Individual Assessment 1.a: Simple Ordinary Annuity Directions: Calculate the future value of #1, 2, & 3 and present value of #4 & 5. Length of Annuity 3 years 5 years 4 years Length of Annuity 10 years Principal Interest Mode of Future Rate Payment Annually Monthly Value 1. P20,000 2% 2. P1,500 7% 3. P4,300 3.50% Quarterly Principal Interest Mode of Present Rate Payment Semi-annually Value 4. P5,000 3.20% 5. P3,800 6% Bimonthly 2 years

Individual Assessment 1.a: Simple Ordinary Annuity Directions: Calculate the future value of #1, 2, & 3 and present value of #4 & 5. Length of Annuity 3 years 5 years 4 years Length of Annuity 10 years Principal Interest Mode of Future Rate Payment Annually Monthly Value 1. P20,000 2% 2. P1,500 7% 3. P4,300 3.50% Quarterly Principal Interest Mode of Present Rate Payment Semi-annually Value 4. P5,000 3.20% 5. P3,800 6% Bimonthly 2 years

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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nnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Present Valueof the Annuity $800 every month 2 1/4 1 4 6 monthly
Find the periodic payment for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future compounding time periodic interest in Value frequency deposit (m) earned years $ $200,000 5% annually 10 12.5779 15905.29 $ $250,000 7.8% semiannually 11 34.6003 7225.43 $ $125,000 3.7% quarterly 15 120.3921 1038.46 $ $ $225,000 3% monthly 15 $ $175,000 7.5% weekly 12 A
Lepp Complete present value of an ordinary annuity: Note: Round your answer to the nearest cent. Amount of Annuity Expected $ 16,000 Payment Payable Years Quarterly 2 Interest Rate earned 12% Present value
Construct an annuity table showing the deposits, interests, and balances for the saving plan below (compulsory to show the working steps to get the interest value): a) $350 is invested in an increasing annuity at the end of every 6 months for 3 years. The account pays 10.25% interest rate compounded semiannually. Period Beginning Interest Deposit Ending balance (Every 6 months) Balance 1 $0.00 $0.00 $350.00 $350.00 3 4 (Copy this table to your answer script)
Amount of annuity expected $900 Payment Annually Time 4 years Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Opening balance ces Interest Annuity Closing balance Year 1 Year 2 Year 3 Year 4 3,118.59
Compound Interest Table Complete the following schedule for investments a through f by indicating the relevant factor from the present value or future value table and the final present or future value amount. Investment Compounding a. Annuity b. Annuity Annually Semiannually Semiannually Annually c. Annuity d. Single Payment e. Single Payment Semiannually f. Single Payment Semiannually Factor Answer $ a. $ Annual Interest Rate Amount 5% $2,000 4% 1,000 6% 14,000 •Note: Round your answers to the nearest whole dollar. •Note: Do not use a negative sign (-) with your answers. b. 5% 9,000 6% 16,000 4% 9,600 $ C. Investment $ Period d. $ Payment at Beg. or End e. of Period 2 years End 3 years Beginning 4 years Beginning 6 years n/a 5 years n/a 4 years n/a $ f. Future Value or Present Value Future Present Future Present Future Present
Future value interest factor of an ordinary annuity of $1 per period at i% for n periods, FVIFA(i,n). Period 5.0% 5.5% 6.0% 1.0% 1.0000 1.5% 1.0000 2.0% 1.0000 1 1.0000 1.0000 1.0000 1.0000 1.0000 2 2.0050 2.0100 2.0150 2.0200 2.0250 2.0300 2.0350 1.0000 2.0400 3.1216 3 3.0150 3.0301 3.0452 3.0756 3.0909 3.1062 4 4.0301 3.0604 4.1216 5.2040 4.1525 4.1836 4.2149 4.2465 5 4.0604 4.0909 5.1010 5.1523 6.1520 6.2296 6.3081 5.0503 5.2563 5.3091 5.3625 5.4163 6 6.0755 6.3877 6.4684 6.5502 6.6330 7 7.1059 7.5474 7.6625 7.7794 7.4343 8.4328 8.5830 8 8.1414 9 10 11 12 13 14 15 16 17 18 19 6.5% 7.0% 7.5% 9.0% 8.5% 0.0% 0.5% 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0450 2.0500 2.0550 2.0600 2.0650 2.0700 2.0750 2.0800 2.0850 2.0900 2.0950 3.1370 3.1525 3.1680 3.1836 3.1992 3.2149 3.2306 3.2464 3.2622 3.2781 3.2940 4.2782 4.3101 4.3423 4.3746 4.4072 4.4399 4.4729 4.5061 4.5395 4.5731 4.6070 5.4707 5.5256 5.5811 5.6371 5.6936 5.7507 5.8084 5.8666 5.9254 5.9847 6.0446…
Present value (in $) of an annuity due Nominal Annuity Payment Time Present Value Payment Frequency Interest Period (years) Rate (%) Compounded of the Annuity $1,300 every year 5.7 annually
,man.1

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