Today 4. year years years years years $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000(1.0485) 1= $953.74 $1000(1.0485) 2= $909.63 $1000(1.0485) = $867.55 $1000(1.0485) $827.42

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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Question
15. The time line represents which payment scenario?
Today
1.
4
year
years
years
years
years
d or c
$1000
kes do
$1000
$1000
$1000
$1000
$1000
$1000
$1000
$1000
$1000
$1000(1.0485) 1= $953.74
$1000(1.0485) 2= $909.63 €
$1000(1.0485) = $867.55
$1000(1.0485)= $827.42
on
red
nments
%3D
abl
rou
ar ha
o Renee S.
$1000(1.0485) = $789.15
$1000(1.0485)-= $752.64
$1000(1.0485) 7= $717.83
%3D
$1000(1.0485) = $684.62
%3D
$1000(1.0485) =
-0= $652.96
$1000(1.0485)-10 = $622.75
Total $7778.29
omm
a. Present Value of annual payments of $1000 for 5 years at 4.85% per year, compounded annually
b. Present Value quarterly payments of $1000 for 5 years at 19.56% per year, compounded quarterly
c. Present Value of monthly payments of $1000 for 5 years at 4.85% per year, compounded monthly
d. Present Value of quarterly payments of $1000 for 5 years at 19.56% per year, compounded quarterly
e. Present Value of semi-annual payments of $1000 for 5 years at 9.7% per year, compounded semi-
annually
f. Future Value of semi-annual payments of $1000 for 5 years at 4.85% per year, compounded semi-
annually
comm
Transcribed Image Text:15. The time line represents which payment scenario? Today 1. 4 year years years years years d or c $1000 kes do $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000(1.0485) 1= $953.74 $1000(1.0485) 2= $909.63 € $1000(1.0485) = $867.55 $1000(1.0485)= $827.42 on red nments %3D abl rou ar ha o Renee S. $1000(1.0485) = $789.15 $1000(1.0485)-= $752.64 $1000(1.0485) 7= $717.83 %3D $1000(1.0485) = $684.62 %3D $1000(1.0485) = -0= $652.96 $1000(1.0485)-10 = $622.75 Total $7778.29 omm a. Present Value of annual payments of $1000 for 5 years at 4.85% per year, compounded annually b. Present Value quarterly payments of $1000 for 5 years at 19.56% per year, compounded quarterly c. Present Value of monthly payments of $1000 for 5 years at 4.85% per year, compounded monthly d. Present Value of quarterly payments of $1000 for 5 years at 19.56% per year, compounded quarterly e. Present Value of semi-annual payments of $1000 for 5 years at 9.7% per year, compounded semi- annually f. Future Value of semi-annual payments of $1000 for 5 years at 4.85% per year, compounded semi- annually comm
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