Mr Jones is to receive a deferred annuity of £2500 which starts at the end of the third year from now and continues for a period of 12 years from its start. Calculate the present value of this deferred annuity on the basis of a discount rate of 7% per annum. Show all your working.
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can you do the next part of the question please
- A company needs to buy an annuity package that will provide a future income to an individual over a 33- year period at the following levels: £5155 paid at the end of each year for the first 17 years followed by £6757 paid at the end of each year until the end of year 33 (inclusive). Calculate in £s, to 2 decimal places, the price of this package in order to assure the required payments, given that the rate of interest during this period is: 7.8% pa effective for the first 6 years, followed by 3.2% pa effective up until year 27 (inclusive) and then 6.7% pa effective thereafter.A company needs to buy an annuity package that will provide a future income to an individual over a 33-year period at the following levels: £4421 paid at the beginning of each year for the first 13 years followed by £3318 paid at the beginning of each year up until year 33 (inclusive). Calculate in £s, to 2 decimal places, the price of this investment in order to assure the required payments, given that the rate of interest during this period is: 4.0% pa effective for the first 20 years and then 7.1% pa effective thereafter. (no tables, only formulas, please)Question: Assume that Kathy is to make annual investments of P600,000 for three years. The interest for this investment was pegged at 12%. The investment is made at the beginning of each year. What is the future value of this annuity due?
- Someone needs to buy an annuity package that will provide a future income to an individual over a 42-year period at the following levels: £3452 paid at the beginning of each year for the first 10 years followed by £3384 paid at the beginning of each year up until year 42 (inclusive). Calculate, the price of this investment in order to assure the required payments, given that the rate of interest during this period is: 4.4% pa effective for the first 20 years and then 8.7% pa effective thereafter correct answer = 61939.72, NO TABLES, ONLY FORMULAS, PLEASEProvide manual solutions to below mentioned problems. An engineer is entitled to receive P25,000 at the beginning of each year for 18 years. If the rate of interest is 4% compounded annually. 1. What is the present value of this annuity at the time he is supposed to receive the first payment?2. What is the sum of this annuity at the end of the 18th year?3. Find the difference between the sum of this annuity which is paid at the beginning of each year and an annuity paid at the end of each year. Answer. 1. P329,141.72 2. P666,780.73 3. P25,645.41a) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of the annuity. Show your work in detail.
- Kenneth decides to put away an amount of R400,00 for 15 years, at the end of every month, towards a retirement annuity that earns interest at 10% per year, compounded monthly. Determine the present value of the annuity?Suppose that an individual invests $2,500 at the end of each of the next 6 years and earns an annual interest rate of 8%. Calculate the present value of this series of annuity payments B)Suppose that an individual invests $2,500 at the beginning of each of the next 6 years and earns an annual interest rate of 8%. Calculate the value of this series of annuity payments. How does this result compare with the solution to Part A?Assume you are to receive a 5-year annuity with annual payments of £1,000. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 5. You will invest each payment in an account that pays 9% compounded annually. Although the annuity payments stop at the end of year 5, you will not withdraw any money from the account until 10 years from today, and the account will continue to earn 9% for the entire 10-year period. What will be the value in your account at the end of Year 10 (rounded to the nearest pound)?a. £9,208b. £10,037c. £16,560d. None of the above
- (a) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of the annuity. Show your work in detail. (b) If you deposit $140 instead of $135.29 under the same circumstances how much more will your annuity be worth? Show your work in detail.b) If you can earn 12 percent on your investments, and you would like to accumulate $120,000 for your newborn child's education at the end of 18 years, how much must you invest annually to reach your goal? FV. - PMT (1+1)-1) FVn FV of annuity at the end of nth period. PMT= annuity payment deposited or received at the end of each period i = interest rate per period n = number of periods for which annuity will last1) Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%; a) What should be the present value of this annuity? b) If you are given the first payment immediately starting today, what should be the worth of this annuity?