You want to invest in an annuity that will pay you $10,500 per year for the first 4 years and $7,200 per half year for the last 8 years. If the annuity earns 4.25% compounded annually for the first 4 years and 2.55% compounded semiannually for the remaining 8 years, what would be the amount of your initial investment? Enter the appropriate values in the blanks below, round answers to two decimal places. Initial Balance |<-- N = P/Y= PV = PMT= FV = 4 years Intermediate Balance 8 years A/ N = My P/Y= A PV = A/ PMT= A/ FV = Final Balance ->I A D N
You want to invest in an annuity that will pay you $10,500 per year for the first 4 years and $7,200 per half year for the last 8 years. If the annuity earns 4.25% compounded annually for the first 4 years and 2.55% compounded semiannually for the remaining 8 years, what would be the amount of your initial investment? Enter the appropriate values in the blanks below, round answers to two decimal places. Initial Balance |<-- N = P/Y= PV = PMT= FV = 4 years Intermediate Balance 8 years A/ N = My P/Y= A PV = A/ PMT= A/ FV = Final Balance ->I A D N
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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Subject: finance
Transcribed Image Text:You want to invest in an annuity that will pay you $10,500 per year for the first 4 years and
$7,200 per half year for the last 8 years. If the annuity earns 4.25% compounded annually for
the first 4 years and 2.55% compounded semiannually for the remaining 8 years, what would
be the amount of your initial investment?
Enter the appropriate values in the blanks below, round answers to two decimal places.
►
Initial
Balance
|<-----
N =
P/Y=
PV =
PMT=
FV =
4 years
Intermediate
Balance
---->|<--
A
A/
8 years
N =
P/Y=
PV =
A/
A/ FV =
PMT=
Final
Balance
-->1
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