C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $5,400 each. At the same time, C&H borrowed additional money and agreed to pay it back with a series of four annual payments of $8,100 each. The annual interest rate for both loans is 7%. (PV of $1. FV of $1. PVA of $1, and EVA of $1) Note: Use factor(s) from the tables provided. Round answers to nearest whole dollar. Round "Table Factor" to 4 decimal places. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the correct table to find the present value of these two separate annuities. Note: Round amounts to the nearest dollar. First payment Second payment Third payment Fourth payment Fifth payment Sixth payment First payment Second payment Third payment Fourth payment Number of Periods Number of Periods 1 2 3 4 5 6 1 2 3 4 First Annuity Interest Rate 7% 7% 7% 7% 7% 7% Second Annuity Interest Rate Single Future Payment 7% 7% 7% 7% 5,400 5,400 x 5,400 x 5,400 x 5,400x 5,400 x Single Future Payment S 8,100 x 8,100 x 8,100 x 8,100 x Table Factor W Present Value . Table Factor M Present Value

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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Ab. 132.

C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $5,400 each. At the same
time, C&H borrowed additional money and agreed to pay it back with a series of four annual payments of $8,100 each. The annual
interest rate for both loans is 7%. (PV of $1. FV of $1. PVA of $1, and EVA of $1)
Note: Use factor(s) from the tables provided. Round answers to nearest whole dollar. Round "Table Factor" to 4 decimal places.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Use the correct table to find the present value of these two separate annuities.
Note: Round amounts to the nearest dollar.
First payment
Second payment
Third payment
Fourth payment
Fifth payment
Sixth payment
First payment
Second payment
Third payment
Fourth payment
Number of
Periods
Number of
Periods
Required 1 Required 2
Annuity
First Annuity
Second Annuity
1
Periodic
Cash Flow
2
3
4
5
6
X
1
2
3
4
X
X
First Annuity
Single Future
Payment
Interest Rate
7%
7%
7%
7%
7%
7%
Interest Rate
Second Annuity
P (PV of an
Ordinary
Annuity)
$
7%
7%
7%
7%
Single Future
Payment
$
Complete this question by entering your answers in the tabs below.
5,400 x
5.400 x
5,400 x
5,400 x
5,400 x
5,400 x
Use the correct table to find the present value of these two separate annuities.
Note: Round amounts to the nearest dollar.
X
8,100 x
8,100 x
8,100 x
8,100 x
< Required 1
Table Factor
W Present Value
C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $5,400 each. At the same
time, C&H borrowed additional money and agreed to pay it back with a series of four annual payments of $8,100 each. The annual
interest rate for both loans is 7%. (PV of $1. FV of $1. PVA of $1, and FVA of $1)
Note: Use factor(s) from the tables provided. Round answers to nearest whole dollar. Round "Table Factor" to 4 decimal places.
W Present Value
M
Required 2 >
-
Table Factor M Present Value
m
.
W
W
.
Transcribed Image Text:C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $5,400 each. At the same time, C&H borrowed additional money and agreed to pay it back with a series of four annual payments of $8,100 each. The annual interest rate for both loans is 7%. (PV of $1. FV of $1. PVA of $1, and EVA of $1) Note: Use factor(s) from the tables provided. Round answers to nearest whole dollar. Round "Table Factor" to 4 decimal places. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the correct table to find the present value of these two separate annuities. Note: Round amounts to the nearest dollar. First payment Second payment Third payment Fourth payment Fifth payment Sixth payment First payment Second payment Third payment Fourth payment Number of Periods Number of Periods Required 1 Required 2 Annuity First Annuity Second Annuity 1 Periodic Cash Flow 2 3 4 5 6 X 1 2 3 4 X X First Annuity Single Future Payment Interest Rate 7% 7% 7% 7% 7% 7% Interest Rate Second Annuity P (PV of an Ordinary Annuity) $ 7% 7% 7% 7% Single Future Payment $ Complete this question by entering your answers in the tabs below. 5,400 x 5.400 x 5,400 x 5,400 x 5,400 x 5,400 x Use the correct table to find the present value of these two separate annuities. Note: Round amounts to the nearest dollar. X 8,100 x 8,100 x 8,100 x 8,100 x < Required 1 Table Factor W Present Value C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $5,400 each. At the same time, C&H borrowed additional money and agreed to pay it back with a series of four annual payments of $8,100 each. The annual interest rate for both loans is 7%. (PV of $1. FV of $1. PVA of $1, and FVA of $1) Note: Use factor(s) from the tables provided. Round answers to nearest whole dollar. Round "Table Factor" to 4 decimal places. W Present Value M Required 2 > - Table Factor M Present Value m . W W .
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