Find the present value of the following perpetuity. Made Payment At: Period 1 year Perpetuity Payment $4,100 beginning Interest Rate 5.2% Conversion Period semi-annually Find the present value. Do not approximate the answer. The present value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) *****

Find the present value of the following perpetuity. Made Payment At: Period 1 year Perpetuity Payment $4,100 beginning Interest Rate 5.2% Conversion Period semi-annually Find the present value. Do not approximate the answer. The present value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) *****

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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Similar questions

Calculate the value of the annuity due without a table. (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount of Payment payable Interest Value of annuity Years payment rate due 2,100 Annually 5 % acer Σ 3. %24
Complete the ordinary annuity. (Please use the following provided Table.) Note: Do not round intermediate calculations. Amount of payment Payment payable Years Interest rate Value of annuity $ 5,000 Annually 11 4 %
Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream: Number of Payments or Years 10 19 25 80 Annual Interest Rate % (Round to two decimal places.) % (Round to two decimal places.) % (Round to two decimal places.) % (Round to two decimal places.) Future Value $0.00 $12,286.30 $0.00 $1,435,078.21 C Annuity Present Value $580.00 $444.01 $1,985.57 $450.00 $2,298.49 $0.00 $37,000.00 $0.00
If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 8.99% compounded annually, construct a balance sheet showing the interest earned during each year and the balance at the end of each year. Complete the balance sheet. Period Amount Interest Balance 1 $1000.00 2 $1000.00 3 $1000.00 4 $1000.00 $ $4 $1000.00 $4 $ (Round to the nearest cent as needed.)
For each of the following annuities, calculate the annuity payment. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Annuity Payment Future Value $ $ $ $ 25.450 1,090,000 928,000 145,000 Years 8 39 25 14 Interest Rate 4% 6 7
Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Payment $ 183 5,155 75,084 167,932 Years 13 8 5 9 Interest Rate (Annual) 12% 11 13 4 Future Value (Payment made on last day of period) 4 Future Value (Payment made on first day of period)
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
Present Value of an Annuity Determine the present value of $310,000 to be received at the end of each of four years, using an interest rate of 6%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year $fill in the blank 1 Second Year fill in the blank 2 Third Year fill in the blank 3 Fourth Year fill in the blank 4 Total present value $fill in the blank 5 b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.$fill in the blank 6 c. Why is the present value of the four $310,000 cash receipts less than the $1,240,000 to be received in the future?The present value is less due to..........................over the 4 years.
For each of the following annuities, calculate the present value. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value Annuity Payment $ $ $ $ 1,950 1,265 11,455 29,900 Years 7 9 16 24 Interest Rate 8% 7 9 11
Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $800/semiannual period for 15 years at 6%/year compounded semiannually $
Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $1600/semiannual period for 6 years at 3.5%/year compounded semiannually

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