An annuity pays according to the following scheme: at time 5 the annuity pays 2020, at time 6 the annuity pays 2018, at time 7 the annuity pays 2016, at time 14 the annuity pays 2002, at time 15 the arkhuity pays 2000, at time 16 the annuity pays 2005, at time 17 the annuity pays 2010, at time 18 the annuity pays 2015, at time 64 the annuity pays 2245, at time 65 the annuity pays 2250, at time 66 the annuity pays 2250, at time 67 the annuity pays 2250, ... After time 67 the payments remain constant forever at 2250. The effective interest rate per period is i until time 15, and it is j afterwards. (a) Write a time diagram corresponding to the decomposed payments. (b) Find an expression for the value at time 0 for this annuity. Express your answer in terms of annuity symbols.

An annuity pays according to the following scheme: at time 5 the annuity pays 2020, at time 6 the annuity pays 2018, at time 7 the annuity pays 2016, at time 14 the annuity pays 2002, at time 15 the arkhuity pays 2000, at time 16 the annuity pays 2005, at time 17 the annuity pays 2010, at time 18 the annuity pays 2015, at time 64 the annuity pays 2245, at time 65 the annuity pays 2250, at time 66 the annuity pays 2250, at time 67 the annuity pays 2250, ... After time 67 the payments remain constant forever at 2250. The effective interest rate per period is i until time 15, and it is j afterwards. (a) Write a time diagram corresponding to the decomposed payments. (b) Find an expression for the value at time 0 for this annuity. Express your answer in terms of annuity symbols.

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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Use the following Annuity Table for questions 1 through 6. Future Value of Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 11.000001.000001.000001.000001.00000 22.050002.060002.080002.100002.12000 33.152503.183603.246403.310003.37440 44.310134.374624.506114.641004.77933 55.525635.637095.866606.105106.35285 66.801916.975327.335927.715618.11519 78.142018.393848.922809.4871710.08901 89.549119.8974710.6366311.4358912.29969 911.0265611.4913212.4875613.5794814.77566 1012.5778913.1807914.4865615.9374317.54874 Present Value of an Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 1.95238.94340.92593.90909.89286 21.859411.833391.783261.735541.69005 32.723252.673012.577102.486852.40183 43.545953.465113.312133.169863.03735 54.329484.212363.992713.790793.60478 65.075694.917324.622884.355264.11141 75.786375.582385.206374.868424.56376 86.463216.209795.746645.334934.96764 97.107826.801696.246895.759025.32825 107.721737.360096.710086.144575.65022 Use the following…
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A perpetuity makes its first annual payment of $110 exactly 17 years from today. The discount rate is 6.1% per annum compounded annually. 1) What is the present value of this perpetuity valued at exactly Year 13? (Round your answer to the nearest cent) 2) What is the present value of this perpetuity valued at exactly Year 0? (Round your answer to the nearest cent)
What amount must be invested to receive $47000 for 17 years, if the first $47000 is received today and the rate is 10% ? Periods Present Value of Ordinary Annuity at 10% 16 7.82371 17 8.02155 18 8.20141
A perpetuity paying $3, 000 at the beginning of each two years has the same present value as another perpetuity with level payments, this one having payments at the end of each three years. Express the level payment amount of the second perpetuity, P, as a function of the annual effective interest rate i.
Due and Perpetuity The value of perpetuity per year is P 10,000.00 and the annuity is P 5,000.00,what is the rate of interest?
Considering the Annuity Formula: In Western countries a client who intend to buy a house apply for an annuity1 housing loan attheir bank. After the pay-out of the debt amount the client pays a constant (annual) amount(interest and repayment of debt) to the bank for e.g. 25 years. The client is owner of thehouse and owes money to the bank, after 25 years (s)he is free of debt and still owns thehouse. Islamic law generally prohibits a charge of interest so that Islamic banks offer the followingIslamic housing “loan contract” (called “Islamic loan”):1. The house is bought by the bank in t = 0 so that she is owner of the house.2. The client pays a periodic rent to the bank for a defined period of 25 years.3. After 25 years the bank donates the house to the client (“for free”) if the rent wasregularly paid (without any outstanding payments). Question 1: Please specify all possible parameters (i.e. variables) on an Islamic loan contract so thatan Islamic bank can calculate the conditions of…
Use the table below to answer the following questions: Present Value of an Annuity of 1 Future Value of an Annuity of 1 Period 4% 5% 8% 10% 4% 5% 8% 10% 4 3.6299 3.5460 3.3121 3.1699 4.2465 4.3101 4.5061 4.6410 5 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 6 5.2421 5.0757 4.6229 4.3553 6.6330 6.8019 7.3359 7.7156 7 6.0021 5.7864 5.2064 4.8684 7.8983 8.1420 8.9228 9.4872 8 6.7327 6.4632 5.7466 5.3349 9.2142 9.5491 10.6366 11.4359 9 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 10 8.1109 7.7217 6.7101 6.1446 12.0061 12.5779 14.4866 15.9374 11 8.7605 8.3064 7.1390 6.4951 13.4864 14.2068 16.6455 18.5312 Bobby gets a yearly alimony payment from his ex-wife and wants to save enough to put a 15% down payment on a home in 4 years. Median homes go for $950,000 and are expected to appreciate at the inflation rate of 3%. How much should Bobby put away into an investment each year if he can get a 8% return a year?…
Subject - account Please help me. Thankyou.
if you deposit $190, $250, and $300 in a savings account at the end of the years 2017, 2018, and 2019 respectively how much money will be there in the account at the end of 2019 if you earn an interest of 5.3% per year on your savings?
A perpetuity, starting January 1, 2015 pays 1 every January 1 in every common year and 2 on January 1 of every leap year. The interest rate on every common year is I and that of every leap year is j. Find the value of the perpetuity on January 1 2010.

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