Xenia has a 16 year annuity immediate making annual payments that grow geometrically at the rate 8.000%. T first payment is $4500.00 and the interest rate is ¡(4) = 9.250%$. What is the present value of her annuity? O a. Q = $62,619.36 O b. Q = $63,210.11 O c. Q = $64,982.36 O d. Q = $59,665.62 e. Q = $59,074.87
Xenia has a 16 year annuity immediate making annual payments that grow geometrically at the rate 8.000%. T first payment is $4500.00 and the interest rate is ¡(4) = 9.250%$. What is the present value of her annuity? O a. Q = $62,619.36 O b. Q = $63,210.11 O c. Q = $64,982.36 O d. Q = $59,665.62 e. Q = $59,074.87
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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6. math of interest. please solve it correctly. Not graded question
Transcribed Image Text:Xenia has a 16 year annuity immediate making annual payments that grow geometrically at the rate 8.000%. The
first payment is $4500.00 and the interest rate is i(4) = 9.250%$. What is the present value of her annuity?
Q = $62,619.36
b. Q = $63,210.11
C. Q = $64,982.36
d. Q $59,665.62
Q = $59,074.87
a.
e.
Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 ( Quite sure: >80%)
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