For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor.
For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor.
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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Transcribed Image Text:For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the
interest factor.
1. In a future value of 1 table:
a.
b.
C.
a.
b.
Annual
Rate
C.
10%
8%
8%
Annual
Rate
10%
10%
12%
Number of
Years
Invested
28
Number of Years
Invested
15
7
11
7
2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to O decimal
places, e.g 45.)
17
Number of
Rents
Involved
28
30
Compounded
28
Annually
Quarterly
Semiannually
Frequency of
Rents
Annually
Semiannually
(a) Rate of Interest
Quarterly
%
(a) Rate of Interest
%
%
%
%
(b) Number of Periods
%
(b) Number of Periods
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