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 $ 585,296 351,822 510,000 245,000 2,000 150,000 200,000 69,620 j= 8% 9% 10% n = 5 4 8 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. (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 $ 585,296 351,822 510,000 245,000 2,000 150,000 200,000 69,620 j= 8% 9% 10% n = 5 4 8 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
$
2,000
150,000
200,000
69,620
585,296
351,822
510,000
245,000
j=
8%
9%
10%
n=
5
4
8
4
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