The figure shows a graph that compares the present values of two ordinary annuities of $900 quarterly, one at 5% compounded quarterly and one at 9% compounded quarterly 70000 Dollars 60000 50000 40 000 30000 20000 10000 0 20 40 60 80 100 120 140 Quarters (a) Determine which graph corresponds to the 5% rate and which corresponds to the 9% rate. The higher graph is the one at 5% and the lower one is the one at 9% The lower graph is the one at 5% and the higher one is the one at 9 (b) Use the graph to estimate the difference (in dollars) between the present values of these annuities for 25 years (100 quarters) $1078497 X fr Writ sentence that lains this ritterarie
The figure shows a graph that compares the present values of two ordinary annuities of $900 quarterly, one at 5% compounded quarterly and one at 9% compounded quarterly 70000 Dollars 60000 50000 40 000 30000 20000 10000 0 20 40 60 80 100 120 140 Quarters (a) Determine which graph corresponds to the 5% rate and which corresponds to the 9% rate. The higher graph is the one at 5% and the lower one is the one at 9% The lower graph is the one at 5% and the higher one is the one at 9 (b) Use the graph to estimate the difference (in dollars) between the present values of these annuities for 25 years (100 quarters) $1078497 X fr Writ sentence that lains this ritterarie
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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![The figure shows a graph that compares the present values of two ordinary annuities of $900 quarterly, one at 5% compounded quarterly and one at 9% compounded quarterly.
Dollars
70000
60000
50000
40 000
30.000
20 000
10000
0 20 40 60 80 100 120 140
Quarters
@
(a) Determine which graph corresponds to the 5% rate and which corresponds to the 9% rate.
The higher graph is the one at 5% and the lower one is the one at 9%
O The lower graph is the one at 5% and the higher one is the one at 9%
(b) Use the graph to estimate the difference (in dollars) between the present values of these annuities for 25 years (100 quarters)
$1078497](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5663ff4f-e9c6-44b9-9ee0-b6aee4b50118%2Fef299f4f-60ed-4728-8788-3c22385b5ab8%2F3c2onyc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The figure shows a graph that compares the present values of two ordinary annuities of $900 quarterly, one at 5% compounded quarterly and one at 9% compounded quarterly.
Dollars
70000
60000
50000
40 000
30.000
20 000
10000
0 20 40 60 80 100 120 140
Quarters
@
(a) Determine which graph corresponds to the 5% rate and which corresponds to the 9% rate.
The higher graph is the one at 5% and the lower one is the one at 9%
O The lower graph is the one at 5% and the higher one is the one at 9%
(b) Use the graph to estimate the difference (in dollars) between the present values of these annuities for 25 years (100 quarters)
$1078497
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