Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 5, Problem 21SP
Summary Introduction
To determine: The
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(Compound annuity) What is the accumulation sum of the following streams of payments?
a.$500 a yera for 10 years compounded annually at 5 percent
b.$100 a year for 5 years compounded annually at 10 percent
c.$35 a year for 7 years compounded annually at 7 percent
d.$25 a year for 3 years compounded annually at 2 percent
(Compound annuity) What is the accumulated sum of each of the following streams of payments?
a.
$500 a year for 10 years compounded annually at 10 percent.
b.
$112 a year for 6 years compounded annually at 8 percent.
K
(Compound annuity) What is the accumulated sum of each of the following streams of payments?
a. $500 a year for 8 years compounded annually at 10 percent.
b. $104 a year for 7 years compounded annually at 9 percent.
c. $32 a year for 12 years compounded annually at 11percent.
d. $21 a year for 6 years compounded annually at 6 percent.
Chapter 5 Solutions
Foundations Of Finance
Ch. 5 - Prob. 1RQCh. 5 - The processes of discounting and compounding are...Ch. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 1SPCh. 5 - Prob. 2SPCh. 5 - Prob. 3SPCh. 5 - Prob. 4SPCh. 5 - Prob. 5SP
Ch. 5 - (Compound value) Stanford Simmons, who recently...Ch. 5 - (Future value) Sarah Wiggum would like to make a...Ch. 5 - Prob. 8SPCh. 5 - (Future value) Giancarlo Stanton hit 59 home runs...Ch. 5 - Prob. 10SPCh. 5 - Prob. 11SPCh. 5 - Prob. 12SPCh. 5 - Prob. 13SPCh. 5 - Prob. 14SPCh. 5 - Prob. 15SPCh. 5 - Prob. 16SPCh. 5 - Prob. 17SPCh. 5 - Prob. 18SPCh. 5 - Prob. 19SPCh. 5 - Prob. 20SPCh. 5 - Prob. 21SPCh. 5 - Prob. 22SPCh. 5 - Prob. 23SPCh. 5 - Prob. 24SPCh. 5 - (Solving for PMT of an annuity) To pay for your...Ch. 5 - Prob. 26SPCh. 5 - Prob. 27SPCh. 5 - (Loan amortization) On December 31, Beth Klemkosky...Ch. 5 - (Solving for r of an annuity) You lend a friend...Ch. 5 - Prob. 30SPCh. 5 - (Compound annuity) You plan on buying some...Ch. 5 - (Loan amortization) On December 31, Son-Nan Chen...Ch. 5 - (Loan amortization) To buy a new house you must...Ch. 5 - Prob. 34SPCh. 5 - Prob. 35SPCh. 5 - Prob. 36SPCh. 5 - Prob. 37SPCh. 5 - Prob. 38SPCh. 5 - (Compound interest uith nonannnal periods) a....Ch. 5 - (Compound interest with nonannual periods) After...Ch. 5 - Prob. 41SPCh. 5 - (Spreadsheet problem) To buy a new house you take...Ch. 5 - (Nonannual compounding using a calculator) Jesse...Ch. 5 - (Nonannual compounding using a calculator)...Ch. 5 - (Nonannual compounding using a calculator) Fords...Ch. 5 - Prob. 46SPCh. 5 - (Nonannual compounding using a calculator) Dennis...Ch. 5 - Prob. 48SPCh. 5 - (Calculating the effective annual rate) Youve just...Ch. 5 - Prob. 50SPCh. 5 - Prob. 51SPCh. 5 - (Present value) The Kumar Corporation is planning...Ch. 5 - (Perpetuities) What is the present value of the...Ch. 5 - (Complex present value) How much do you have to...Ch. 5 - (Complex present value) You would like to have...Ch. 5 - Prob. 56SPCh. 5 - Prob. 57SPCh. 5 - Prob. 58SPCh. 5 - Prob. 59SPCh. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Complex stream of cash flows) Roger Sterling has...Ch. 5 - (Future and present value using a calculator) In...Ch. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Prob. 5MCCh. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 11MC
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- Present value of an annuity) What is the present value of the following annuities? a. $2,400 a year for 10 years discounted back to the present at 11 percent. b. $90 a year for 3 years discounted back to the present at 9 percent. c. $290 a year for 12 years discounted back to the present at 12 percent. d. $500 a year for 6 years discounted back to the present at 5 percent. a. What is the present value of $2,400 a year for 10 years discounted back to the present at 11 percent? $nothing (Round to the nearest cent.)arrow_forwardFind the present value of the ordinary annuity: Payments of $450 made annually for 13 years at 6% compounded annually. a. $ 4182.75 b. $ 3772.71 c. $3982.28 d. $ 3983.71arrow_forwardFinancearrow_forward
- What is the present value of an ordinary annuity that pays $1,000 per year for 4 years, assuming the annual discount rate is 7 percent? a. $3,051.58 b. $762.90 c. $3,624.32 d. $3,738.32 e. $3,387.21arrow_forwardCalculate the present value of the following annuity streams: a. $8,000 received each year for five years on the last day of each year if your investments pay 6 percent compounded annually. b. $8,000 received each quarter for five years on the last day of each quarter if your investments pay 6 percent compounded quarterly. c. $8,000 received each year for five years on the first day of each year if your investments pay 6 percent compounded annually. d. $8,000 received each quarter for five years on the first day of each quarter if your investments pay 6 percent compounded quarterly. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimalarrow_forwardCalculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Annuity Payment Annual Rate Interest Compounded Period Invested Present Value of Annuity 1. $5,200 7.0 % Annually 5 years 2. 10,200 10.0 % Semiannually 3 years $4,264.21 3. 4,200 12.0 % Quarterly 2 yearsarrow_forward
- Complete this ordinary annuity: (Round your answer to the nearest cent.) Amount of Payment Payment Payable Years Interest Rate Value of Annuity $700 Quarterly 5 8%arrow_forwardII. Table Completion. Find the indicated value from the following ordinary annuity. Write your answer on the table. i Соmpounded Semiannually Quarterly Monthly Annually Quarterly Monthly Annually Semiannually Quarterly Monthly An R J 5 years 2,000 3, 578 7, 500 10% 11% 21 months 9% 15 months 10 years 3 years 60 months 970. 50 5% 10, 288.29 1.25% 0.25% 226, 263.49 53, 279. 32 6. 7% 4 8. 7, 136.39 8.5% 42 months 9. 10, 000 9 years 4% 10 9, 032. 70 1% 30 1234507arrow_forwardFind the future value and the present value of each ordinary annuity.arrow_forward
- b C d (D Find the future value of ordinary annuity of the following items: Sinking Fund Payment Payment Period every 6 months every year every 3 months every month every 3 months Time Period 8 years 14 years 5 years 1½ years 4 years Nominal Rate 10% 9% 12% 12% 16% Interest Compounded semi-annually annually quarterly monthly quarterly Future Value 500,000 2,500,000 15,000 40,000 187,000arrow_forwardIn the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.) $295 monthly at 5.8% to accumulate $25,000.arrow_forwardFind the amount of the ordinary annuity based on the information given. R = $10,500, 8% interest compounded semiannually for 8 years The amount of the ordinary annuity is (Round to the nearest dollar as needed.)arrow_forward
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