Part 1. On the right are six diagrams representing six different present and future value concepts stated on the left. Identify the diagrams with the concepts by writing the identifying letter of the diagram on the blank line at the left. Assume n = 4 andi 8%. Concept Diagram of Concept 1. Future value of 1. $1 a. 2. Present value of 1. 3. Future value of an annuity $1 $1 $1 $1 b. |- H due of 1. + - 4. Future value of an ordinary annuity of 1. $1 $1 $1 $1 5. Present value of an ordinary c. + + ---I annuity of 1. 6. Present value of an annuity $1 $1 $1 $1 due of 1. d. + + + $1 e. F $1 $1 $1 $1 f. F +
Part 1. On the right are six diagrams representing six different present and future value concepts stated on the left. Identify the diagrams with the concepts by writing the identifying letter of the diagram on the blank line at the left. Assume n = 4 andi 8%. Concept Diagram of Concept 1. Future value of 1. $1 a. 2. Present value of 1. 3. Future value of an annuity $1 $1 $1 $1 b. |- H due of 1. + - 4. Future value of an ordinary annuity of 1. $1 $1 $1 $1 5. Present value of an ordinary c. + + ---I annuity of 1. 6. Present value of an annuity $1 $1 $1 $1 due of 1. d. + + + $1 e. F $1 $1 $1 $1 f. F +
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:Part 1. On the right are six diagrams representing six different present and future value concepts
stated on the left. Identify the diagrams with the concepts by writing the identifying letter of the
diagram on the blank line at the left. Assume n = 4 and i = 8%.
Concept
Diagram of Concept
1. Future value of 1.
$1
+
a.
2. Present value of 1.
3. Future value of an annuity
$1
$1
$1
$1
b. |- - - H
due of 1.
+
4. Future value of an ordinary
annuity of 1.
?
$1
$1
$1
$1
5. Present value of an ordinary
c.
+
---I
annuity of 1.
6. Present value of an annuity
$1
$1
$1
$1
d. +
due of 1.
$1
e. F
$1
$1
$1
$1
f. H
+
+
Part 2. For each of the Concepts above provide an explanation of what it represents and include
an example for each of a use in financial reporting.
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