What is the fair market value today for a retirement annuity that would provide $6,000 at the end of each quarter for the first 6 years and $4,000 at the end of each month for the next 9 years? Interest is 6.95% compounded quarterly for the entire period. ? Today $6000/quarter 6 years $4000/month 15 years Refer to the "?"s in the table and considering inflows and outflows of cash, enter the appropriate values in the blanks below. Round final dollar answers to 2 decimal places. Mode END
What is the fair market value today for a retirement annuity that would provide $6,000 at the end of each quarter for the first 6 years and $4,000 at the end of each month for the next 9 years? Interest is 6.95% compounded quarterly for the entire period. ? Today $6000/quarter 6 years $4000/month 15 years Refer to the "?"s in the table and considering inflows and outflows of cash, enter the appropriate values in the blanks below. Round final dollar answers to 2 decimal places. Mode END
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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1:
2:
What is the fair market value today for a retirement annuity that would provide
$6,000 at the end of each quarter for the first 6 years and $4,000 at the end of each
month for the next 9 years? Interest is 6.95% compounded quarterly for the entire
period.
?
Today
#1
#2
Step #1:
N=
PV =
PMT=
PY =
Refer to the "?"s in the table and considering inflows and outflows of cash, enter
the appropriate values in the blanks below.
Round final dollar answers to 2 decimal places.
Mode = END
FV-
Step #2:
N=
PV =
PMT=
PY =
FV-
N
?
$6000/quarter
?
IY
6.95
2
6.95 4
<>
N
CY
A/
4
2
2
A
N
PV
6 years
?
?
PMT
?
$4000/month
?
PY
?
?
FV
15 years
?
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