For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (= interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value $ 20,762 212,615 377,440 660,000 170,000 Annuity Amount $ 5,200 70,000 50,000 101,616 39,939 j= 8% 12.0% 11% 10.0% 10% n= 5 4 17 11 4
For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (= interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value $ 20,762 212,615 377,440 660,000 170,000 Annuity Amount $ 5,200 70,000 50,000 101,616 39,939 j= 8% 12.0% 11% 10.0% 10% n= 5 4 17 11 4
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 situations involving annuities, solve for the unknown. Assume that
interest is compounded annually and that all annuity amounts are received at the end of
each period. (i = interest rate, and n = number of years)
Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest
whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
1.
2.
3.
4.
5.
Present Value
$
Annuity Amount
20,762 $
212,615
377,440
660,000
170,000
5,200
70,000
50,000
101,616
39,939
j=
8%
12.0%
11%
10.0%
10%
n =
5
4
17
11
4
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