Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Present value (amount needed now to invest to receive annuity) Amount of Payment Time Interest rate annuity expected %24 860 Annually 5 years 7 %

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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Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) (Do not round intermediate calculations. Round
your answer to the nearest cent.)
Present value (amount
needed now to invest to
receive annuity)
Amount of
Payment
Time
Interest rate
annuity expected
%24
860
Annually
5 years
7 %
acer
Transcribed Image Text:Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Present value (amount needed now to invest to receive annuity) Amount of Payment Time Interest rate annuity expected %24 860 Annually 5 years 7 % acer
TABLE
13-2
Present value of an annuity of $1
Perlod
2%
3%
4%
5%
6%
7%
8%
10%
11%
12%
13%
1.
0.9804
09709
0.9615
09524
0.9434
09346
0.9259
0,9174
0.9091
0.9009
0.8929
0.8850
1.8594
17591 1.7355
0808
1.7833
2.5771
2.
1.9416
1.9135
1.8861
1.8334
17125
1,6901
1.6681
3.
2.8839
2.8286
2.7751
2.7232
2.6730
2.6243
2.5313
2.4869
2.4437 2.4018 2.3612
3.8077
3.7171
3.6299
3.5459
3.4651
3.3872
3.3121 32397 3.1699 3.1024 3.0373
2.9745
4.5797
4.4518
4.3295
3.8897 37908
3.6959 3.6048
4.2305 4.1114
4.8684 4.7122 4.5638
4.7134
4.2124
4.1002 3.9927
3.5172
9.
5.6014
5.4172
5.2421
5.0757
4.9173
4.7665
4.485943553
3.9975
7.
6.4720
6.2303
6.0021
5.7864
5.5824
5.3893
5.2064
5.0330
4.4226
8.
7.3255
7.0197
6.7327
6.4632
6.2098
5.97 13 5.7466
55348 5.3349 5.1461
4.9676
4.7988
6.
8.1622
7.7861
7.4353
7.1078
6.8017
6.5152 6.2469
5.9952 5.7590 5.5370
6.4177 6.1446 5.8892 5. 6502 54262
6.8052 6.4951 6.2065 5.9377
7.1607 6.8137 6.4924
7.4869 7.1034 6.7499
5.3282
5.1317
10
8.9826
8.5302
8.1109
77217
7.3601
7.0236
6.7101
11
9.7868
9.2526
8.7605
8.3064
7.8869
7.4987
7.1390
5.6869
12
10.5753
9.9540
9.3851
8.8632
8.3838
7.9427
7.5361
6.1944
5.9176
13
11.3483
10.6350
9.9856
9.3936
8.8527
8.3576
7.9038
6.4235
6.1218
14
12.1062
11.2961
10.5631
9.8986
9.2950
8.7455 8.2442
77862 7.3667 6.9819 66282
6.3025
15
12.8492
11.9379
11.1184 10.3796
9.7122 9.1079
8.5595
8.0607 7.6061 7.1909 6.8109
8.3126 7.8237
64624
16
13.5777
12.5611
11.6523
10.8378
10.1059
9.4466
8.8514
7.3792 6.9740
6.6039
17
14.2918
13.1661
12.1657 112741
10.4773
9.7632 9.1216
8.5436 8.0216 7.5488 7.1196
10.0591 9.37 19 8.7556 8.2014 7.7016 7.2497
6.7291
18
14.9920
13.7535
12.6593 11.6896
13.1339 12.0853 11.1581
10.8276
6.8399
19
15.6784
14.3238
10.3356
9.6036
8.9501 8.3649 7.8393 7.3658
6.9380
20
16.3514
14.8775
13.5903
12.4622 11.4699
10.5940
9.1285 8.5136
7.9633 7.4694
7.0248
10.6748 9.8226 9.0770 8.4217 7.8431 7.3300
25
19.5234
17.4131
15.6221
14.0939
12.7834 11.6536
30
22.3964
19.6004
17.2920
15.3724 137648
12.4090
11.2578
10.2737 94269
8.6938
8.0552
7.4957
40
27.3554
23.1148
19.7928
17.1591 15.0463
13.3317
11.9246
10.7574 9.7790
8.9511
8.2438 7.6344
50
31.4236
25.7298
21.4822
18.2559 15.7619
13.8007 12.2335
10.9617 9.9148
90417
8.3045
7.6752
4.
5.
Transcribed Image Text:TABLE 13-2 Present value of an annuity of $1 Perlod 2% 3% 4% 5% 6% 7% 8% 10% 11% 12% 13% 1. 0.9804 09709 0.9615 09524 0.9434 09346 0.9259 0,9174 0.9091 0.9009 0.8929 0.8850 1.8594 17591 1.7355 0808 1.7833 2.5771 2. 1.9416 1.9135 1.8861 1.8334 17125 1,6901 1.6681 3. 2.8839 2.8286 2.7751 2.7232 2.6730 2.6243 2.5313 2.4869 2.4437 2.4018 2.3612 3.8077 3.7171 3.6299 3.5459 3.4651 3.3872 3.3121 32397 3.1699 3.1024 3.0373 2.9745 4.5797 4.4518 4.3295 3.8897 37908 3.6959 3.6048 4.2305 4.1114 4.8684 4.7122 4.5638 4.7134 4.2124 4.1002 3.9927 3.5172 9. 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 4.485943553 3.9975 7. 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.4226 8. 7.3255 7.0197 6.7327 6.4632 6.2098 5.97 13 5.7466 55348 5.3349 5.1461 4.9676 4.7988 6. 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 6.4177 6.1446 5.8892 5. 6502 54262 6.8052 6.4951 6.2065 5.9377 7.1607 6.8137 6.4924 7.4869 7.1034 6.7499 5.3282 5.1317 10 8.9826 8.5302 8.1109 77217 7.3601 7.0236 6.7101 11 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 5.6869 12 10.5753 9.9540 9.3851 8.8632 8.3838 7.9427 7.5361 6.1944 5.9176 13 11.3483 10.6350 9.9856 9.3936 8.8527 8.3576 7.9038 6.4235 6.1218 14 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 77862 7.3667 6.9819 66282 6.3025 15 12.8492 11.9379 11.1184 10.3796 9.7122 9.1079 8.5595 8.0607 7.6061 7.1909 6.8109 8.3126 7.8237 64624 16 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 7.3792 6.9740 6.6039 17 14.2918 13.1661 12.1657 112741 10.4773 9.7632 9.1216 8.5436 8.0216 7.5488 7.1196 10.0591 9.37 19 8.7556 8.2014 7.7016 7.2497 6.7291 18 14.9920 13.7535 12.6593 11.6896 13.1339 12.0853 11.1581 10.8276 6.8399 19 15.6784 14.3238 10.3356 9.6036 8.9501 8.3649 7.8393 7.3658 6.9380 20 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.1285 8.5136 7.9633 7.4694 7.0248 10.6748 9.8226 9.0770 8.4217 7.8431 7.3300 25 19.5234 17.4131 15.6221 14.0939 12.7834 11.6536 30 22.3964 19.6004 17.2920 15.3724 137648 12.4090 11.2578 10.2737 94269 8.6938 8.0552 7.4957 40 27.3554 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7790 8.9511 8.2438 7.6344 50 31.4236 25.7298 21.4822 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148 90417 8.3045 7.6752 4. 5.
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