Using Technological Tools: Present Value of an Annuity - Knowledge CheckKnowledge CheckYou need cash of $5,000 to be received each year for 4 years beginning one year from now to attend college. Your discount rate is8% compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the present value of theamounts to be received? (Round present value answer to two decimal places (e.g., 52.75).)Inputs?N/ACalculator KeysNTPVPMTFVPresent value$

The present value (PV) of the amounts to be received is $16,560.63 (Calculator inputs are: N = 4, I…

Answered: Using Technological Tools: Present…

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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Direction: Solve manually, use 5 decimal in interest rate, and draw the cash flow diagram. A woman is considering giving an endowment to a university in order to provide payments of P5000 and decreasingly by 4% at the end of each quarter during a year. If interest rate is 10% compounded monthly, what is the capitalized equivalent that must be deposited now so that the bi-monthly payment can be repeated forever?
Savings Plans, Part 1: Frequency of Deposits for Annuities For this problem, you will be looking at the difference that the frequency of deposits and compounding makes on annuities. For all answers given as values of money, round down to the cent. For answers in percents, round to the tenth of a percent. 1. Make a table that shows how much money each person has in their annuity after 1 year, 5 years, 10 years, and 25 years. Calculate how much money each person has invested after 25 years, and how much interest they have earned after 25 years. Then express the interest earned after 25 years as a percent of the amount invested. a. Avery invests $3120 per year in an annuity with a 3.9% APR, compounded annually. b. Britt invests $780 per quarter in an annuity with a 3.9% APR, compounded quarterly. c. Casey invests $260 per month in an annuity that earns 3.9% APR, compounded monthly. d. Devyn invests $60 per week in an annuity that earns 3.9% APR, compounded weekly. (Use 52 weeks…
A new investment opportunity for you is an annuity that pays $560 at the beginning of each year for 3 years. You could earn 5.4% on your money in other investments with equal risk. What is the most you should pay for the annuity? Group of answer choices $1,595.40 $1,756.86 $1,517.12 $1,442.76 $1,696.61
Subject: Engineering economics Topic: Deferred annuity Question: The present value of an annuity is payable annually for 2 years, with the first payment at the end of 10 years is 38,421. If money is worth 2.24%, what is the value of annuity? P.S MANUAL SOLVE THANKS!
ASS - 2
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63
Topic: Ordinary annuity Use these Formula: Present Value: P=C [1-(1+i)^-n/i] Future Value: F=C [(1+i)^n -1/i)] Please use manual solving, final answer is already in the picture.
To pay for your education, you've taken out $24 comma 00024,000 in student loans. If you make monthly payments over 1212 years at 66 percent compounded monthly, how much are your monthly student loan payments? Question content area bottom Part 1 Your monthly student loan payments are $enter your response here. (Round to the nearest cent.)
4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)
1. Calculate the present value of each cashflow using a discount rate of 7%. Which do you prefer most? Show and explain all supporting calculations. a. Cashflow A: receive Php60 today and then receive Php60 in four years. b. Cashflow B: receive Php12 every year, forever, starting today. Cashflow C: pay Php50 every year for five years, with the first payment being next year, and then subsequently receive Php30 every year for 20 years. d. Cashflow D: receive Php9 every other year, forever, with the first payment being next C. year.

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