At an annual effective interest rate of 5%, an annuity immediate with 4N level annual payments of 1000 has a present value of 14,898.13. Determine the fraction of the total present value represented by the first set of N payments and the third set of N payments combined. A. 0.579 B. 0.585 C. 0.614 D. 0.643 E. 0.672

At an annual effective interest rate of 5%, an annuity immediate with 4N level annual payments of 1000 has a present value of 14,898.13. Determine the fraction of the total present value represented by the first set of N payments and the third set of N payments combined. A. 0.579 B. 0.585 C. 0.614 D. 0.643 E. 0.672

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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What is the PV of an ordinary annuity with 5 payments of $3,900 if the appropriate interest rate is 4.9%? a. $20,455.50 b. $19,858.66 c. $16,931.74 d. $17,761.39 e. $13,861.39
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Given an effective interest rate of 6%, what is the present value of an annuity that pays $1 at time 1, $2 at time 2, $3 at time 3, ... for 265 periods (that is, the last payment is $265 at time 265)?
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Future value interest factor of an ordinary annuity of $1 per period at i% for n periods, FVIFA(i,n). Period 5.0% 5.5% 6.0% 1.0% 1.0000 1.5% 1.0000 2.0% 1.0000 1 1.0000 1.0000 1.0000 1.0000 1.0000 2 2.0050 2.0100 2.0150 2.0200 2.0250 2.0300 2.0350 1.0000 2.0400 3.1216 3 3.0150 3.0301 3.0452 3.0756 3.0909 3.1062 4 4.0301 3.0604 4.1216 5.2040 4.1525 4.1836 4.2149 4.2465 5 4.0604 4.0909 5.1010 5.1523 6.1520 6.2296 6.3081 5.0503 5.2563 5.3091 5.3625 5.4163 6 6.0755 6.3877 6.4684 6.5502 6.6330 7 7.1059 7.5474 7.6625 7.7794 7.4343 8.4328 8.5830 8 8.1414 9 10 11 12 13 14 15 16 17 18 19 6.5% 7.0% 7.5% 9.0% 8.5% 0.0% 0.5% 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0450 2.0500 2.0550 2.0600 2.0650 2.0700 2.0750 2.0800 2.0850 2.0900 2.0950 3.1370 3.1525 3.1680 3.1836 3.1992 3.2149 3.2306 3.2464 3.2622 3.2781 3.2940 4.2782 4.3101 4.3423 4.3746 4.4072 4.4399 4.4729 4.5061 4.5395 4.5731 4.6070 5.4707 5.5256 5.5811 5.6371 5.6936 5.7507 5.8084 5.8666 5.9254 5.9847 6.0446…
1. The present value of an annuity of P5,000 to be received at the end of each of the next six months for 6 years at a 4% annual rate would be? a. P3,950 b. P26,210 c. P52,875 d. None of the above 2. What is the value of P 100 perpetuity if interest is 7%? a. P 1,429 b. P12,321 c. P 21,350 d. None of the above

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