A 20-year annuity pays $1,800 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 percent compounded monthly thereafter, what is the present value of the annuity?

answer

watching

246

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Casey DurganLv2

28 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

A 15-year annuity pays $1,500 per month, and payments are made atthe end of each month. The interest rate is 11 percent compoundedmonthly for the first seven years, and 7 percent compounded monthlythereafter.

What is the present value of the annuity?

I got PV at 0 years = $87,604.36 and PV at 7 years = $110,021.35.I'm not sure if I just add these numbers together or how I get thefinal answer

pucewallaby691

Two annuities have the same present value. The first annuity is a decreasing annual annuity. The first payment is $1050 and is due one year from today. Subsequent annual payments decreased by $150 per year. The second annuity provides payments of $X per month for 7 years. The first payment is due one month from today. the interest rate for both annuities is 6% compounded monthly. Calculate X.

What is the relationship between discounting and compounding?

What is the relationship between the present-value factor and the annuity present-value factor?

What will $5,000 invested for 10 years at 8 percent compounded annually grow to? How many years will it take $400 to grow to $1,671 if it is invested at 10 percent compounded annually? At what rate would $1,000 have to be invested to grow to $4,046 in 10 years?

Calculate the future sum of $1,000, given that it will be held in the bank for 5 years and earn 10 percent compounded semiannually.

What is an annuity due? How does this differ from an ordinary annuity?

What is the present value of an ordinary annuity of $1,000 per year for 7 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?

What is the future value of an ordinary annuity of $1,000 per year for 7 years compounded at 10%? What would be the future value if it were an annuity due?

You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments?

What is the present value of a $1,000 perpetuity discounted back to the present at 8 percent?

What is the present value of a $1,000 annuity for 10 years, with the first payment occurring at the end of year 10 (that is, ten $1,000 payments occurring at the end of year 10 through 19), given a discount rate of 10 percent?

Given a 10 percent discount rate, what is the present value of an perpetuity of $1,000 per year if the first payment does not begin until the end of year 10?

Weekly leaderboard

Home

Homework Help 3,900,000

Finance 370,000