c. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent. $ d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 35.5 million people, and its population is expected to grow by 4% annually. How long will it take for the population to double? Round your answer to the nearest whole number. years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 14%. Then find the FV of that same annuity. Round your answers to the nearest cent. PV of ordinary annuity: $ FV of ordinary annuity: $ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ h. What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding? Round your answers to the nearest cent. FV with semiannual compounding: $ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $
c. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent. $ d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 35.5 million people, and its population is expected to grow by 4% annually. How long will it take for the population to double? Round your answer to the nearest whole number. years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 14%. Then find the FV of that same annuity. Round your answers to the nearest cent. PV of ordinary annuity: $ FV of ordinary annuity: $ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ h. What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding? Round your answers to the nearest cent. FV with semiannual compounding: $ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $
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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![c. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent.
$
d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places.
%
e. Suppose California's population is 35.5 million people, and its population is expected to grow by 4% annually. How long will it take for the population to double? Round your answer to the nearest whole number.
years
f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 14%. Then find the FV of that same annuity. Round your answers to the nearest cent.
PV of ordinary annuity: $
FV of ordinary annuity: $
g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent.
PV of annuity due: $
FV of annuity due: $
h. What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding? Round your answers to the nearest cent.
FV with semiannual compounding: $
PV with semiannual compounding: $
i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent.
Annual payment for ordinary annuity: $
Annual payment for annuity due: $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45ca41ad-593a-47be-ba58-1becf5d74f6e%2Ff1495623-65ab-43bd-914b-c114e80b2c61%2Flyubs0j_processed.png&w=3840&q=75)
Transcribed Image Text:c. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent.
$
d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places.
%
e. Suppose California's population is 35.5 million people, and its population is expected to grow by 4% annually. How long will it take for the population to double? Round your answer to the nearest whole number.
years
f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 14%. Then find the FV of that same annuity. Round your answers to the nearest cent.
PV of ordinary annuity: $
FV of ordinary annuity: $
g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent.
PV of annuity due: $
FV of annuity due: $
h. What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding? Round your answers to the nearest cent.
FV with semiannual compounding: $
PV with semiannual compounding: $
i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent.
Annual payment for ordinary annuity: $
Annual payment for annuity due: $
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