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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Question
solution in excel
![Problem: : i= 8% per year, n= 12 years, Pv=$ 5000, Fv=$2000 & type: payments are made at the end
of a period. Find the annual value (A)?
Also use the following equations to find the present worth (Hand calculations &Excel sheet).
F=P(1+i)"
&
A= F,
| (1+i)" –1 ]
Ans.$558.09](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0257e5e-868b-4aca-bf76-4e66edfd389a%2Fde15c039-b331-4086-b048-5b623208c877%2Faen78ih_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem: : i= 8% per year, n= 12 years, Pv=$ 5000, Fv=$2000 & type: payments are made at the end
of a period. Find the annual value (A)?
Also use the following equations to find the present worth (Hand calculations &Excel sheet).
F=P(1+i)"
&
A= F,
| (1+i)" –1 ]
Ans.$558.09
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