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 %
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
Problem 1PS
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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
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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