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Determine the value of the perpetuity
annual amount $20,000
discount rate 8%
Step by step
Solved in 3 steps
- 7. Present Value of a Perpetuity Determine the present value of each of the following perpetuities. Part Annual CF Interest Rate A $34,000 B $90,000 C $6,000 D $60,000 8% 10% 6% 5%Calculate the amount of money deposited into an account as a perpetuity if it is used for $2300 wilthdrawals to be made al the end of every quarter when money arms 4% p.a. compounding semi-annually Celect one: O a 117300 O b. 115000 O c 230000 O d. 2323002. Consider the data in the following table: Perpetuity Annual amount discount rateA 100,000 10B 3,000 6 Determine the present value of each perpetuity.
- What endowment is required to establish a perpetuity with an ongoing cost of $6,000 atthe end of each month if interest is 6.0% compounded annually in perpetuity?A. $1,325,562.62B. $1,232,652.72C. $1,365,256,24D. $1,562,897.26From Ordinary Annuities; Calculate parts A, B & C assuming they are Annuities Due. A.$600 per year for 12 years at 8% B.$300 per year for 6 years at 4% C.$500 per year for 6 years at 0%Complete the ordinary annuity. Amount of payment = $12,100 Payment Payable = Semiannually Years = 9 Interest Rate = 6%
- What is the value of the annuity? $ 7,500 semiannually 12%Find the present value of the ordinary annuity: Payments of $450 made annually for 13 years at 6% compounded annually. a. $ 4182.75 b. $ 3772.71 c. $3982.28 d. $ 3983.71Determine the present worth of annuity consisting of 6 payments of 120,000 each payment are made at the beginning of each year. Money is worth to 15% compounded annually. What is the presenr worth value? A. 521,258.61 B. 520,258.61 C. 523,258.61
- II. Table Completion. Find the indicated value from the following ordinary annuity. Write your answer on the table. i Соmpounded Semiannually Quarterly Monthly Annually Quarterly Monthly Annually Semiannually Quarterly Monthly An R J 5 years 2,000 3, 578 7, 500 10% 11% 21 months 9% 15 months 10 years 3 years 60 months 970. 50 5% 10, 288.29 1.25% 0.25% 226, 263.49 53, 279. 32 6. 7% 4 8. 7, 136.39 8.5% 42 months 9. 10, 000 9 years 4% 10 9, 032. 70 1% 30 1234507K Find the present value of the following perpetuity. Made At: end Perpetuity Payment $190 Payment Period 1 month Interest Rate 7.8% Conversion Period annually ETT The present value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)Find the present value of the following perpetuity. Made At: beginning Perpetuity Payment $380 Payment Period 1 month Interest Rate 9.9% Conversion Period annually Find the present value. Do not approximate the answer. The present value is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)