Computing Present Value of Annuity Payments Under Different Assumptions Compute the present value of the annuity stream for each of the four separate investment scenarios that follow. Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .633333%). Round final answer to the nearest whole dollar. Do not use a negative sign with your answer. Investment 1 Investment 2 Investment 3 Investment 4 Annual interest rate 7% 6% 5% 8% Investment period in years 5 6 5 10 Compounding periods Quarterly Annually Semiannually Monthly Payment per compounding period $10,000 $36,000 $20,000 $2,000 First payment Beg. of period End of period End of period Beg. of period Present Value Answer Answer Answer Answer
Computing Present Value of Annuity Payments Under Different Assumptions Compute the present value of the annuity stream for each of the four separate investment scenarios that follow. Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .633333%). Round final answer to the nearest whole dollar. Do not use a negative sign with your answer. Investment 1 Investment 2 Investment 3 Investment 4 Annual interest rate 7% 6% 5% 8% Investment period in years 5 6 5 10 Compounding periods Quarterly Annually Semiannually Monthly Payment per compounding period $10,000 $36,000 $20,000 $2,000 First payment Beg. of period End of period End of period Beg. of period Present Value Answer Answer Answer Answer
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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Computing
Compute the present value of the annuity stream for each of the four separate investment scenarios that follow.
- Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .633333%).
- Round final answer to the nearest whole dollar.
- Do not use a negative sign with your answer.
| Investment 1 | Investment 2 | Investment 3 | Investment 4 | |
|---|---|---|---|---|
| Annual interest rate | 7% | 6% | 5% | 8% |
| Investment period in years | 5 | 6 | 5 | 10 |
| Compounding periods | Quarterly | Annually | Semiannually | Monthly |
| Payment per compounding period | $10,000 | $36,000 | $20,000 | $2,000 |
| First payment | Beg. of period | End of period | End of period | Beg. of period |
| Present Value | Answer | Answer | Answer | Answer |
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