Problem 12-7 (Algo) [LU 12-2 (2)] Complete the following using present value. (Use the Table 12.3 provided.) Note: Do not round intermediate calculations. Round the "Rate used" to the nearest tenth percent. Round the "PV factor" to 4 decimal places and final answer to the nearest cent. Amount desired at end of period Length of time Rate $ 6,700 5 years On PV Table 12.3 Compounded Period used PV factor used Rate used 3% Semiannually % PV of amount desired at end of period
Problem 12-7 (Algo) [LU 12-2 (2)] Complete the following using present value. (Use the Table 12.3 provided.) Note: Do not round intermediate calculations. Round the "Rate used" to the nearest tenth percent. Round the "PV factor" to 4 decimal places and final answer to the nearest cent. Amount desired at end of period Length of time Rate $ 6,700 5 years On PV Table 12.3 Compounded Period used PV factor used Rate used 3% Semiannually % PV of amount desired at end of period
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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![Drill Problem 12-7 (Algo) [LU 12-2 (2)]
Complete the following using present value. (Use the Table 12.3 provided.)
Note: Do not round intermediate calculations. Round the "Rate used" to the nearest tenth percent. Round the "PV factor" to 4
decimal places and final answer to the nearest cent.
Amount
desired at
end of period
Length
of time
Rate
$
6,700
5 years
On PV Table 12.3
Compounded
Period
used
PV factor used
Rate used
3%
Semiannually
%
PV of amount
desired at
end of period](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a20ca76-394a-4538-a8c3-01a81dc79f4f%2Fb1300968-8d3e-4b0b-b6fe-c7f6032af215%2F0vt9jcf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Drill Problem 12-7 (Algo) [LU 12-2 (2)]
Complete the following using present value. (Use the Table 12.3 provided.)
Note: Do not round intermediate calculations. Round the "Rate used" to the nearest tenth percent. Round the "PV factor" to 4
decimal places and final answer to the nearest cent.
Amount
desired at
end of period
Length
of time
Rate
$
6,700
5 years
On PV Table 12.3
Compounded
Period
used
PV factor used
Rate used
3%
Semiannually
%
PV of amount
desired at
end of period
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