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Posts Tagged ‘ordinary’

Why do payments come out lower with monthly compounding when using the ordinary annuity formula?

08 Jun

It seems counter-intuitive, but when I try to solve for monthly payments on this problem, the payments are lower for the annuity that is compounded monthly.
Problem:
A debt of $25,000 is to be amortized over 7 years at an annual interest rate of 7%. Calculate the value of monthly payments (a) if interest is compounded once a year, and (b) if interest is compounded monthly.

I get $386.57 as the monthly payment for the annually compounded debt and $377.32 for the monthly payments for the debt compounded monthly.

 
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what is the future value of a 5year ordinary annuity that promises to pay $300 each year. Interest rate 7%?

06 Jun

No I won’t be spending the money. What value after 5 years

 
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Help Please!!!Find the future value of the ordinary annuity?

04 Jun

(Round to the nearest cent) $130 monthly payment, 5.5 %interest, 1 year
I have no clue how to do this and any help would be appreciated:)

 
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What monthly payment is needed to make an ordinary annuity obtain $200,000 in 30 years at 9.75% interest?

29 May

What monthly payment is needed to make an ordinary annuity obtain $200,000 in 30 years at 9.75% interest?

 
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the future value of ordinary annuity ; 8% interest compounded semi-annually for 11 years.?

27 May

sorry R=3700

 
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Find the future value of the ordinary annuity.?

17 May

Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.

R = $900. i = 8% interest compounded semiannually for 8 years.

A. $18,021.23
B. $19,280.50
C. $19,642.08
D. $42,142.08

 
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What is the future value of an ordinary annuity of $23,000 per year, for three years, at 10% interest compound?

15 May

“DAILY”

 
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What is the future value of a 5-year ordinary annuity that promises to pay you $300 each year?

11 May

The rate of interest is 7 percent.

 
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find the present value of the ordinary annuity for payment of $490 made annually for 13yrs at 6% compound annu

09 May
 
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Finding present value of an ordinary annuity…?

08 May

Finding present value of an investment…?
For the following investment plan, how much must be invested today at 6.25% pa, compounded monthly, if the first payment is made a month from today? The investment plan is: 10 monthly payments of $900.

Textbook answer says $8747.47, but I need to know the steps, thanks.
Using PVA=R[[1-(1+i)^-n]/i] (R is payment..)

 
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What is the future value of an annual ordinary annuity of $2,000 for twenty years at 6% annual interest?

07 May
 
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How can I find the future value of this ordinary annuity?

05 May

R= 4600
8.73 interest compounded quarterly for 6 years.
( I know quarterly is 4)

 
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finding the present value of ordinary annuity?

05 May

1) at the time of his son birth ,a man invest a certain sum of money 8% compounded quarterly to provide payments of 6000 each for four years. the first payment to be on his son’s 20th birthday.how much does the father invest?
2) on his 45th birthday a man buys an annuity from an insurance co.which credits interest at 0.09 m=4 the annuity will provide 15 yrs of 3000monly payments to himself or his wife ,and its term will begin on his 50th b-day.what single payment does he make on his 45th b-day?

 
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Please help me find the present value of the ordinary annuity. ?

03 May

$500 per year for five years at the rate of 7% annually.
$500 per year for five years at the rate of 7% compounded annually.
$500 per year for five years at the rate of 7% compounded annually.

 
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What is the present value of an ordinary 12 year annuity that pays $1000 per year when the interest rate is?

02 May

$7,942.70
$7,576.30
$7,500
$7,761.20

 
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