1.Compute the present value of an annuity of $503 per year for 18 years, given a discount rate of 8 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. 2. You just won a contest. The prize is a lump sum payment of $31,730 , however, you will not receive this payment for 28 years. Compute the present value of your prize assuming a discount rate of 13 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.
1.Compute the present value of an annuity of $503 per year for 18 years, given a discount rate of 8 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. 2. You just won a contest. The prize is a lump sum payment of $31,730 , however, you will not receive this payment for 28 years. Compute the present value of your prize assuming a discount rate of 13 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.
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.Compute the
Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.
2.
You just won a contest. The prize is a lump sum payment of $31,730 , however, you will not receive this payment for 28 years. Compute the present value of your prize assuming a discount rate of 13 percent per annum.
Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.
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