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(Future value of an annuity) Find the future value at the end of year 12 of an annuity that pays $1,500 per year for 12 years compounded annually at 8 percent. What would be the future value of this annuity if it were compounded annually at 15 percent? (Present value of an annuity due) Determine the present value of an annuity due of $4,000 per year for 8 years discounted back to the present at an annual rate of 14 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 19 percent? (-)

(Future value of an annuity) Find the future value at the end of year 12 of an annuity that pays $1,500 per year for 12 years compounded annually at 8 percent. What would be the future value of this annuity if it were compounded annually at 15 percent? (Present value of an annuity due) Determine the present value of an annuity due of $4,000 per year for 8 years discounted back to the present at an annual rate of 14 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 19 percent? (-)

Essentials Of Investments
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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(Future value of an annuity) Find the future value at the end of year 12 of an annuity that pays $1,500 per year for 12 years compounded annually at 8 percent. What would be the future value of this annuity if it were compounded annually at 15 percent?
Transcribed Image Text:(Future value of an annuity) Find the future value at the end of year 12 of an annuity that pays $1,500 per year for 12 years compounded annually at 8 percent. What would be the future value of this annuity if it were compounded annually at 15 percent?
(Present value of an annuity due) Determine the present value of an annuity due of $4,000 per year for 8 years discounted back to the present at an annual rate of 14 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 19 percent? (-)
Transcribed Image Text:(Present value of an annuity due) Determine the present value of an annuity due of $4,000 per year for 8 years discounted back to the present at an annual rate of 14 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 19 percent? (-)
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