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QUESTION 12 THIS IS A MANDATORY SUBMISSION Calculate the number of compounding periods for an ordinary annuity with a future value of $16681 and payments of $448, The nominal rate is 5%/year compounded semi- annually. Note: this is a simple annuity, which means the payments occur semi-annually as well. Write your final answer as an integer.

QUESTION 12 THIS IS A MANDATORY SUBMISSION Calculate the number of compounding periods for an ordinary annuity with a future value of $16681 and payments of $448, The nominal rate is 5%/year compounded semi- annually. Note: this is a simple annuity, which means the payments occur semi-annually as well. Write your final answer as an integer.

Essentials Of Investments
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
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QUESTION 11 THIS IS A MANDATORY SUBMISSION An ordinary annuity has payments of $1000 made semi-annually with a nominal compound interest rate of 5%/year. Note the compounding rate is the same as the payment period (as is the case for simple annuities). Assume the total length of the annuity is 4 years. Determine a) A cash flow diagran for the annuity from the initial start of the loan until the end of the 4 years b) The present value of the 2nd payment only c) The future value of the 3rd payment at the end of year 4 d) The present value of the entire annuity Attach File Browse Local Files Browse Content Collection QUESTION 12 THIS IS A MANDATORY SUBMISSION Calculate the number of compounding periods for an ordinary annuity with a future value of $16681 and payments of $448, The nominal rate is 5%/year compounded semi- annually. Note: this is a simple annuity, which means the payments occur semi-annually as well, Write your final answer as an integer. QUESTION 13 The present value of an ordinary annuity can be calculated in two ways: i) The sum of the present values of each individual payment made for the entirety of the loan or i) Using 1- (1+i) ¯" PV = PMT
Transcribed Image Text:QUESTION 11 THIS IS A MANDATORY SUBMISSION An ordinary annuity has payments of $1000 made semi-annually with a nominal compound interest rate of 5%/year. Note the compounding rate is the same as the payment period (as is the case for simple annuities). Assume the total length of the annuity is 4 years. Determine a) A cash flow diagran for the annuity from the initial start of the loan until the end of the 4 years b) The present value of the 2nd payment only c) The future value of the 3rd payment at the end of year 4 d) The present value of the entire annuity Attach File Browse Local Files Browse Content Collection QUESTION 12 THIS IS A MANDATORY SUBMISSION Calculate the number of compounding periods for an ordinary annuity with a future value of $16681 and payments of $448, The nominal rate is 5%/year compounded semi- annually. Note: this is a simple annuity, which means the payments occur semi-annually as well, Write your final answer as an integer. QUESTION 13 The present value of an ordinary annuity can be calculated in two ways: i) The sum of the present values of each individual payment made for the entirety of the loan or i) Using 1- (1+i) ¯" PV = PMT
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