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$ -2,112.62 b. $100 per year for 7 years at 2%. $ 647.20 c. $500 per year for 7 years at 0%. $ 3,500 d. Rework previous parts assuming they are annuities due. Present value of $200 per year for 14 years at 4%: $ Present value of $100 per year for 7 years at 2%: $ Present value of $500 per year for 7 years at 0%: $

$ -2,112.62 b. $100 per year for 7 years at 2%. $ 647.20 c. $500 per year for 7 years at 0%. $ 3,500 d. Rework previous parts assuming they are annuities due. Present value of $200 per year for 14 years at 4%: $ Present value of $100 per year for 7 years at 2%: $ Present value of $500 per year for 7 years at 0%: $

Essentials Of Investments
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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Please solve part d in this practice problem 

7. Problem 5.15 (Present Value of an Annuity) eBook Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $200 per year for 14 years at 4%. $ -2,112.62 b. $100 per year for 7 years at 2%. $ 647.20 c. $500 per year for 7 years at 0%. $ 3,500 d. Rework previous parts assuming they are annuities due. Present value of $200 per year for 14 years at 4%: $ Present value of $100 per year for 7 years at 2%: $ Present value of $500 per year for 7 years at 0%: $
Transcribed Image Text:7. Problem 5.15 (Present Value of an Annuity) eBook Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $200 per year for 14 years at 4%. $ -2,112.62 b. $100 per year for 7 years at 2%. $ 647.20 c. $500 per year for 7 years at 0%. $ 3,500 d. Rework previous parts assuming they are annuities due. Present value of $200 per year for 14 years at 4%: $ Present value of $100 per year for 7 years at 2%: $ Present value of $500 per year for 7 years at 0%: $
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Step 1: Define=annuity due

In annuity payments are made at the beginning of the period and in ordinary annuity payments are at the end of the period,

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