1. Consider an annuity that pays £100 at the end of each year for 9 years. The annual effective interest rate is 5% p.a. Compute the present value of this cashflow £ Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow Enter an answer correct to 2 decimal places 2. A payment of £30 will be made in 10 years. The annual effective interest rate is 3% p.a. Compute the convexity of this payment Enter an answer correct to 2 decimal places

Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)

This problem demonstrates the dependence of an annuity's future value on the size of the periodic payment. Suppose a fixed amount will be invested at the end of each year and that the invested funds will earn 5.3% compounded annually. What will be the future value of the investments after 15 years if the periodic investment is: (Do not round intermediate calculations and round your final answers to 2 decimal places.) Investment Future Value a. $2,300 per year $ b. S3, 300 per year $  c. S4, 300 per year $

Find the present value of an annuity stream in which the first payment of $268 is received 8 years from today, and thereafter 8 additional payments are paid to you each year. The size of the annuity payments will decrease in size in each year (i.e. g < 0), at an annual rate of g = -4.5%. Use an annual discount rate of 3.1%.

Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return of 9 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.       Answer   Question 4             Assume that you deposit $3,956 each year for the next 15 years into an account that pays 20 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.

Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) PV = $ $300 per month for 10 years, if the account earns 2% per year and if there is to be $10,000 left in the annuity at the end of the 10 years X Need Help? Read It Watch It

Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R = $4000, 10% interest compounded annually for 20 years What is the future value of the ordinary annuity? $ (Round to the nearest cent.)

What is the future value (at the end of 10 years) of an annuity that pays $700 a quarter over 10 years with the payments invested at 6.6% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78) Answer:

What is the future value (at the end of 8 years) of an annuity that pays $700 a quarter over 8 years with the payments invested at 9.3% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78) Answer: Check

The present value of an annuity is payable for 4 years, with the first payment at the end of 10 years is P 21,264. If money is worth 4.69%, what is the value of annuity?  Solve correctly without using Excel .