Suppose you just bought an annuity with 12 annual payments of $15,700 at a discount rate of 11.75 percent per y a. What is the value of the investment at the current interest rate of 11.75 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What happens to the value of your investment if interest rates suddenly drop to 6.75 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What happens to the value of your investment if interest rates suddenly rise to 16.75 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Present value at 11.75 percent $ 124,187.88 b. Present value at 6.75 percent $ 153,795.59 c. Present value at 16.75 percent $ 97,472.81

Suppose you just bought an annuity with 12 annual payments of $15,700 at a discount rate of 11.75 percent per y a. What is the value of the investment at the current interest rate of 11.75 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What happens to the value of your investment if interest rates suddenly drop to 6.75 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What happens to the value of your investment if interest rates suddenly rise to 16.75 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Present value at 11.75 percent $ 124,187.88 b. Present value at 6.75 percent $ 153,795.59 c. Present value at 16.75 percent $ 97,472.81

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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Suppose you are going to receive $17,500 per year for five years. The appropriate interest rate is 10 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 of the payments 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 five 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. 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.) c-1. Which has the higher present value, the ordinary annuity or annuity due? c-2. Which has the higher future value? a-1. Present…
In the present value of an annuity due table, the factors ________. Group of answer choices decrease as the interest rates increase, given a set number of periods decrease as the periods increase, given a set interest rate increase as the periods decrease, given a set interest rate increase as the interest rates increase, given a set number of periods
Solve for the unknown interest rate in each of the following: (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value $ 810 % $ 1,571 1,000 6 1,908 24,500 17 151,332 79,800 20 331,815 5.
An annuity and an annuity due with the same number of payments have the same future value if the interest rate is 10 percent. Which one has the higher payment? They both must have the same payment since the future values are the same. The annuity due has the higher payment. There is no way to tell which has the higher payment. An annuity and an annuity due cannot have the same future value. The annuity has the higher payment.
Which of the following statement is most correct? When solving a problem involving an annuity dueyou must select the END model on your financial calculator When using a financial calculatorcash outflows generally have to be entered as negative numbers because a financial calculator sees money leaving your hands The present value of a single future sum of money is POSITIVELY related to both the number of years until payment is received and the discount rate In the loan amortization tablethe payment is constant, the interest payment is increasing and the principals are declining.
Subject :- Accounting
i need answer typing clear urjent no chatgpt if the future value of an ordinary eight year annuity is $5500 in interest rates are 8.0% what is the future value of the same annuity due? (round your answer to 2 decimal places)
ind the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. $800 per year for 10 years at 12%. $ $400 per year for 5 years at 6%. $ $800 per year for 5 years at 0%. $ Now rework parts a, b, and c assuming that payments are made…
What is the present value of $1,300 due in 14 years at a 7 percent interest rate and 12 percent interest rate? Do not round intermediate calculations. Round your answers to the nearest cent. Present value at 7%: $ Present value at 12%: $ Explain why the present value is lower when the interest rate is higher. I. The less interest you can earn during an investment period, the less you need to invest today to receive a particular amount in the future. II. The more interest you can earn during an investment period, the less you need to invest today to receive a particular amount in the future. III. The more interest you can earn during an investment period, the more you need to invest today to receive a particular amount in the future. -Select- v
a. What is the present value of a 3-year annuity of $110 if the discount rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Please solve very soon completely
For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value 2,200 12 12 % 8,652 6 10 75,355 13 11 182,796 %24

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