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Effective date of a decreasing annuity: 1/1/01. Date of first payment: 4/1/01. Frequency of payments: Quarterly. Number of payments: 40 Quarterly decrease in payment: $300. Interest rate: 8% per year, compounded quarterly. Present value of remaining payments as of 1/1/06 (after 1/1/06 payment is made): $50,000. In what range is the first quarterly payment: A)11,700 B)5700 C)11,800 D)5800 E)11,900

Effective date of a decreasing annuity: 1/1/01. Date of first payment: 4/1/01. Frequency of payments: Quarterly. Number of payments: 40 Quarterly decrease in payment: $300. Interest rate: 8% per year, compounded quarterly. Present value of remaining payments as of 1/1/06 (after 1/1/06 payment is made): $50,000. In what range is the first quarterly payment: A)11,700 B)5700 C)11,800 D)5800 E)11,900

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
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Effective date of a decreasing annuity: 1/1/01. Date of first payment: 4/1/01. Frequency of payments: Quarterly. Number of payments: 40 Quarterly decrease in payment: $300. Interest rate: 8% per year, compounded quarterly. Present value of remaining payments as of 1/1/06 (after 1/1/06 payment is made): $50,000. In what range is the first quarterly payment: A)11,700 B)5700 C)11,800 D)5800 E)11,900
Transcribed Image Text:Effective date of a decreasing annuity: 1/1/01. Date of first payment: 4/1/01. Frequency of payments: Quarterly. Number of payments: 40 Quarterly decrease in payment: $300. Interest rate: 8% per year, compounded quarterly. Present value of remaining payments as of 1/1/06 (after 1/1/06 payment is made): $50,000. In what range is the first quarterly payment: A)11,700 B)5700 C)11,800 D)5800 E)11,900
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