EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 4, Problem 15PROB
Summary Introduction
The annual cash flows for year 1 is $500; year 2 is $400; and year 3 is $300. The
Present value of an annuity due is the current value of future payment or the present value of a series of future periodic payments made at the beginning of each payment period.
Here,
The present value is “PV”.
The annual payment on investment is “PMT”.
The interest rate is “r”.
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If you were able to earn interest at 3% and you started with $100, how much would you have after 3 years?*
$91.51
$109.27
$291.26
$103.00
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2. The formula for calculating future value (FV) is*
FV = PV/(1+r)^n
FV = PV/(1+r)*n
FV = PV x (1+r)^n
FV = PV x (1+r)*n
Dividend???
soln
Chapter 4 Solutions
EBK CFIN
Ch. 4 - Prob. 1PROBCh. 4 - Prob. 2PROBCh. 4 - Prob. 3PROBCh. 4 - Prob. 4PROBCh. 4 - Prob. 5PROBCh. 4 - Prob. 6PROBCh. 4 - Prob. 7PROBCh. 4 - Prob. 8PROBCh. 4 - Prob. 9PROBCh. 4 - Prob. 10PROB
Ch. 4 - Prob. 11PROBCh. 4 - Prob. 12PROBCh. 4 - Prob. 13PROBCh. 4 - Prob. 14PROBCh. 4 - Prob. 15PROBCh. 4 - Prob. 16PROBCh. 4 - Prob. 17PROBCh. 4 - Prob. 18PROBCh. 4 - Prob. 19PROBCh. 4 - Prob. 20PROBCh. 4 - Prob. 21PROBCh. 4 - Prob. 22PROBCh. 4 - Prob. 23PROBCh. 4 - Prob. 24PROBCh. 4 - Prob. 25PROB
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