Question

For the following annuity due, determine the nominal annual rate of interest.

Future Value |
Present Value |
Periodic Rent |
Payment Period |
Term |
Conversion Period |

$6,818 |
– |
$490 |
1 year |
9 years |
monthly |

Answer #1

nominal annual rate of interest = 1.75%

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For the following ordinary annuity, determine the size of the
periodic payment.
Future Value
Present
Value
Payment Period
Term of Annuity
Interest Rate
Conversion Period
–
$19,300.00
1 quarter
14 years
10.5%
quarterly
The payment is $__.
(Round the final answer to the nearest cent as needed. Round
all intermediate values to six decimal places as needed.)

Determine the size of the periodic payment of the following
ordinary general annuity.
Future Value
Payment Period
Term of Annuity
Interest Rate
Conversion Period
$16 comma 500
six months
9 years
11.4%
quarterly
The periodic payment is $
nothing.
(Round the final answer to the nearest cent as needed. Round
all intermediate values to six decimal places as

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

Find the future value of the following ordinary annuity.
Periodic Payment
Payment Interval
Term
Interest Rate
Conversion Period
$122.00
1 month
5
years
4%
quarterly
The future value is
$nothing.
(Round the final answer to the nearest cent as needed. Round
all intermediate values to six decimal places as needed.)

Present Value for Various Compounding
Periods
Find the present value of $500 due in the future under each of
the following conditions. Do not round intermediate calculations.
Round your answers to the nearest cent.
9% nominal rate, semiannual compounding, discounted back 5
years.
$
9% nominal rate, quarterly compounding, discounted back 5
years.
$
9% nominal rate, monthly compounding, discounted back 1
year.
$

Find the payment that should be used for the annuity due whose
future value is given. Assume that the compounding period is the
same as the payment period.
$17,000; monthly payments for 9 years; interest rate 9.1%
The payment should be $
(Do not round until the final answer. Then round to the nearest
cent as needed.)

Present value of an ordinary annuity and annuity due.
Jill Morris is presently leasing a small business computer from
Eller Office Equipment Company. The lease requires 10 annual
payments of $6,000 at the end of each year and provides the lessor
(Eller) with an 8% return on its investment. You may use the
following 8% interest factors:
9 Periods
10 Periods
11 Periods
Future Value of 1
1.99900
2.15892
2.33164
Present Value of 1
.50025
.46319
.42888
Future Value of...

Which of the following statements is CORRECT?
a. The present value of a 3-year,
$150 annuity due will exceed the present value of a 3-year, $150
ordinary annuity.
b. An investment that has a nominal
rate of 6% with semiannual payments will have an effective rate
that is smaller than 6%.
c. If a loan has a nominal annual
rate of 8%, then the effective rate can never be greater than
8%.
d. The proportion of the payment
that goes...

Present value of an ordinary annuity and annuity due. (Show your
work)
Jill Morris is presently leasing a small business computer from
Eller Office Equipment Company. The lease requires 10 annual
payments of $6,000 at the end of each year and provides the lessor
(Eller) with an 8% return on its investment. You may use the
following 8% interest factors:
9 Periods 10
Periods 11 Periods
Future Value of
1
1.99900
2.15892
2.33164
Present Value of
1
.50025
.46319 ...

Find the payment that should be used for the annuity due whose
future value is given. Assume that the compounding period is the
same as the payment period. $19,000; quarterly payments for 9
years; interest rate 5.8% The payment should be $___ (Round to the
nearest cent as needed.)

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