3. A series of cash flows consists of 6 annual payments of $5,000 each. a. Are the cash flows an annuity? What are the three characteristics of an annuity? b. Draw the timeline for the cash flows FOUR times and perform the calculation called for using the formulas and solving mathematically. Then write out the variables to input in the financial function of your calculator. The annual rate is 5.50%. ddd CF Timeline Ordinary Annuity - PVA I-----I- [---------------I CF Timeline Ordinary Annuity - FVA I--------------------1-----1-----1 PVA = n= i= PV= FVA = PMT = n= PMT = FV = i= Mode = PV= FV = Mode = CF Timeline Annuity Due = PVA due I------------------------------I PVA = CF Timeline Annuity Due - FVA due I---------------1-----1-----1-----I FVA = n= PMT= n= 1= FV = i= PV= Mode = PV= PMT = FV = Mode =
3. A series of cash flows consists of 6 annual payments of $5,000 each. a. Are the cash flows an annuity? What are the three characteristics of an annuity? b. Draw the timeline for the cash flows FOUR times and perform the calculation called for using the formulas and solving mathematically. Then write out the variables to input in the financial function of your calculator. The annual rate is 5.50%. ddd CF Timeline Ordinary Annuity - PVA I-----I- [---------------I CF Timeline Ordinary Annuity - FVA I--------------------1-----1-----1 PVA = n= i= PV= FVA = PMT = n= PMT = FV = i= Mode = PV= FV = Mode = CF Timeline Annuity Due = PVA due I------------------------------I PVA = CF Timeline Annuity Due - FVA due I---------------1-----1-----1-----I FVA = n= PMT= n= 1= FV = i= PV= Mode = PV= PMT = FV = Mode =
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
Related questions
Question
Please answer all components .of this question there should be 4 seperate calculation if you do so i will 100% give you a thumbs up.
Transcribed Image Text:3. A series of cash flows consists of 6 annual payments of $5,000 each.
a. Are the cash flows an annuity? What are the three characteristics of an annuity?
b. Draw the timeline for the cash flows FOUR times and perform the calculation called
for using the formulas and solving mathematically. Then write out the variables to
input in the financial function of your calculator. The annual rate is 5.50%. ddd
CF Timeline Ordinary Annuity - PVA
I-----I-
[---------------I
CF Timeline Ordinary Annuity - FVA
I--------------------1-----1-----1
PVA =
n=
i=
PV=
FVA =
PMT =
n=
PMT =
FV =
i=
Mode =
PV=
FV =
Mode =
CF Timeline Annuity Due = PVA due
I------------------------------I
PVA =
CF Timeline Annuity Due - FVA due
I---------------1-----1-----1-----I
FVA =
n=
PMT=
n=
1=
FV =
i=
PV=
Mode =
PV=
PMT =
FV =
Mode =
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