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How do i solve these questions with formulas? The interest rate for the second one is 12%
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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.)What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.
- What is the value today of a 15-year annuity that pays $710 a year? The annuity's first payment occurs six years from today. The annual interest rate is 11 percent for Years 1 through 5, and 13 percent thereafter. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value todayWhat is the present value of an ordinary annuity with annual payments of $670 at 7% annual interest for 25 years? | Click the icon to view the table. The present value of an ordinary annuity is S (Round to the nearest cent as needed.)A perpetuity will pay $736 per year, starting five years after the perpetuity is purchased. (The first payment is precisely 5 years after purchase.) What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 9 % ?
- A perpetuity makes its first annual payment of $110 exactly 17 years from today. The discount rate is 6.1% per annum compounded annually. 1) What is the present value of this perpetuity valued at exactly Year 13? (Round your answer to the nearest cent) 2) What is the present value of this perpetuity valued at exactly Year 0? (Round your answer to the nearest cent)A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 11%?The Time Value of an AnnuityQuestion #2: Suppose you have just started 26th year of your life, you plan to retire atthe end of age 65, and you expect to live until the end of 85 (working for 40 full yearsand being retired for 20 years). You are currently earning $48,000 per year (paidmonthly at the end of each month) which grows 2.4% each year (0.2% per month). Youwant to consume $2,500 per month when you retire with the growth rate of 0.2% permonth. The plan is to save a fixed percentage of your income each month to meet yourretirement needs.Part A: Assuming an interest rate of 3% (annual percentage rate, compounded monthly),what is your saving rate?Part B: Assuming an interest rate of 6% (annual percentage rate, compounded monthly),what is your saving rate?Part C: How can you explain the change in saving rate in response to the change ininterest rate? Discuss.
- you want to establish an annuity that will pay $7,500 for the next twenty years (end year) your financial institution will establish such an annuity if you deposit $104,000 today. what is the implied rate that the institution is paying on this annuity?Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return of 9 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Answer Question 4 Assume that you deposit $3,956 each year for the next 15 years into an account that pays 20 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.Find the future value of the following annuity due. Then determine how much of this value is from contributions and how much is from interest $300 deposited at the beginning of each quarter for 13 years at 8.96% compounded quarterly The account will have a total of Safter 13 years. (Round to the nearest cent as needed.) How much of this is from contributions? $ (Round to the nearest cent as needed.) How much of this is from interest? $ (Round to the nearest cent as needed)