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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