Present value of an annuity Determine the present value of $160,000 to be received at the end of each of 4 years, using an interest rate of 5%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value

Present value of an annuity Determine the present value of $160,000 to be received at the end of each of 4 years, using an interest rate of 5%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value

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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For the following ordinary annuity, determine the size of the periodic payment Present Payment Period 1 month Conversion Future Value Value Term of Annuity Interest Rate 9 years, 9 months Period $12,200 00 88% monthly The payment is $ (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed.)
Future Value of an Annuity for Various Compounding Periods Find the future values of the following ordinary annuities. FV of $600 each 6 months for 4 years at a nominal rate of 12%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ FV of $300 each 3 months for 4 years at a nominal rate of 12%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ The annuities described in parts a and b have the same amount of money paid into them during the 4-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 4 years. Why does this occur?
What is the future value of an annuity due of $800 paid semi-annually for the next 7 years, with a yield of 5% p.a. compounded semi-annually? Select one: a. $13,215.16 b. $6,923.22 c. $11,200.00 d. $13,545.54
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $6,500 under each of the following situations: Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. The payments are received at the end of each of the five years and interest is compounded annually. 2. The payments are received at the beginning of each of the five years and interest is compounded annually. 3. The payments are received at the end of each of the five years and interest is compounded quarterly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Deposit Date The payments are received at the end of each of the five years and interest is compour Note: Round your final answers to nearest whole dollar amount. First payment Second payment Third payment Fourth payment Fifth payment j= 3% 3% 3% 3% 3% Required 3 X Answer is complete but not entirely corre n= 4 ✓ $ 8 12 16 ✓…
Find the future value of the following ordinary annuity. periodic payment $133.00 Payment Interval 1 month Term 4 years Interest Rate 10% Conversion Period semi-annually The future value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Present value
The present value of a perpetuity paying 11 at the end of every 4 years is 0.82. Find the annual effective rate of interest i. A. 5.51% B. 22.06% C. 33.09% D. 31.51% E. 8.82%
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
What is the future value of an annual annuity of $10,400 invested at the beginning of each year for 6 years earning an interest rate of 15%, compounded annually? Group of answer choices $107,312 $91,039 $104,695 $115,164
Find the future value of the following ordinary annuity. Periodic Payment $155.00 Payment Interval 3 months Term Interest Rate Conversion Period 10 years 9% annually The future value is s (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
,man.1
The present value of an ordinary annuity of $350 each year for five years, assuming an interest rate of 4%, is: $288 $1,558 $1,896 $1,750

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