10. Suppose the interest rate is 8% APR with monthly compounding. What is the present value of an annuity that pays $100 every six months for five years?
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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 annuity7. What is the present value of a perpetuity of annual payments where the first payment is in one year and each payment is $4599.99? assume that time zero is now and the effective interest rate per year is 14%.Suppose the interest rate is 8.0% APR with monthly compunding. What is the present value of an annuity that pays $100 every six months for five years? (Be careful not to round any intermediate steps less than six decimal places.)
- Suppose the interest rate is 8.0% APR with monthly compounding. What is the present value of an annuity that pays $100 every six months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.)11. What is the present value of an annuity of 19 annual payments where the first payment is in twelve years and each payment is $1,200? assume that time zero is now and the effective interest rate per year is 14%.5. Consider an annuity where you receive $1,000 payments at the end of each year for the next 20 years. Assume the discount rate is 1.5%. What is the present value of this stream of income payments?
- Explain Step by Step What is the present value of an annuity that pays $X per month for 10 years, where X is 2133 if money is worth 3% compounded monthly?What is the PV of a perpetuity paying $6 each month, beginning next month, if the monthly interest rate is a constant 10% / year? What about if it had an effective interest rate?Suppose the interest rate is 6.9% APR with monthly compounding. What is the present value of an annuity that pays $100 every three months for six years? (Note:Be careful not to round any intermediate steps less than six decimal places.)
- 18. Suppose that you will receive annual payments of $10,000 for a period of 10 years. The first payment will be made four years from now. If the interest rate is 6%, what is the present value of this stream of payments? (Round your answer to the nearest cent.)What is the present value, when interest rates are 10 percent, of a $75 payment made every year forever?What is the present value of $800 per year annuity at an interest rate of 12%? Hint: the future value is zero. This is 5 recurring payments.