3OFind the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to thenearest cent.a. $400 per year for 16 years at 6%.$2,790.13b. $200 per year for 8 years at 3%.$1,768.79c. $900 per year for 8 years at 0%.7,200d. Rework parts a, b, and c assuming they are annuities due.Future value of $400 per year for 16 years at 6%: $Future value of $200 per year for 8 years at 3%: $Future value of $900 per year for 8 years at 0%: $$2,962.291,852.247,200

Details are provided below.Explanation:aFuture value of ordinary annuity is = P*((1+r)^n-1)/r "P" is…

Answered: 3 O Find the future values of these…

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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Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $500 per year for 8 years at 14%. $ $250 per year for 4 years at 7%. $ $200 per year for 4 years at 0%. $ Rework parts a, b, and c assuming they are annuities due. Future value of $500 per year for 8 years at 14%: $ Future value of $250 per year for 4 years at 7%: $ Future value of $200 per year for 4 years at 0%: $
Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $800 per year for 14 years at 6%. $ b. $400 per year for 7 years at 3%. $ c. $300 per year for 7 years at 0%. $ d. Rework previous parts assuming they are annuities due. Present value of $800 per year for 14 years at 6%: $ Present value of $400 per year for 7 years at 3%: $ Present value of $300 per year for 7 years at 0%: $
Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. $300 per year for 2 years at 6%. $150 per year for 1 year at 3%. $200 per year for 6 years at 0%.
Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent. A. $900 per year for 4 years at 6%. B. $450 per year for 2 years at 3%. C. $800 per year for 2 years at 0%. Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. D. $900 per year for 4 years at 6%. E. $450 per year for 2 years at 3%. F. $800 per year for 2 years at 0%.
Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $800 per year for 16 years at 12%. $ b. $400 per year for $ c. $500 per year for $ years at 6%. years at 0%. d. Rework previous parts assuming they are annuities due. Present value of $800 per year for 16 years at 12%: $ Present value of $400 per year for 8 years at 6%: $ Present value of $500 per year for 8 years at 0%: $
Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $700 per year for 12 years at 10%. $ 2. $350 per year for 6 years at 5%. $ 3. $400 per year for 6 years at 0%. $ d. Rework previous parts assuming they are annuities due. Present value of $700 per year for 12 years at 10%: $ Present value of $350 per year for 6 years at 5%: $ Present value of $400 per year for 6 years at 0%: $
Find the future values of the following ordinary annuities. FV of $600 each 6 months for 4 years at a nominal rate of 8%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ FV of $300 each 3 months for 4 years at a nominal rate of 8%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ The annuities described in parts a and b have the same amount of money paid into them during the 4-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 4 years. Why does this occur
Find the future values of the following ordinary annuities: a. FV of $500 paid each 6 months for 5 years at a nominal rate of 6% compounded semiannually. Do not round Intermediate calculations. Round your answer to the nearest cent. $ b. FV of $250 paid each 3 months for 5 years at a nominal rate of 6% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? -Select-
Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $300 per year for 14 years at 8%. $ $150 per year for 7 years at 4%. $ $1,000 per year for 7 years at 0%. $ Rework previous parts assuming they are annuities due. Present value of $300 per year for 14 years at 8%: $ Present value of $150 per year for 7 years at 4%: $
Find the future values of the following ordinary annuities: a. FV of $500 paid each 6 months for 5 years at a nominal rate of 11% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. FV of $250 paid each 3 months for 5 years at a nominal rate of 11% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur?
ind the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $700 per year for 10 years at 8%. $ $350 per year for 5 years at 4%. $ $800 per year for 10 years at 0%. $ Rework previous parts assuming they are annuities due. Present value of $700 per year for 10 years at 8%: $ Present value of $350 per year for 5 years at 4%: $ Present value of $800 per year for 10 years at 0%: $

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