At an effective annual interest rate i, the present value of S10 per year, payable at the beginning of each year for ten years, is $67.60. At the same interest rate, the accumulated value at the end of ten years of a single payment now of $10 is $25.94. In which of the following ranges is this accumulated value (still at this same interest rate) at the end of twenty years of $10 per year, payable at the end of each year? Selected Answer: > $600 but < $650 < $550 Answers: 2 $550 but < $600 > $600 but < $650

At an effective annual interest rate i, the present value of S10 per year, payable at the beginning of each year for ten years, is $67.60. At the same interest rate, the accumulated value at the end of ten years of a single payment now of $10 is $25.94. In which of the following ranges is this accumulated value (still at this same interest rate) at the end of twenty years of $10 per year, payable at the end of each year? Selected Answer: > $600 but < $650 < $550 Answers: 2 $550 but < $600 > $600 but < $650

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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Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Present value of $800 per year for 10 years at 14%: $ Present value of $400 per year for 5 years at 7%: $ Present value of $800 per year for 5 years at 0%: $
With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of payments of $400 made on December 31 each year for the next 3 years starting in 2021? The present value on December 31, 2020 of payments of $400 on December 31 each year for the next 3 years starting in 2021 is $ d (answer to 1 decimal place).
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FOLLOWING QUESTIONS: 1. Consider that the number of periods and the amount of equal installment every year is the same with the given yet the prevailing market interest rate is 10%, how much would be the present value at 01/01/2020? A.973,684 B.1,088,815 C.1,217,105 D. 1,241,910 2. How much is the interest expense on December 31, 2020? A. 91,121 B. 108,143 C. 123,342 D. 136,913 3. How much is the interest expense on December 31, 2021? A. 108,143 B. 123,342 C. 136,913 D. 250,000 4. How much is the Present value at December 31, 2022? A. 600,459 B. 759,339 C. 901,195 D. 1,027,853 5. How many periods or equal installments to pay the Note Payable? A. 5 B. 6 C. 7 D. 8 6. How much is the annual installments? A. 200,000 B. 225,000 C. 250,000 D. 260,000 7. On 12/31/2020, the CURRENT PORTION of the Note Payable would be? A. 113,087 B. 126,658 C. 141,857 D. 158,879 PLEASE PROVIDE SOLUTIONS EVERY ANSWERS. THANK YOU!
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