Brief Exercise C-12 (Algo) Calculate the present value of an annuity (LOC-5) Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The scholarship will pay $14,000 each year for the next four years to reimburse normal school-related expenditures. Each $14,000 payment will be made at the end of the year, contingent on Tatsuo maintaining good grades in his classes for that year. Assuming an annual interest rate of 9.0%, determine the value today of receiving this scholarship if Tatsuo maintains good grades. (EV of $1. PV of $1. EVA of $1. and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.) Present value of annuity
Brief Exercise C-12 (Algo) Calculate the present value of an annuity (LOC-5) Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The scholarship will pay $14,000 each year for the next four years to reimburse normal school-related expenditures. Each $14,000 payment will be made at the end of the year, contingent on Tatsuo maintaining good grades in his classes for that year. Assuming an annual interest rate of 9.0%, determine the value today of receiving this scholarship if Tatsuo maintains good grades. (EV of $1. PV of $1. EVA of $1. and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.) Present value of annuity
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
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Transcribed Image Text:Brief Exercise C-12 (Algo) Calculate the present value of an annuity (LOC-5)
Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The scholarship will pay $14,000 each year
for the next four years to reimburse normal school-related expenditures. Each $14,000 payment will be made at the end of the year,
contingent on Tatsuo maintaining good grades in his classes for that year. Assuming an annual interest rate of 9.0%, determine the
value today of receiving this scholarship if Tatsuo maintains good grades. (EV of $1. PV of $1. EVA of $1. and PVA of $1) (Use tables,
Excel, or a financial calculator. Round your answer to 2 decimal places.)
Present value of annuity
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