The future value in thousands of dollars of an annuity of 500 months and a monthly payment of $380, $400 and $300 over a number of monthly percentage rates follows. 5300 4770- 4240- 3710- 3180 2650- 2120- 1590- 1060- 530- 0.1 02 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Identify the monthly payment with the color of its graph. 400 380 300 a. purple b. blue c. green

The future value in thousands of dollars of an annuity of 500 months and a monthly payment of $380, $400 and $300 over a number of monthly percentage rates follows. 5300 4770- 4240- 3710- 3180 2650- 2120- 1590- 1060- 530- 0.1 02 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Identify the monthly payment with the color of its graph. 400 380 300 a. purple b. blue c. green

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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8a. Compute the future value of a $100 annual annuity for the same combination of rates and time periods: (Round your answers to the nearest cent. Round FVA factors to 4 decimal places.) a. r = 8%, t = 10 years FV of annuity $ b. r = 8%, t = 20 years FV of annuity $ c. r = 4%, t = 10 years FV of annuity $
Calculate the present value of the following annulties, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of S1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) \table[[, \table[[Annuity], [Payment]], \table [[ Annual], [Rate]], \table[[Interest], [Compounded]], \table [[Period], [Invested]], \table [[Present Value of], [ Annuity]]], [1., $5,000, 7.0%, Semiannually,3 years,], [2., 10, 000, 8.0%, Quarterly,2 years, ], [3., 4,000, 10.0 %, Annually,5 years,]]
Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity $500 every 6 months 11 10 semiannually
Problem 1: Read each problem carefully and answer each question to solve the problem. Find the period of deferral in each of the following deferral annuity problems (one way to find the period of deferral is to count the numnber of artificial payment (k). Make a diagram 1. Payment of P 3,000.00 every 3 months for 8 years that will start 6 years Time Diagram Answer
Instructions: Show COMPLETE solution/proof with correct answer. All elements should be included and drawn correctly and; all elements should be labeled with reference and value.
Q 1. An annual income statement from Quest Realty, Inc. is shown below: (A) Revenues Revenue from sales of goods and services. S80,000,000 Operating costs and expenses: Cost of products and services sold. Selling expenses. Administrative expense.. S30,000,000 S3,000,000 $4.000,000 Total operating costs and expenses. S37.000,000 Income from operations. Interest expense (corporate bonds & loans). Non-recurring expense (Legal expenses fines in settling a federal antitrust suit. Income taxes. S43,000,000 S300,000 S200,000 S700.000 Net income. S41,800,000 During this year of operation, Quest Realty owned and occupied an office building in downtown Indianapolis. For this year, the building could have been leased to other businesses for $2,000,000 in lease income. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return annually on funds invested elsewhere. Calculate: a) Total explicit costs b) Total implicit costs c) Total economic…
From the table below, answer comprehensively the following subparts: a. Which plan do you prefer? Why? b. How does duration affect the future value of an annuity? c. How does compounding period affect the future value of an annuity?
Use the ordinary annuity formula shown to the right to determine the accumulated amount in the annuity. $700 invested monthly for 40 years at a 4.0% interest rate compounded monthly A=p1+rnn•t−1rn The accumulated amount will be
Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:
Find the present value of the following perpetuity. Made At: beginning Perpetuity Payment $380 Payment Period 1 month Interest Rate 9.9% Conversion Period annually Find the present value. Do not approximate the answer. The present value is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Suppose you would like to invest your money for your future. You have threechoices of funding agencies namely, FA 1, FA 2, and FA 3. Based on the givendata below, compute for the future interest of each funding agency. What would you choose? Explain your answer.
Use Table 12-2 to calculate the present value (in $) of the annuity due. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Present Valueof the Annuity $400 every month 2 1/4 6 monthly $

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