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hello, I am finding it tricky to calculate the exact amounts for annuity, can I have some guidance? thanks in advance 8. Present value of
hello, I am finding it tricky to calculate the exact amounts for annuity, can I have some guidance? thanks in advance
8. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the end of every six months An annuity that pays $500 at the beginning of every six months $1,510.41 An annuity that pays $1,000 at the end of each year $1,752.08 An annuity that pays $1,000 at the beginning of each year $3,245.40 $1,208.33 S (N). If the An ordinary annuity selling at $9,106.07 today promises to make equal payments at the end of each year for the nex annuity's appropriate interest rate (I) remains at 8.00% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $60,000,000, paid in twelve equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won -assuming annual interest rate of 8.00%. Grade It Now Save & Continue Continue without saving Attempts: 2 2 Keep the Highest: 2/3 8. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the end of every six months An annuity that pays $500 at the beginning of every six months An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of $40,694,821.29 $37,680,390.08 An ordinary annuity selling at $9,106.07 today promises to at the end of each year for the next twelve years (N). If the annuity's appropriate interest rate (I) remains at 8.00% du $94,885,632.301 jual annuity payment (PMT) will be $102,476,482.885 You just won the lottery. Congratulations! The jackpot is $6 will be made today. In present value terms, you really won elve equal annual payments. The first payment on the lottery jackpot -assuming annual interest rate of 8.00%. Grade It Now Save & Continue Continue without savingStep by Step Solution
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