3. The present value at j12 of a $10,000 payment today, followed by 32 monthly payments of $5000 is $136,335.69. What is the present value of 33 monthly payments of $2000, first payment made today, if these payments earn the same interest rate, j12?
3. The present value at j12 of a $10,000 payment today, followed by 32 monthly payments of $5000 is $136,335.69. What is the present value of 33 monthly payments of $2000, first payment made today, if these payments earn the same interest rate, j12?
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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Please dont reject the question if you dont understand or have the calculator.
The correct answer is $52,534.28. I dont understand how to get the interest
![Mylab Module 4 Answer Guidelines
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V
USE BA II PLUS Calculator explain all inputs for P/Y, C/Y, N, PV, PMT
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The last paymom won e got mer cot.
3. The present value at j12 of a $10,000 payment today, followed by 32 monthly payments of
$5000 is $136,335.69. What is the present value of 33 monthly payments of $2000, first payment
made today, if these payments earn the same interest rate, j12?
You are given: 136,335.69 = 10,000+ future value of an ordinary annuity of 5000 with 32
payments. Here r is not known. So, find a32]r from the above formula. Now, do the second part.
Find the present value of an annuity due of a payment of 2000 for 33 monthly payments.
Substitute that a32]r value here.
<
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STEPS
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FOLLOW THESE](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9301140a-fc60-4ea9-8b56-38cf7229b6d5%2F50115e48-a778-4fc9-be2d-6af05d3883ee%2F1s2f7xk_processed.png&w=3840&q=75)
Transcribed Image Text:Mylab Module 4 Answer Guidelines
a↑↓
V
USE BA II PLUS Calculator explain all inputs for P/Y, C/Y, N, PV, PMT
- + Automatic Zoom
1 of 3
The last paymom won e got mer cot.
3. The present value at j12 of a $10,000 payment today, followed by 32 monthly payments of
$5000 is $136,335.69. What is the present value of 33 monthly payments of $2000, first payment
made today, if these payments earn the same interest rate, j12?
You are given: 136,335.69 = 10,000+ future value of an ordinary annuity of 5000 with 32
payments. Here r is not known. So, find a32]r from the above formula. Now, do the second part.
Find the present value of an annuity due of a payment of 2000 for 33 monthly payments.
Substitute that a32]r value here.
<
>
STEPS
>>
FOLLOW THESE
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