A. Find the amount and present value of an annuity of 540 payable every end of the month at 7% compounded monthly for 4 years and 5 months.

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
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PART 1 ORDINARY ANNUITY PROBLEMS

A. Find the amount and present value of an annuity of 540 payable every end of the month at 7% compounded monthly for 4 years and 5 months.

B. A TV set is offered for sale for 3,800 down payment and 950 every month for the balance of 2 years. If the interest is to be computed 6% compounded monthly, what is the cash price equivalent of the TV set?

C. Find the cash value of a washing machine that can be bought for 1,500 down payment and 950 a month for 18 months, if money is worth 6% compounded monthly.

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