FREE Trial

A deferred annuity consists of an ordinary annuity paying $2500 semiannually for a 12-year term after a 6- year...

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

 

Transcribed Image Text:

A deferred annuity consists of an ordinary annuity paying $2500 semiannually for a 12-year term after a 6- year period of deferral. Calculate the deferred annuity's present value using a discount rate of 4.5% compounded quarterly. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value 2$

Expert Answer:

Answer rating: 100% (QA)

Deferred Annuity P Ordinary 1 1 r n 1 r t r where P Ordin View the full answer


answer-question
Related Book For  answer-question
Accounting What the Numbers Mean

Accounting What the Numbers Mean

ISBN: 978-0078025297

10th edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: April 09, 2020 21:19:03
See More Questions

Related Video

he present value of an annuity is the current value of future payments from an annuity, given a specified rate of return, or discount rate. The higher the discount rate, the lower the present value of the annuity

Students also viewed these finance questions

Q:
What price will a finance company pay to a merchant for a conditional sale contract that requires 18 monthly payments of S331 beginning in five months? The finance company requires a rate of return...
A:
Click to View...
Q:
Marion's grandfather's will established a trust that will pay her $2900 every three months for 11 years. The first payment will be made six years from now, when she turns 19. If money is worth 7.9%...
A:
Calculator Method 1 Calculate 2900 1 1 0 079 44 0 079 1 0 079 38212 97851 2 Calcu......
Q:
Noel has $470,000 with which to purchase an ordinary annuity delivering monthly payments for 20 years after a 10-year period of deferral. What monthly payment will he receive, if the undistributed...
A:
Present value of annuity PVA 470000 time T 20 yrs 10......
Q:
What are fintech risks?
A:
Fintech which stands for financial technology refers to the use of technology to provid......
Q:
Use properties of integrals, together with Exercises 27 and 28, to prove the inequality. 26 + I dx 61. r sin rdx s 8.
A:
61 2 1 2 so f x 1......
Q:
The record of annual rainfall at a place is available for 25 years. Plot the curve of recur- rence interval vs annual rainfall magnitude and by suitable interpolation estimate the magnitude of...
A:
The detailed......
Q:
Starfin Limited invested 1 million in the equity shares in the stock market. The management wants this investment to be measured at amortized cost as this is intended to be held for longterm. Please...
A:
The classification of financial instruments such as equity shares is determined by the company s intention and the business model for managing those f......
Q:
Amoruso Parts Company sells vehicle parts to automotive companies. The Truck Division is organized as a cost center. The budget for the Truck Division for the month ended October 31, 2010, is as...
A:
1 2 The customer service and marketing salaries are significantly over budget The director shoul......
Q:
Given two sequences: x(n) = 28(n) + 38(n 1) - x (n) = 8(n) - 28(n + 2) (a) Find the z-transform of the convolution: [4] X(z) = Z(x(n) * x(n)). (b) Determine the convolution sum using the...
A:
a To find the z transform of the convolution we can use the property that the z transform of the con......
Q:
Some critics argue that having different organizations establish accounting principles is wasteful and inefficient. Instead of mandating accounting standards, each company could voluntarily disclose...
A:
It is not appropriate to abandon mandatory accounting standards and allow each company to voluntarily disclose the type of information it considers im......
Q:
Moist extruded catalyst particles are placed as a packed bed (0.5 m thick, 1 m^2) in a through circulation dryer in which air (density =1.1630 kg/m^3 and viscosity = 18.537 x10^-6 Pa.s) at 300 K and...
A:
Quiz a The drying rate at 0 6 kg water kg wet solid is calculated as follows Constant dry......
Q:
COMPLETE THE INCOME STATEMENT AND BALANCE SHEET The trial balance of The New Decors for the month ended September 30 is as follows: The New Decors Trial Balance September 30, 20- Account Name:...
A:
The complete solution is given below New Decors Work Sheet For month ended September 30 Trial Balanc......
Q:
A company has operating income of $8,558. Tax allocated to operations is $490. What is operating income after taxes?
A:
To calculate the operating income after taxes you sub......
Q:
By using C program, write a program that is used to settle bill payments via online banking and VISA payment. The application must use the C program. Your program must apply modular programming,...
A:
Click to View...
Q:
The permissions on the linux file /etc/shadow is set so that it cannot be read by unprivileged users. Why? When is it best to use a host firewall (e.g. ufw)? When is it best to use a network firewall...
A:
The etc shadow file in Linux contains encrypted password information for user accounts It s crucial......
Q:
Provide 5 examples of functional requirements and 5 examples of non-functional requirements (10 in total) for each of the following systems: - Uber, Twitter or Facebook mobile app (select only 1 and...
A:
Uber Mobile App Functional Requirements User Registration and Authentication The app must allow users to register and authenticate their identity to u......
Q:
The Little Buddy Bench Press Company makes family friendly fitness equipment. They recently received an offer to sell 514 customized kiddo-planks to a Planet Mall Fitness for $24 per kiddo-plank. The...
A:
To calculate the change in profit if the company accepts the offer we need to compare the profit bef......
Q:
Synthesize the products by drawing out reagents and intermediates along the way. `N H. OH HO HO
A:
The detailed mech......
Q:
During a year, Teri's monthly sales compensation ranged between $12,000 and $16,000 per month and units sold ranged between 1,600 and 2,400 units for those same months. Required: Use the high-low...
A:
Monthly sales compensation Total compensation Sales......
Q:
Calculate basic EPS. Ringmeup, Inc., had net income of $111,250 for the year ended December 31, 2013. At the beginning of the year, 40,000 shares of common stock were outstanding. On May 1, an...
A:
January 1 2013 through April 30 2013 40 000 shares 4 mo......
Q:
This problem is based on the 2011 annual report of Campbell Soup Company in the appendix. Find in the Selected Financial Data (also known as the Five-Year Review), or calculate, the following data:...
A:
a Dividends per share declared in 2011 1 145 table p 709 b Capit......
Cyber Attack Prevention Why Your IT Department Must Partner With A Third-Party Cyber Security Firm 1st Edition - ISBN: 1990830250 - Free Book