Suppose you are going to receive $13,900 per year for six years. The appropriate interest rate is 8.8 percent. 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 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 answer to 2 decimal places, e.g., 32.16.) b-1. Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places ea 3216)

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
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Pls help sir all parts or else pls skip

Suppose you are going to receive $13,900 per year for six years. The appropriate
interest rate is 8.8 percent.
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 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 answer to 2 decimal places, e.g., 32.16.)
b-1. Suppose you plan to invest the payments for six years. What is the future value if the
payments are an ordinary annuity? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
b-2. Suppose you plan to invest the payments for six years. What is the future value if the
payments are an annuity due? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
a-1. Present value of an ordinary annuity
a-2. Present value of an annuity due
b-1. Future value of an ordinary annuity
b-2. Future value of an annuity due
$
45,230.51
Transcribed Image Text:Suppose you are going to receive $13,900 per year for six years. The appropriate interest rate is 8.8 percent. 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 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 answer to 2 decimal places, e.g., 32.16.) b-1. Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a-1. Present value of an ordinary annuity a-2. Present value of an annuity due b-1. Future value of an ordinary annuity b-2. Future value of an annuity due $ 45,230.51
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