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An investment is expected to result in equal payments of $300 at the end of each of the next 8 years (ordinary annuity). If the appropriate required rate of return (discount rate) is 4 %, what is the future value of the annuity stream? (annual compounding) $6,547.36 $2,403.36 $410.57 $2,764.27

An investment is expected to result in equal payments of $300 at the end of each of the next 8 years (ordinary annuity). If the appropriate required rate of return (discount rate) is 4 %, what is the future value of the annuity stream? (annual compounding) $6,547.36 $2,403.36 $410.57 $2,764.27

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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An investment is expected to result in equal payments of $300 at the end of each of the next 8 years (ordinary annuity). If the appropriate required rate of return (discount rate) is 4 %, what is the future value of the annuity stream? (annual compounding) $6,547.36 $2,403.36 $410.57 O $2,764.27
Transcribed Image Text:An investment is expected to result in equal payments of $300 at the end of each of the next 8 years (ordinary annuity). If the appropriate required rate of return (discount rate) is 4 %, what is the future value of the annuity stream? (annual compounding) $6,547.36 $2,403.36 $410.57 O $2,764.27
A 9.0%, 5-year ordinary annuity pays $270.00 each year. What is the future value of the annuity? (Answer to the nearest cent. i.e. one thousand dollars would be entered 1000.00)
Transcribed Image Text:A 9.0%, 5-year ordinary annuity pays $270.00 each year. What is the future value of the annuity? (Answer to the nearest cent. i.e. one thousand dollars would be entered 1000.00)
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