Calculate the present value of the following: a-1. Annual payment of $1,100 for 11 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Annual payment of $900 for 16 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-3. Which option would you prefer? b-1. Annual payment of $1,100 for 11 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Annual payment of $900 for 16 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-3. Which option would you prefer? a-1. Present value a-2. Present value a-3. Which option would you prefer? b-1. Present value b-2. Present value b-3. Which option would you prefer?
Calculate the present value of the following: a-1. Annual payment of $1,100 for 11 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Annual payment of $900 for 16 years at 4% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-3. Which option would you prefer? b-1. Annual payment of $1,100 for 11 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Annual payment of $900 for 16 years at 16% interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-3. Which option would you prefer? a-1. Present value a-2. Present value a-3. Which option would you prefer? b-1. Present value b-2. Present value b-3. Which option would you prefer?
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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Transcribed Image Text:Calculate the present value of the following:
a-1. Annual payment of $1,100 for 11 years at 4% interest.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
a-2. Annual payment of $900 for 16 years at 4% interest.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
a-3. Which option would you prefer?
b-1. Annual payment of $1,100 for 11 years at 16% interest.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b-2. Annual payment of $900 for 16 years at 16% interest.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b-3. Which option would you prefer?
a-1. Present value
a-2. Present value
a-3. Which option would you prefer?
b-1. Present value
b-2. Present value
b-3. Which option would you prefer?
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