Calculating Present Values) A5- year annuity of ten $7,000 semiannual payments will begin 8 years from now, with the first payment coming 8.5 years from now. If the discount rate is 10 percent compounded monthly, what is the value of this annuity five years from now? What is the value three years from now? What is the current value of the annuity?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityWhat’s the present value of a perpetuity that pays $1,000 per year beginning1 year from now, if the appropriate interest rate is 5%? What would the valuebe if payments on the annuity began immediately? ($20,000, $21,000.Hint: Just add the $1,000 to be received immediately to the value of theannuity.)Can you show calculations for this? A five-year annuity of 10 $7,500 semiannual payments will begin 10 years from now, with the first payment coming 10.5 years from now. If the discount rate is 6 percent compounded monthly, what is the value of this annuity five years from now? What is the value three years from now? What is the current value of the annuity?
- Suppose that an annuity will provide for 20 annual payments of 1400 dollars, with the first payment coming 11 years from now. If the nominal rate of interest is 8.6 percent convertible monthly, what is the present value of the annuity? -0 Answer= dollars.A 10-year annuity of twenty $10,000 semiannual payments will begin 12 years from now, with the first payment coming 12.5 years from now. a.If the discount rate is 8 percent compounded monthly, what is the value of this annuity 8 years from now? b.What is the current value of the annuity?A 10-year annuity of twenty $11,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. a. If the discount rate is 14 percent compounded monthly, what is the value of this annuity 4 years from now? Value at Year 4 b. What is the current value of the annuity? Value today
- What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6 percent ? Answer: Future Value of Annuity is $8749.23 Qusetion: What is the future value of the same annuity due?A one-year annuity that pays $100 semi-annually will starts its payment in 6 months from now. APR is 8 percent compounded semi-annually. a. What is the present value of the annuity? b. What is the effective annual rate? c. Now consider another one-year annuity that makes a “single” payment in a year from now. How much should it pay to the investor if it is equally valuable to the previous annuity?Calculate the present value of a four-period annuity of $200 per year that begins twoyears from today if the discount rate is 9%?
- What is the future value of a $1000 annuity due over 12 years at an interest rate of 12%? (TVM)A 15-year annuity of thirty $10,000 semiannual payments will begin 12 years from now, with the first payment coming 12.5 years from now. a. If the discount rate is 12 percent compounded monthly, what is the value of this annuity 8 years from now? Value at Year 12 b. What is the current value of the annuity? Value todayA 15-year annuity of thirty $10,000 semiannual payments will begin 11 years from now, with the first payment coming 11.5 years from now. A. if the discount rate is 10 percent compounded monthly, what is the value of this annuity 8 years from now? B. What is the current value of the annuity?