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Calculating Annuity Values For each of the following annuities, calculate the present value. Annuity Payment Years Interest Rate $ 1,560 5% 1,280 10 20,000 18 8. 53,200 28 14

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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Question

LO 1
6.
Calculating Annuity Values For each of the following annuities, calculate
the present value.
Annuity Payment
Years
Interest Rate
$ 1,560
1,280
7
5%
10
20,000
18
8.
53,200
28
14

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Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the nearest cent.) Annuity Payment Time Nominal Interest Future Value Payment Frequency Rate (%) Compounded Period (years) of the Annuity $40 every month monthly $ 2960.67
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