1. Consider an annuity that pays £300 at the end of each year for 10 years. The annual effective interest rate is 6 % p.a. Compute the present value of this cashflow £ Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow Enter an answer correct to 2 decimal places 2. A payment of £40 will be made in 7 years. The annual effective interest rate is 6% p.a. Compute the convexity of this payment Enter an answer correct to 2 decimal places

Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of 4%, compounded quarterly a. find the total number of periods b. find the real interest rate per period c. find the present value (give the formula)

Directions: Determine the kind of annuity used in the following situations. Then, solve the problem. Show complete solutions.  What equal payments at the beginning of each 2 months for 4 years will discharge a debt of P180,000 due now if the interest rate is 18.48% compounded every 2 months? a. Kind of annuity: b. Computation:

Suppose an annuity at 5% compounded semi-annually will pay $5000 at the end of each 6-month period for 7 years with the first payment deferred for 13 years.(a) What is the number of payment periods and the number of deferral periods?(b) What is the interest rate per period?(c) Find the present value of this annuity.

Suppose the interest rate is 6.9 APR with monthly compounding. What is the present value of an annuity that pays $110 every three months for five ​years? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.) Question content area bottom Part 1 The present value of the annuity is ​$    enter your response here.  ​(Round to the nearest​ cent.)

This problem demonstrates the dependence of an annuity's future value on the size of the periodic payment. Suppose a fixed amount will be invested at the end of each year and that the invested funds will earn 5.3% compounded annually. What will be the future value of the investments after 15 years if the periodic investment is: (Do not round intermediate calculations and round your final answers to 2 decimal places.) Investment Future Value a. $2,300 per year $ b. S3, 300 per year $  c. S4, 300 per year $

Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)

1. Find the annual payments for an ordinary annuity and an annuity due for 8 years with a PV of $1,000 and an interest rate of 11%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: J. Find the DVI and a

(a) Compute the present value of an annuity due that pays £2,000 annually, at a rate of 3% p.a. effective, for 20 years. (b) Compute the accumulated value of an annuity immediate that makes semi-annual payments of £500 for 10 years and then it makes annual payments of £1,000 for another 10 years. The annual effective rate is 4%. (c) The annual effective rate is 5%. An annuity is paid continuously at a rate of P pounds per month. Its accumulated value after 10 years is £10,000. Find the monthly payment rate.

Classify the financial problem. Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in 6 years? A.future valueB.amortization    C.sinking fundD.present valueE.ordinary annuity Answer the question. (Round your answer to the nearest cent.)