Question

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%.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How much would you be willing to pay today for an ordinary annuity that makes equal...
How much would you be willing to pay today for an ordinary annuity that makes equal annual payments of $3,000 each year. You will receive your first payment 7 years from today and you will receive your last payment 32 years from today. The interest rate on this annuity is 4.1%
What is the present value today of a deferred annuity of 10 annual payments of $1,000...
What is the present value today of a deferred annuity of 10 annual payments of $1,000 each, if the first payment will be received 6 years from now and the discount rate is 9% EAR? (Round to the nearest whole dollar)
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...
Find the present value of an annuity in perpetuity that makes payments of $70 at the...
Find the present value of an annuity in perpetuity that makes payments of $70 at the end of year 6, year 12, year 18, year 24, etc. and makes payments of $60 at the end of year 1, year 4, year 7, year 10, etc. and where effective annual interest is i = 7%.
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
Find the present value of a 20-year annuity with annual payments which pays $600 today and...
Find the present value of a 20-year annuity with annual payments which pays $600 today and each subsequent payment is 5% greater than the preceding payment. The annual effective rate of interest is 10.25%. Answer: 7851.19 Please show which equations you used and please do not use excel to answer this question.
Consider an annuity with equal monthly payments of $300 for 5 years, with the first payment...
Consider an annuity with equal monthly payments of $300 for 5 years, with the first payment starting 7 months from now. If the effective annual rate for the first two years (starting today) is 5% and the nominal rate in subsequent years is 6% per annum compounded semi-annually, calculate the future value of this annuity immediately after the last monthly payment.
Phil Dunphy wants to receive a 25-year annuity of $40,000 annual payments. The first $40,000 payment...
Phil Dunphy wants to receive a 25-year annuity of $40,000 annual payments. The first $40,000 payment is exactly one year from today and the last (25th) payment is exactly 25 years from today. The annual interest rate is 7.5% per year. Calculate the Present Value today (t=0) of this annuity.
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...
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: ≥...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT