An investment is expected to result in equal payments of $3160.00 at the end of each of the next 5 years. (ordinary annuity) If the appropriate rate of return (discount rate) is 10%, what is the present value of the annuity stream? (annual compounding)
An investment is expected to result in equal payments of $3160.00 at the end of each of the next 5 years. (ordinary annuity) If the appropriate rate of return (discount rate) is 10%, what is the present value of the annuity stream? (annual compounding)
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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An investment is expected to result in equal payments of $3160.00 at the end of each of the next 5 years. (ordinary
If the appropriate
Transcribed Image Text:What is the present value of a security that will pay $11250 in 18 years if securities
of equal risk pay 5% annually?
(Answer to the nearest cent. i.e. one thousand dollars would be entered 1000.00)
Transcribed Image Text:Find the present value of $500.00 due in 10 years at 8%.
(Answer to the nearest cent. i.e. one thousand dollars would be entered 1000.00)
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