A 7-year annuity of fourteen $5,800 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. The discount rate is 8 percent compounded monthly. What is the value of this annuity five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value three years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the current value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) а. с.
A 7-year annuity of fourteen $5,800 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. The discount rate is 8 percent compounded monthly. What is the value of this annuity five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value three years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the current value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) а. с.
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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![A 7-year annuity of fourteen $5,800 semiannual payments will begin 9 years from now,
with the first payment coming 9.5 years from now. The discount rate is 8 percent
compounded monthly.
What is the value of this annuity five years from now? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is the value three years from now? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
What is the current value of the annuity? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
а.
с.
Value at Year 5
$
39,773.97 X
a.
b.
Value at Year 3
$
33,998.96 X
Value today
2$
26,869.87 X
с.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35965c83-49a0-4a61-abb5-b01d5b731ec3%2Fd30ff411-1fa1-4ac5-8548-23ce35c310eb%2F5e6niae_processed.png&w=3840&q=75)
Transcribed Image Text:A 7-year annuity of fourteen $5,800 semiannual payments will begin 9 years from now,
with the first payment coming 9.5 years from now. The discount rate is 8 percent
compounded monthly.
What is the value of this annuity five years from now? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is the value three years from now? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
What is the current value of the annuity? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
а.
с.
Value at Year 5
$
39,773.97 X
a.
b.
Value at Year 3
$
33,998.96 X
Value today
2$
26,869.87 X
с.
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