What is the present value of a 9-year annuity of $4,000 per period in which payments come at the beginning of each period? The interest rate is 13 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table value. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value
What is the present value of a 9-year annuity of $4,000 per period in which payments come at the beginning of each period? The interest rate is 13 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table value. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value
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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Transcribed Image Text:Appendix D Present value of an annuity of $1, PV
PV-A
(1+
Percent
Period
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
1.
0.990
0.980
0.971
0.962
0.952
0.943
0.935
0.926
0.917
0.909
0.901
0.893
1.970
1.942
1.913
1.886
1.859
1.833
1.808
1.783
1.759
1.736
1.713
1.690
3
2.941
2.884
2.829
2.775
2.723
2.673
2.624
2.577
2.531
2.487
2.444
2.402
4
3.902
3.808
3.717
3.630
3.546
3.465
3.387
3.312
3.240
3.170
3.102
3.037
4.853
4.713
4.580
4.452
4.329
4.212
4.100
3.993
3.890
3.791
3.696
3.605
6.
5.795
5.601
5.417
5.242
5.076
4.917
4.767
4.623
4,486
4.355
4.231
4.111
6.728
6.472
6.230
6.002
5.786
5.582
5.389
5.206
5.033
4.868
4.712
4.564
7.652
7.325
7.020
6.733
6.463
6.210
5.971
5.747
5.535
5.335
5.146
4.968
8.566
8.162
7.786
7.435
7.108
6.802
6.515
6.247
5.995
5.759
5.537
5.328
10
9.471
8.983
8.530
8.111
7.722
7.360
7.024
6.710
6.418
6.145
5.889
5.650
11
10.368
9.787
9.253
8.760
8.306
7.887
7.499
7.139
6.805
6.495
6.207
5.938
........
12
11.255
10.575
9.954
9.385
8.863
8.384
7.943
7.536
7.161
6.814
6.492
6.194
13
12.134
11.348
10.635
9.986
9.394
8.853
8.358
7.904
7.487
7.103
6.750
6.424
14
13.004
12.106
11.296
10.563
9.899
9.295
8.745
8.244
7.786
7.367
6.982
6.628
15
13.865
12.849
11.938
11.118
10.380
9.712
9.108
8.559
8.061
7.606
7.191
6.811
16
14.718
13.578
12.561
11.652
10.838
10.106
9.447
8.851
8.313
7.824
7.379
6.974
17
15.562
14.292
13.166
12.166
11.274
10.477
9.763
9.122
8.544
8.022
7.549
7.120
18
16.398
14.992
13.754
12.659
11.690
10.828
10.059
9.372
8.756
8.201
7.702
7.250
19
17.226
15.678
14.324
13.134
12.085
11.158
10.336
9.604
8.950
8.365
7.839
7.366
20
18.046
16.351
14.877
13.590
12.462
11.470
10.594
9.818
9.129
8.514
7.963
7.469
.... .
25
22.023
19.523
17.413
15.622
14.094
12.783
11.654
10.675
9.823
9.077
8.422
7.843
30
25.808
22.396
19.600
17.292
15.372
13.765
12.409
11.258
10.274
9.427
8.694
8.055
...........
40
32.835
27.355
23.115
19.793
17.159
15.046
13.332
11.925
10.757
9.779
8.951
8.244
50
39.196
31.424
25.730
21.482
18.256
15.762
13.801
12.233
10.962
9.915
9.042
8.304
Transcribed Image Text:What is the present value of a 9-year annuity of $4,000 per period in which payments come at the beginning of each period? The
interest rate is 13 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial
calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table
value. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Present value
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