B. Solve for the following: 13. An annuity contract pays P35,000 quarterly for 16 years. What is the present value of the annuity three months before the first payment if money can earn 13.2% compounded quarterly? 14. If money can earn 12.6% compounded monthly for the next 25 years, what is the economic value today if P4,500 is paid at the end of each month? 15. What is the appropriate price to pay for the contract guaranteeing monthly payments of P7,150 for the next 14 years if you require a rate of return of 6.6% compounded monthly? 16. What must be the size of quarterly payments lasting for 13 years if they have a value of P680,000 when discounted at 11.4% compounded quarterly? IMUT THE SIT ROH LINERIART CUPT
B. Solve for the following: 13. An annuity contract pays P35,000 quarterly for 16 years. What is the present value of the annuity three months before the first payment if money can earn 13.2% compounded quarterly? 14. If money can earn 12.6% compounded monthly for the next 25 years, what is the economic value today if P4,500 is paid at the end of each month? 15. What is the appropriate price to pay for the contract guaranteeing monthly payments of P7,150 for the next 14 years if you require a rate of return of 6.6% compounded monthly? 16. What must be the size of quarterly payments lasting for 13 years if they have a value of P680,000 when discounted at 11.4% compounded quarterly? IMUT THE SIT ROH LINERIART CUPT
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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Please help me answer Questions 14 & 16. :(
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B. Solve for the following:
13. An annuity contract pays P35,000 quarterly for 16 years. What is the present value of the
annuity three months before the first payment if money can earn 13.2% compounded
quarterly?
14. If money can earn 12.6% compounded monthly for the next 25 years, what is the
economic value today if P4,500 is paid at the end of each month?
15. What is the appropriate price to pay for the contract guaranteeing monthly payments of
P7,150 for the next 14 years if you require a rate of return of 6.6% compounded monthly?
16. What must be the size of quarterly payments lasting for 13 years if they have a value of
P680,000 when discounted at 11.4% compounded quarterly?
Page 163
Chapter 4: Ordinary Simple Annuity
MALLINERIARI CUF
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