(Present value of an annuity due) Determine the present value of an annuity due of $5,000 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? a. If the annual discount rate is 14 percent, the present value of the annuity due is S. (Round to the nearest cent.)
(Present value of an annuity due) Determine the present value of an annuity due of $5,000 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? a. If the annual discount rate is 14 percent, the present value of the annuity due is S. (Round to the nearest cent.)
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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![(Present value of an annuity due) Determine the present value of an annuity due of $5,000 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?
a. If the annual discount rate is 14 percent, the present value of the annuity due is $
(Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae506661-644e-4169-a862-a9997a70c34b%2Fefeb6cfe-e538-4bd7-b9ad-779538349cee%2Fp7ngcyq_processed.png&w=3840&q=75)
Transcribed Image Text:(Present value of an annuity due) Determine the present value of an annuity due of $5,000 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?
a. If the annual discount rate is 14 percent, the present value of the annuity due is $
(Round to the nearest cent.)
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