Suppose withdrawals of 10,000 every year starting at time 8 will be made and will go on forever. How much is the value of this annuity at time 0 if the effective rate is 10%?
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- How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?Suppose you are going to receive $5,000 per year for 8 years. The appropriate interest rate is 10 percent. What is the present value of the payments if they are in the form of an ordinary, a. anhuity? b. What is the present value if the payments are an annuity due?Suppose you are going to receive $10,000 per year for 5 years. The appropriate interest rate is 11%. What is the present value of the payments if they are in the form of an ordinary annuity?
- Suppose you are going to receive Rs. 63,800 per year for five years. The appropriate interest rate is 7.3 What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due? Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? What if the payments are an annuity due? Which has the highest present value, the ordinary annuity or annuity due? Which has the highest future value? Will this always be true? Note- Answer all the parts of the questionSuppose you will receive a payment of $80000 in 5 years at a rate of 3% lasting 10 years. Find the present value of the annuity. Only type answer and give answer fastSuppose you are going to receive $13,500 per year for five years. The interest rate is 8.4%a. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?b. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? What if the payments are annuity due?c. Which has the highest present value (future value), the ordinary annuity or annuity due?
- Suppose that you will receive annual payments of $16,500 for a period of 10 years. The first payment will be made 6 years from now. If the interest rate is 7%, what is the present value of this stream of payments?Suppose you're going to receive $7800 per year for five years. the appropriate discount rate is 7.5%. A.What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due? B. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? What if the payments are in annuity due? C. Which has the higher present value, the ordinary annuity or the annuity due? Which has a higher future value? Will this always be true?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.
- Suppose you are going to receive $13,000 per year for 7 years. The appropriate interest rate is 8 percent. a.What is the present value of the payments if they are in the form of an ordinary annuity? b.What is the present value if the payments are an annuity due? c.Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an ordinary annuity? d.Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an annuity due?What is the value today of a money machine that will pay $1,507.00 per year for 10.00 years? Assume the first payment is made today and that there are 10.0 total payments. The interest rate is 7.00%.What would be the maximum price you should pay for a 10 year annuity that will provide payments of $800 a year? Assume the appropriate interest rate for this type of investment is 7%. Please break down