The present value of $400 per year at 10 % for 10 years annuity .

Question

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Answer 1

Question

Chapter 4, Problem 13P

a)

Summary Introduction

To compute: The present value of $400 per year at 10 % for 10 years annuity.

b)

Summary Introduction

To compute: The present value of $200per year at 5% for 5 years annuity.

c)

Summary Introduction

To compute: The present value of $400 per year at 0% for 5 years annuity.

d)

Summary Introduction

To compute: The present value of annuity due for the above three cases.

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Find the future values of these ordinary annuities. Compounding occurs once a year. a.$ 500 per year for 8 years at 14% b. $250 per year for 4 years at 7% c $700 per year for 4 years at 0% d. Rework parts a, b, and c assuming they are annuities due. Please show all your work.

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Q. No. 02: Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. a) $300 per year for 10 years at 10% b) $100 per year for 5 years at 5% c) $300 per year for 5 years at 0% d) Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Q.No. 03: Solve following time line, draw a clear diagram in your answer sheet. Assume opportunity cost of 12% 6 7 3 500 500 500 300 300 300 300 300 Q. No. 04: Discuss following terms with examples; a) Perpetuity b) Par Value c) Coupon Rate d) Zero-Coupon Bond

Answer 2

Question

Chapter 4, Problem 13P

a)

Summary Introduction

To compute: The present value of $400 per year at 10 % for 10 years annuity.

b)

Summary Introduction

To compute: The present value of $200per year at 5% for 5 years annuity.

c)

Summary Introduction

To compute: The present value of $400 per year at 0% for 5 years annuity.

d)

Summary Introduction

To compute: The present value of annuity due for the above three cases.

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Answer 3

Question

Chapter 4, Problem 13P

a)

Summary Introduction

To compute: The present value of $400 per year at 10 % for 10 years annuity.

b)

Summary Introduction

To compute: The present value of $200per year at 5% for 5 years annuity.

c)

Summary Introduction

To compute: The present value of $400 per year at 0% for 5 years annuity.

d)

Summary Introduction

To compute: The present value of annuity due for the above three cases.

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Answer 4

Question

Chapter 4, Problem 13P

a)

Summary Introduction

To compute: The present value of $400 per year at 10 % for 10 years annuity.

b)

Summary Introduction

To compute: The present value of $200per year at 5% for 5 years annuity.

c)

Summary Introduction

To compute: The present value of $400 per year at 0% for 5 years annuity.

d)

Summary Introduction

To compute: The present value of annuity due for the above three cases.

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Answer 5

Chapter 4, Problem 13P

a)

Summary Introduction

To compute: The present value of $400 per year at 10 % for 10 years annuity.

b)

Summary Introduction

To compute: The present value of $200per year at 5% for 5 years annuity.

c)

Summary Introduction

To compute: The present value of $400 per year at 0% for 5 years annuity.

d)

Summary Introduction

To compute: The present value of annuity due for the above three cases.

Answer 6

Chapter 4, Problem 13P

a)

Summary Introduction

To compute: The present value of $400 per year at 10 % for 10 years annuity.

Answer 7

Chapter 4, Problem 13P

a)

Summary Introduction

To compute: The present value of $400 per year at 10 % for 10 years annuity.

Answer 8

b)

Summary Introduction

To compute: The present value of $200per year at 5% for 5 years annuity.

Answer 9

b)

Summary Introduction

To compute: The present value of $200per year at 5% for 5 years annuity.

Answer 10

c)

Summary Introduction

To compute: The present value of $400 per year at 0% for 5 years annuity.

Answer 11

c)

Summary Introduction

To compute: The present value of $400 per year at 0% for 5 years annuity.

Answer 12

d)

Summary Introduction

To compute: The present value of annuity due for the above three cases.

Answer 13

d)

Summary Introduction

To compute: The present value of annuity due for the above three cases.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 4 - Prob. 2Q Ch. 4 - An annuity is defined as a series of payments of a...Ch. 4 - If a firm’s earnings per share grew from $1 to $2...Ch. 4 - Prob. 5Q Ch. 4 - If you deposit 10,000 in a bank account that pays...Ch. 4 - What is the present value of a security that will...Ch. 4 - Your parents will retire in 18 years. They...Ch. 4 - Prob. 4P Ch. 4 - You have $42,180.53 in a brokerage account, and...Ch. 4 - What is the future value of a 7%, 5-year ordinary...

The present value of $400 per year at 10 % for 10 years annuity .

Solution Summary: The author explains how to compute the present value of annuity due for the above three cases.

To compute: The present value of $400 per year at 10 % for 10 years annuity.

To compute: The present value of $200per year at 5% for 5 years annuity.

To compute: The present value of $400 per year at 0% for 5 years annuity.

To compute: The present value of annuity due for the above three cases.

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Chapter 4 Solutions