Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $6,200 under each of the following situations: Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. The payments are received at the end of each of the five years and interest is compounded annually. 2. The payments are received at the beginning of each of the five years and interest is compounded annually. 3. The payments are received at the end of each of the five years and interest is compounded quarterly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 The payments are received at the end of each of the five years and interest is compounded quarterly. Note: Round your final answers to nearest whole dollar amount. Deposit Date Required 3 First payment Second payment Third payment Fourth payment Fifth payment n= $ Deposit 6,200 6,200 6,200 6,200 6,200 $ PV 0

Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $6,200 under each of the following situations: Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. The payments are received at the end of each of the five years and interest is compounded annually. 2. The payments are received at the beginning of each of the five years and interest is compounded annually. 3. The payments are received at the end of each of the five years and interest is compounded quarterly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 The payments are received at the end of each of the five years and interest is compounded quarterly. Note: Round your final answers to nearest whole dollar amount. Deposit Date Required 3 First payment Second payment Third payment Fourth payment Fifth payment n= $ Deposit 6,200 6,200 6,200 6,200 6,200 $ PV 0

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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Similar questions

Find the future value of an ordinary annuity of $700 paid at the end of each year for 4 years, if interest is earned at a rate of 6%, compounded annual. The future value is $ (Round to 2 decimal places.)
Consider these two annuities. Annuity 1: $150 invested at the end of each 6 months for 20 years at 4.6%, compounded semi-annually. Annuity 2: $300 invested at the end of each year for 20 years at 4.6%, compounded annually. a) Calculate the total deposit, earned interest, and amount for Annuity 1. b) Calculate the total deposit, earned interest, and amount for Annuity 2. c) Which annuity earns more interest? Explain why.
Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $170 deposited monthly for 20 years at 3% per year in an account containing $11,000 at the start Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $90,000 in a fund paying 6% per year, with monthly payments for 5 years
A 6-year term insurance policy has an annual premium of $500, and at the end of 6 years, all payments and interest are refunded. What lump-sum deposit is necessary to equal this amount if you assume an interest rate of 2.5% compounded annually? (a) State the type. future value present value of an annuity sinking fund amortization ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.) $
Present Value of an Annuity Determine the present value of $110,000 to be received at the end of each of four years, using an interest rate of 5%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.
What is the present value of an annuity of $6,000 to be received at the beginning of each of the next eight periods assuming an interest rate of 10%?
An annuity-immediate has 28 payments of $200 per period. The effective rate of interest per period is 6% for the first 12 periods and 3% for the following 16 periods. (A) Find the accumulated value of the annuity. Round your answer to 2 decimal places. (B) Find the present value of the annuity. Round your answer to 2 decimal places.
The compounding periods and the payment periods are the same for an annuity and for an amortization. Determine the present value of the annuity that will pay the given periodic payments. (Round your final answer to two decimal places.) Periodic payments of $2400 annually for 13 years. The interest is 4% compounded annually.
Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $500 deposited annually at 5.4% for 8 years
For the following ordinary annuity, determine the size of the periodic payment. Present Future Value Value Payment Period $4,400.00 1 quarter Term of Annuity Interest Rate 16 years, 3 months Conversion Period 8.3% quarterly The periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Instructions: Show COMPLETE solution/proof with correct answer. All elements should be included and drawn correctly and; all elements should be labeled with reference and value.
Find the future value and the present value of an annuity of 3500 payable atbthe end of each month for three years of the interest rate is (a) 5% compounded annually, and (b) 5% compounded quarterly.

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