Consider a 12-year annuity that pays $5,000 per year. What is the PV of this annuity...

Question

Question

Consider a 12-year annuity that pays $5,000 per year. What is the PV of this annuity if interest rates are 8%?

Round your answer to 4 decimal places, for example 100.1234.

business finance

Answer 1

Answer #1

Answer 2

Similar Homework Help Questions

An annuity pays $ 11.00$11.00 per year for 105105 years. What is the present value (PV)...

An annuity pays $ 11.00$11.00 per year for 105105 years. What is the present value (PV) of this annuity given that the discount rate is 8 %8%? A. $ 82.48$82.48 B. $ 164.95$164.95 C. $ 137.46$137.46 D. $ 192.44$192.44
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))
#19. An annuity pays $14.00 per year for 99 years. What is the present value (PV) of...

#19. An annuity pays $14.00 per year for 99 years. What is the present value (PV) of this annuity given that the discount rate is 6%?

An annuity pays $11.00 per year for 103 years. What is the present value (PV) of...

An annuity pays $11.00 per year for 103 years. What is the present value (PV) of this annuity given that the discount rate is 5%? O A. $262.26 O B. $218.55 O c. $305.97 OD. $131.13
What is the present value of a 11-year annuity of $5,000 per period in which payments...

What is the present value of a 11-year annuity of $5,000 per period in which payments come at the beginning of each period? The interest rate is 14 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table value. (Do not round intermediate calculations. Round your final...
a) What is the future value of a 5-year ordinary annuity with annual payments of $273,...

a) What is the future value of a 5-year ordinary annuity with annual payments of $273, evaluated at a 7 percent interest rate? (Do not include the dollar sign ($), and round your answer to 2 decimal places: for example, 536.34) b) What is the present value of a 8-year ordinary annuity with annual payments of $584, evaluated at a 8 percent interest rate? Round your answer to 2 decimal places; for example 2345.25.

An annuity pays $500 per year for 12 years beginning one year from today. What is the remaining value of the annuity imm...

An annuity pays $500 per year for 12 years beginning one year from today. What is the remaining value of the annuity immediately before the sixth $500 payment? Assume an interest rate of 2% APR. How would you do this with a financial calculator or excel? Thank you!
Consider the following. a. What is the duration of a two-year bond that pays an annual...

Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 11 percent and whose current yield to maturity is 12 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) b. What is the expected change in the price of the bond if interest rates are expected to decrease by 0.2 percent? (Negative amount should be indicated by a minus sign....
Consider the following. a. What is the duration of a two-year bond that pays an annual...

Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 12 percent and whose current yield to maturity is 13 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) b. What is the expected change in the price of the bond if interest rates are expected to increase by 0.6 percent? (Negative amount should be indicated by a minus sign....

(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...