Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. an annuity can be defined as the difference betwee

An annuity can be defined as the difference between two perpetuities. calculate the present vale of...

60.1K

Verified Solution

Question

Finance

An annuity can be defined as the difference betweentwo perpetuities. calculate the present vale of an annuity thatpays $2,500 per year for 10 years using a dicount rate of 6%. showhow finding the difference between the two perpetuities produce thesame answer as using the annuity formula.

Answer & Explanation Solved by verified expert
3.9 Ratings (673 Votes)
Answer a PV of ordinary annuity PMT 1 1 1 Interest rate Number of Years Interest rate Given PMT 2500 Discount rate 6 Number of years 10 Present value 2500 1 1 1 6 10 6 1840022 Present    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Comprehensive analysis of Wal-Mart and Target, compute the four ratios; current ratio, quick ratio, liabilities to...

Accounting
Q

A typical spinal cord has how many pairs of spinal nerves, and it ends at the...

Medical Sciences
Q

Montaigne was considered a humanist. What do you see in his writing that supports his classification...

Psychology
Q

a boy pulls his 6.35kg sled 5m across a patch of ice where the sled accelerates...

Physics
Q

A small charged particle of mass m and charge q is suspended by an insulated...

Physics
Q

Nestled deep in a particular rainforest, these wooden spheres, called "Free Spirit Spheres," are hung...

Basic Math
Q

Tiffany started a doggie daycare where she offered a variety of services, including grooming. She...

Basic Math
Q

A Find the average value of the function over the indicated interval B Graph the...

Calculus
Q

a calculator to find the value below 75P calculator will display the answer

Calculus
Q

Complete the table by finding the appropriate logarithmic or exponential form of the equation as...

Calculus
Q

Problem 5-24 (Algorithmic) (LO. 1, 4) At the start of the current year, Blue...

Accounting
Q

Name a company that has split its stock over the past 5 years. Explains approximately...

Accounting