Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate is 8.4%. a-1 What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) a-2 What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) b-1 Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) b-2 Suppose you plan to invest the payments for five years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate is 8.4%. a-1 What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) a-2 What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) b-1 Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) b-2 Suppose you plan to invest the payments for five years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
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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Transcribed Image Text:Suppose you are going to receive $13,500
per year for five years. The appropriate
interest rate is 8.4%.
a-1 What is the present value of the
payments if they are in the form of
an ordinary annuity? (Do not round
intermediate calculations and round your
final answer to 2 decimal places. (e.g.,
32.16))
a-2 What is the present value if the
payments are an annuity due? (Do not
round intermediate calculations and round
your final answer to 2 decimal places.
(e.g., 32.16))
b-1 Suppose you plan to invest the
payments for five years. What is the future
value if the payments are an ordinary
annuity? (Do not round intermediate
calculations and round your final answer
to 2 decimal places. (e.g., 32.16))
b-2 Suppose you plan to invest the
payments for five years. What is the future
value if the payments are an annuity due?
(Do not round intermediate calculations
and round your final answer to 2 decimal
places. (e.g., 32.16))
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