Question

What is the future value of the following annuity? # of periods = 10 Interest rate = 5.25% Compounding times per period = 12 Cash flow (PMT) = 1000 Growth Rate = 3% # of payments per period = 12 This is an annuity due

Answer #1

(a) What is the future value of the following unequal cash flows
using 9% interest rate?
YEAR
1
2
3
4
5
CASH FLOW
$600
$800
$500
$400
$900
(b) What would be an annuity payment (PMT) that would give the
same future value
using the same interest rate and same
number of years?
(c) What is the present value of the following unequal cash
flows using
7.5% interest rate?
YEAR
1
2
3
4
CASH FLOW
$950 ...

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 $

For any discount rate, the future value of an ordinary annuity
factor for n periods is equal to the future value of an annuity due
factor for n minus 1 periods plus 1.

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?

How does the future value, ordinary annuity, compounding
periods and rate of return affect the discounted present value,
respectively, if other things remain unchanged?

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

Future Value of an Annuity for Various Compounding Periods Find
the future values of the following ordinary annuities. FV of $200
each 6 months for 4 years at a nominal rate of 8%, compounded
semiannually. Do not round intermediate calculations.
Round your answer to the nearest cent. $ 2127.33 **incorrect**
why is this wrong?
FV of $100 each 3 months for 4 years at a nominal rate of 8%,
compounded quarterly. Do not round intermediate calculations. Round
your answer to...

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.)

An annuity-due has 29 payments of $800 per period. The effective
rate of interest per period is 7% for the first 9 periods and 3%
for the following 20 periods.
(A) Find the accumulated value of the annuity using the portfolio
method. Round your answer to 2 decimal places.
(B) Find the accumulated value of the annuity using the yield-curve
method. Round your answer to 2 decimal places.

11. What is the present value of a 10-year annuity with annual
payments of 50 and an interest rate of 5?
a. Do this
with your calculator, indicating what number you put in each
button.
b. Do this
in Excel, using the annuity formula.
12. What is
the present value of a cash flow of 1000 being paid in 10 years
with an interest rate of 5%?
13. What is
the sum of the calculations in (11) and (12)? What...

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