The annually compounded discount rate is 9.0%. You are asked to calculate the present value of a 18-year annuity with payments of $50,900 per year. a. Calculate the PV if the annuity payments arrive at one-year intervals. The first payment arrives one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value %24 445,661.32 b. Calculate the PV if the first payment arrives in six months. Following payments arrive at one-year intervals (i.e., at 18 months, 30 months, etc.). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value
The annually compounded discount rate is 9.0%. You are asked to calculate the present value of a 18-year annuity with payments of $50,900 per year. a. Calculate the PV if the annuity payments arrive at one-year intervals. The first payment arrives one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value %24 445,661.32 b. Calculate the PV if the first payment arrives in six months. Following payments arrive at one-year intervals (i.e., at 18 months, 30 months, etc.). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value
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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B only please. Thanks
Transcribed Image Text:The annually compounded discount rate is 9.0%. You are asked to calculate the present value of a 18-year annuity with payments of
$50,900 per year.
a. Calculate the PV if the annuity payments arrive at one-year intervals. The first payment arrives one year from now. (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
Present value
24
445,661.32
b. Calculate the PV if the first payment arrives in six months. Following payments arrive at one-year intervals (i.e., at 18 months, 30
months, etc.). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present value
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