Question

If the present value of an ordinary, 4-year annuity is $5,000 and interest rates are 10 percent, what's the present value of the same annuity due?

Answer #1

Present value ordinary annuity = Annuity * [1 - 1 / (1 +
r)^{n}] / r

5,000 = Annuity * [1 - 1 / (1 + 0.1)^{4}] / 0.1

5,000 = Annuity * [1 - 0.68301] / 0.1

5,000 = Annuity * 3.16987

Annuity = 1,577.354

Present value of annuity due = (1 + r) * Annuity * [1 - 1 / (1 +
r)^{n}] / r

Present value of annuity due = (1 + 0.1) * 1,577.354 * [1 - 1 /
(1 + 0.1)^{4}] / 0.1

Present value of annuity due = 1.1 * 1,577.354 * [1 - 0.68301] / 0.1

Present value of annuity due = 1.1 * 1,577.354 * 3.16987

**Present value of annuity due = $5,500.01**

If the present value of an ordinary, 2-year annuity is $6,600
and interest rates are 10 percent, what's the present value of the
same annuity due?

Find the present value of 10-year ordinary annuity of $5,000 per
year plus extra $2,000 at the end of 10th year. Assume 5% interest
rate. Assume annual compounding. Include up to 2 decimals.
A.
$38,896.5
B.
$33,547.9
C.
$55,578.6
D.
$35,547.8
E.
$39,836.5

Regarding the present value of an annuity, the present value of
a nine year ordinary annuity will always be worth less compared to
the present value of a nine year annuity due.
i think it is true, please verify i am correct!

f. What is the present value of an ordinary annuity of $1,300
per year for 11 years discounted back to the present at 11
percent?
g. What is the present value of an annuity due of $1,300 per
year for 11 years discounted back to the present at 11
percent?

is the present value of an ordinary annuity larger than the
present value of an annuity due?

An ordinary annuity has an interest rate of 10% and a future
value of 80.00. What would be the future value of this same
annuity, if it were an annuity due instead of a regular annuity?
The future value of this annuity due is $

What is the future value of a 12-year ordinary annuity of $350
if the interest rate is 6.5%? What is the present value of the
annuity? Hint: Solve for PV. What is the future value and present
value if the annuity were an annuity due?

A. What is the present value of a 20-year $6,000 ordinary
annuity paid annually and earning 5% interest?
B. Repeat for an annuity due.

Find the present value of a fifteen-year ordinary annuity that
pays $1340 monthly if the interest rate is 10% compounded monthly
for the first 7 years, and 6% compounded monthly thereafter.

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...

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