At an annual effective rate of interest i = 2%, find the AV of a 22-year annuity immediate with annual payments such that the first payment is 62, and each payment thereafter decreases by 1. Possible Answers A 1227.59 B 1267.25 C 1397.58 D 1407.51 E 1427.59
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At an annual effective rate of interest i = 2%, find the AV of a 22-year
Possible Answers
Given Information:
PMT is 62
Interest rate is 2%
Growth rate is -1%
Number of payments is 22
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- Calculate the future value. Present Value Interest Rate $0.00 8% monthly Payments $500.00 monthly Timing of Payment Years End Future Value 24 ??? a. Determine the annuity type. Ordinary Simple Annuity Ordinary General Annuity O Simple Annuity Due General Annuity Due b. Identify the following pieces of information to be used to calculate the future value of the annuity. Periodic Payment: PMT = Number of Payments per Year: PY = Total Number of Payments: N = Annual Interest Rate: r = = Number of Compoundings per Year: CY = c. Determine the future value of the annuity.Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Annual Payment Rate $4,700 6.0 % 8.0 % 7,700 6,700 10.0 % Show Transcribed Text 1. 2. 3. Annuity Annual Payment Rate Interest Compounded Quarterly Annually Semiannually $ 5,700 Interest Compounded 8.0 % Quarterly 10,700 11.0% Annually 4,700 10.0 % Semiannually Period Invested 5 years 6 years 9 years Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) $ Period Invested 2 years 5 years 3 years Future Value of Annuity 172,892.28 Present Value of AnnuityCalculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1. $3,100 8.0 % Semiannually 9 years $79,500.77 2. 6,100 10.0 % Quarterly 5 years 3. 5,100 12.0 % Annually 6 years
- Future Value of an Annuity Calculate the future value. Present Value Interest Rate $0.00 10% monthly Payments $475.00 monthly Number of Payments per Year: PY= a. Determine the annuity type. O Ordinary Simple Annuity O Ordinary General Annuity O Simple Annuity Due O General Annuity Due b. Identify the following pieces of information to be used to calculate the future value of the annuity. Periodic Payment: PMT Total Number of Payments: N= Annual Interest Rate: r = Number of Compoundings per Year: CY c. Determine the future value of the annuity. Timing of Payment Years End 19 = Future Value ???Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposits. (Round your answer to the nearest cent.) Amount of Deposit Frequency Rate Time m n annually 1% 30 уг $800 Need Help? Read It %24Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12% compounded semi-annually. A P36,785.59 (в) Р 38, 678.15 Р33,567.21 D P15,257.90
