Everything is the same as in Question 5, but the annuity you buy has COLA's of 2% per annum. (Thatis, the payments increase every year by 2%). What is the initial value of the income you receive fromthe annuity on 1st January 2050? Select an answer and submit. For keyboard navigation, use theup/down arrow keys to select an answer. a $97,929.30 b $97,929.31 c $97,929.32 d $97,929.33

To determine the initial value of the income you receive from the annuity with a cost-of-living…

Answered: Everything is the same as in Question…

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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a. What is the present value of a 3-year annuity of $110 if the discount rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Suppose the interest rate is 6.9 APR with monthly compounding. What is the present value of an annuity that pays $110 every three months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.) Question content area bottom Part 1 The present value of the annuity is $ enter your response here. (Round to the nearest cent.)
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Find the present value of a 4-year $60 annuity when the stated rate is 6%, compounded monthly. Make sure you use the lump sum approach. Be very specific as to what each step involves. Then, explain how your answer would have changed if you had been told these payments were payments ‘due’ and why. Write full sentences out please in addition to calculations.
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This is question 4 from section 6.3 from my homework, please help and thanks!
Use a calculator to evaluate an ordinary annuity formula nt 1 +I 1 A = m %3D for m, r, and t (respectively). Assume monthly payments. (Round your answer to the nearest cent.) $100; 6%; 10 yr A = $ Need Help? Read It
For each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Annuity Payment $ 2,000 $ 1,280 $ 11,580 30,150 69 $ Years 7 17 25 Interest Rate 9 % 8 10 12
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Problems Saved Help Save You have just borrowed $250,000 to buy a condo. You will repay the loan in equal monthly payments of $2,011.56 over the next 30 years. a. What monthly interest rate are you paying on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the APR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What is the effective annual rate on that loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) d. What rate is the lender more likely to quote on the loan? a. Monthly interest rate APR b. C. Effective annual rate d. What rate is the lender more likely to quote on the loan? Prev 3 of 12 Next > earch IN W
Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity $5,000 Interest rate 6% Deposit period (years) 7 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due is preferable as an investment? Explain why.
Every year you deposit $3,500 into an account that earns 19% interest per year, What will be the balance of your account immediately after the 40th deposit? Click the icon to view the interest and annuity table for discrete compounding when / 1% per year. Choose the correct answer below. O A. $165,837 O B. $123,795 OC. $171,102 OD. $172,813 OE. $140,000

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