15. The time line represents which payment scenario?Today1.4yearyearsyearsyearsyearsd or c$1000kes 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)= $827.42onrednments%3Dablrouar hao 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 = $622.75Total $7778.29omma. Present Value of annual payments of $1000 for 5 years at 4.85% per year, compounded annuallyb. Present Value quarterly payments of $1000 for 5 years at 19.56% per year, compounded quarterlyc. Present Value of monthly payments of $1000 for 5 years at 4.85% per year, compounded monthlyd. Present Value of quarterly payments of $1000 for 5 years at 19.56% per year, compounded quarterlye. Present Value of semi-annual payments of $1000 for 5 years at 9.7% per year, compounded semi-annuallyf. Future Value of semi-annual payments of $1000 for 5 years at 4.85% per year, compounded semi-annuallycomm

In this we have to find out present value of semi annual annuity.

Answered: Today 4. year years years years years…

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

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Question content area top Part 1 What sum deposited today at 6% compounded annually for 15 years will provide the same amount as $1000 deposited at the end of each year for 15 years at 7% compounded annually?
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