Amount of annuity expected $900 Opening balance nterest Annuity Closing balance $ heck the correctness of annuity payment by completing the following table. lote: Round the answers the nearest cent. $ Payment Annually $ Year 1 3,118.59 $ 187.12 3,305.71 $ Time 4 years 3,305.71 $ Interest rate 6% Year 2 3,305.71 144.34 3,450.05 $ $ 3,450.05 $ Present value (amount needed now t invest to receive annuity) $3,118.59 Year 3 3,450.05 $ 99.00 3,549.05 $ 3,549.05 $ Year 4 3,549.05 50.94 3,599.99 3,599.99
Amount of annuity expected $900 Opening balance nterest Annuity Closing balance $ heck the correctness of annuity payment by completing the following table. lote: Round the answers the nearest cent. $ Payment Annually $ Year 1 3,118.59 $ 187.12 3,305.71 $ Time 4 years 3,305.71 $ Interest rate 6% Year 2 3,305.71 144.34 3,450.05 $ $ 3,450.05 $ Present value (amount needed now t invest to receive annuity) $3,118.59 Year 3 3,450.05 $ 99.00 3,549.05 $ 3,549.05 $ Year 4 3,549.05 50.94 3,599.99 3,599.99
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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i would like to know the anuity for each year.
Transcribed Image Text:Amount of annuity expected
$900
Opening balance
Interest
Annuity
Closing balance
$
Payment
Annually
Check the correctness of annuity payment by completing the following table.
Note: Round the answers the nearest cent.
$
Year 1
3,118.59 $
187.12
3,305.71 $
Time
4 years
3,305.71 $
Interest rate
6%
Year 2
3,305.71
144.34
3,450.05 $
$
3,450.05 $
Present value (amount needed now to
invest to receive annuity)
$3,118.59
Year 3
3,450.05 $
99.00
3,549.05 $
3,549.05
$
Year 4
3,549.05
50.94
3,599.99
3,599.99
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