8. An annuity of $5,000 payable every 3 months for 5 years is deferred for 2 years. If money is worth 8% compounded quarterly, find the annuity value: a) beginning of the 3rd year; b) at present; c) end of the 7th year; d) end of the 8th year; e) end of the 4th year. Money is worth 8% compounded quarterly.
8. An annuity of $5,000 payable every 3 months for 5 years is deferred for 2 years. If money is worth 8% compounded quarterly, find the annuity value: a) beginning of the 3rd year; b) at present; c) end of the 7th year; d) end of the 8th year; e) end of the 4th year. Money is worth 8% compounded quarterly.
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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Transcribed Image Text:8. An annuity of $5,000 payable every 3 months for 5 years is deferred for 2 years.
If money is worth 8% compounded quarterly, find the annuity value:
a) beginning of the 3rd year;
b) at present;
c) end of the 7th year;
d) end of the 8th year;
e) end of the 4th year. Money is worth 8% compounded quarterly.
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