ordinary annuity plus of a lump sum...
What is the present value of a five-year $20,000 ordinary annuity plus of a lump sum of $110,000 at the end of year 5. Discount rate of 12% Can you teach me how to do this on excel?
What is the value of an annuity that pays $685 at the end of each year...
What is the value of an annuity that pays $685 at the end of each year in years 3 through 14 at the end of year 21? The discount rate (opportunity cost) is 3.7%. (That is, find the value of this annuity at the end of year 21). Round to the nearest $1, no $ symbol. Blank 1. Calculate the answer by read surrounding text.
What is the present value of a five-year $20,000 ordinary annuity plus of a lump sum...
What is the present value of a five-year $20,000 ordinary annuity plus of a lump sum of $110,000 at the end of year 5. Discount rate of 12% Can you please show me how to do this in excel instead? Thank you!
a. What is the present value of a 3-year annuity of $150 if the discount rate...
a. What is the present value of a 3-year annuity of $150 if the discount rate is 7% b. What is the present value of the annuity in (a) if you have to wait an additional year for the first payment.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT