1) An Annuity of $1200 paid every quarter for 10 years has a current/present value of $ 32826.58. What is the interest rate? 2) Consider a lump sum of $1500000 paid into an account that generates a 7 year annuity with quarterly payments. With interest rate of 9% how much will the PMT be? 3) Find the FV of a annuity due with a payment of $30 every year for 4 years, Interest rate is 9%.
1) An Annuity of $1200 paid every quarter for 10 years has a current/present value of $ 32826.58. What is the interest rate? 2) Consider a lump sum of $1500000 paid into an account that generates a 7 year annuity with quarterly payments. With interest rate of 9% how much will the PMT be? 3) Find the FV of a annuity due with a payment of $30 every year for 4 years, Interest rate is 9%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1) An
years, Interest rate is 9%.
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