HomeworkLib
Question
please show work!!
What is the future value of an annuity of $150 per year (first cash flow occurs one year from today) for 61 years if the inte


What is the present value of an annuity of $500 per year (first cash flow occurs one year from today) for 26 years if the int
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a.Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=150[(1.04)^61-1]/0.04

=150*248.510313

=37276.55(Approx).

b.Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=500[1-(1.11)^-26]/0.11

=500*8.48805826

=4244.03(Approx).

0 0
Add a comment
Know the answer?
Add Answer to:
please show work!! What is the future value of an annuity of $150 per year (first...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • (USLUR 17 .points) What is the present value of an annuity of $500 per year (first...

    (USLUR 17 .points) What is the present value of an annuity of $500 per year (first cash flow occurs one year from today) for 42 years if the interest rate is 14 % p.a.?! (Round your answer to two decimal places and record without a dollar sign and without a comma. Your Answer: Question 18 (3.3 points) What is the future value exactly 19 years from today of a deposit of $3,232 made today into an account that pays interest...

  • What is the future value of an annuity of $150 per year (first cash flow occurs...

    What is the future value of an annuity of $150 per year (first cash flow occurs one year from today) for 56 years if the interest rate is 4 % p.a.?

  • What is the present value of a perpetuity of $ 8,705 per year given an interest...

    What is the present value of a perpetuity of $ 8,705 per year given an interest rate of 7.1%, assuming that the first cash flow occurs today? Round your answer to two decimal places and record without a dollar sign and without commas. Your Answer:

  • What is the present value of an annuity of $5,000 per year, with the first cash...

    What is the present value of an annuity of $5,000 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 8 percent. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

  • What is the value today of an annuity of $5,600 per year, with the first cash...

    What is the value today of an annuity of $5,600 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  • What is the present value of $ 40,563 to be received exactly 31 years from today...

    What is the present value of $ 40,563 to be received exactly 31 years from today if the interest rate is 13 % p.a.? Round your answer to two decimal places and record without a dollar sign and without a comma. Your Answer: Answer

  • please show work!! John Keene recently invested $2,250 in a project that is promising to return 10 percent per yea...

    please show work!! John Keene recently invested $2,250 in a project that is promising to return 10 percent per year. The cash flows are expected to be as follows: WN Year End of Year Cash Flow $588 $553 $573 $?? $583 Note that the cash flow in year 4 is missing. Determine the Year 4 missing cash flow that will make the present value of this series equal to the amount John invested (that is, CFO = -2250)? Round your...

  • please answer both and show work! Calculate the current price of a $5,000 par value bond...

    please answer both and show work! Calculate the current price of a $5,000 par value bond that has a coupon rate of 20 percent, pays coupon interest quarterly (i.e. 4 times per year), has 22 years remaining to maturity, and has a current yield to maturity (discount rate) of 8 percent. (Round your answer to 2 decimal places and record without dollar sign or commas). Calculate the current price of a $1,000 par value bond that has a coupon rate...

  • 1.Future Value: Ordinary Annuity versus Annuity Due What is the future value of a 3%, 5-year...

    1.Future Value: Ordinary Annuity versus Annuity Due What is the future value of a 3%, 5-year ordinary annuity that pays $250 each year? Round your answer to the nearest cent. $   If this were an annuity due, what would its future value be? Round your answer to the nearest cent. $   2. Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the...

  • Question 14 (3.3 points) Assume you are to receive a 10-year annuity with annual payments of...

    Question 14 (3.3 points) Assume you are to receive a 10-year annuity with annual payments of $ 280. The first payment will be received today (that is, at t = 0) and the last payment will be received at the end of Year 9 (that is, at t = 9). You will invest each payment in an account that pays 13 percent. What will be the value in your account at the end of Year 20? (Round your answer to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT