Suppose that you will receive annual payments of $15,000 for a period of 15 years. The first payment will be made 8 years from now. If the interest rate is 12.50%, what is the value of the annuity in year 7, what is the current value of this stream of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of the Security in Year 7 Value of the Security today $ SA A
Suppose that you will receive annual payments of $15,000 for a period of 15 years. The first payment will be made 8 years from now. If the interest rate is 12.50%, what is the value of the annuity in year 7, what is the current value of this stream of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of the Security in Year 7 Value of the Security today $ SA A
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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Transcribed Image Text:Suppose that you will receive annual payments of $15,000 for a period of 15 years. The
first payment will be made 8 years from now. If the interest rate is 12.50%, what is the
value of the annuity in year 7, what is the current value of this stream of cash flows? (Do
not round intermediate calculations. Round your answer to 2 decimal places.)
Value of the Security
in Year 7
Value of the Security
today
SA
SA
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