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Amount of annuity expected $900 Payment Annually 4 years Time Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Year 1 Year 2 Year 3 Year 4 Opening balance $ 3,118.59 Interest Annuity Closing balance

Amount of annuity expected $900 Payment Annually 4 years Time Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Year 1 Year 2 Year 3 Year 4 Opening balance $ 3,118.59 Interest Annuity Closing balance

Essentials Of Investments
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
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Amount of annuity expected $900 Payment Annually 4 years Time Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Year 1 Year 2 Year 3 Year 4 Opening balance S 3,118.59 ces Interest Annuity Closing balance
Transcribed Image Text:Amount of annuity expected $900 Payment Annually 4 years Time Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Year 1 Year 2 Year 3 Year 4 Opening balance S 3,118.59 ces Interest Annuity Closing balance
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