FINA 3000 TEST 3

an annuity stream of cash flow payment is

a set level cash flows occurring each time period for a fixed length of time

the future value factor for annuities is calculated as

(future value factor - 1)/i

annuities where the payment occurs at the begining of the each period are called ____, whereas ____ refer to annuity where payments occur at the end of the period

annuities due; ordinary annuities

an annuity stream where the payments occur forever is called an

perpetuity

how much are you borrowing if your annual payment for 6 years at 4.5% is 2500

12,894.68

finding PV and END button on calc

you are scheduled to received annual payments of $4,800 for each of the next 7 years. the discount rate is 8%. what is the difference in the future value if you receive these payments at the beginning of each year

3,426.36

(N=7 I=8 PV=0 PMT=4800 FV=-42829.46 END

N=7 I=8 PV=0 PMT=4800 FV= -46255.81 BEGIN

what is the future value of 1200 a year for 30 years at 9% if investment start imediatly

178,290

make sure to put begin on calc

you are considering an annuity which costs $160,000. the annuity pays $18,126 a year over 15 years. what is an annual interest rate promised on this annuity

7.50%

finding i make sure to put END

what is the total present value of $50 received in one year $200 received in 2 years and 800 recevied in 6 yrs if the discount rate is 8%

721.90

50/(1.08)+200/(1.08)²+800/(1.08)³

PMT = 90,000

i=7.5

PERP = PMT/ r = 90,000/.075 = 1,200,000