A 5-year annuity of ten $6,200 semiannual payments will begin 9 years from now, with the first...
Question:
A 5-year annuity of ten $6,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
If the discount rate is 9 percent compounded monthly, what is the value of this annuity five years from now? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) AND If the discount rate is 9 percent compounded monthly, what is the value three years from now? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Please show how you got the answer!!
Present Value of an Annuity:
An annuity is a series of annual cash flows that occur for a number of years. The cash flows are equal in annuity. Present value of annuity is the value of all the cash flows at the current date discounted at the given rate of return.
Answer and Explanation: 1
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View this answera. The value of annuity five years from now is $34,130.05
b. The value of annuity 3 years from now is $28,526.96
- Payment per semi annual period =...
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How to Calculate the Present Value of an Annuity
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Chapter 8 / Lesson 3
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Learn how to find present value of annuity using the formula and see its derivation. Study its examples and see a difference between Ordinary Annuity and Annuity Due.
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