(a) Find the present value of the annuity if it makes ten payments. Present value of annuity = $| 372404.26 (b) Find the present value of the annuity if it makes payments in perpetuity.
(a) Find the present value of the annuity if it makes ten payments. Present value of annuity = $| 372404.26 (b) Find the present value of the annuity if it makes payments in perpetuity.
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 help me with this and provide the working. thank you
![An annuity makes annual payments of $43,000, starting now, from an account paying 3.35 % interest
per year, compounded annually.
Round your answers to two decimal places.
(a) Find the present value of the annuity if it makes ten payments.
Present value of annuity = $ 372404.26
(b) Find the present value of the annuity if it makes payments in perpetuity.
Present value of annuity
$
i
1433333.33](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd48c5e92-2f81-4167-9482-a41adc44600f%2Fbf0a5526-7fd0-4e3e-9748-5f4ad2fd00f7%2Fkyoim5d_processed.png&w=3840&q=75)
Transcribed Image Text:An annuity makes annual payments of $43,000, starting now, from an account paying 3.35 % interest
per year, compounded annually.
Round your answers to two decimal places.
(a) Find the present value of the annuity if it makes ten payments.
Present value of annuity = $ 372404.26
(b) Find the present value of the annuity if it makes payments in perpetuity.
Present value of annuity
$
i
1433333.33
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