Compute the present values of the following annuities first assuming that payments are made on the last day of the period and thenassuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2decimal places. (e.g., 32.16))Present ValuePresent ValueInterest Rate(Payment made onlast day of period)(Payment made onfirst day of period)PaymentYears(Annual)748.098.14 %8,668.2614721,022.932470,412.5432

Answered: Image /qna-images/answer/7bff56f9-fae1-4b43-9d9c-aa397593588a.jpg

Answered: Compute the present values of the…

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

See similar textbooks

Similar questions

Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Payment $ 183 5,155 75,084 167,932 Years 13 8 5 9 Interest Rate (Annual) 12% 11 13 4 Future Value (Payment made on last day of period) 4 Future Value (Payment made on first day of period)
Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Future Value (Payment Payment Years Interest Rate (Annual) made on last day of period) $ 243 15 12 % 5,755 10 11 75,684 7 13 168,532 11 4 Future Value (Payment made on first day of period)
Choose the letter of the correct answer and write it on the space provided _____ 1. A sequence of payments made at equal (fixed) intervals or periods of time. A. Annuity C. Ordinary Annuity B. Annuity due D. Simple Annuity ______2. The amount of each payment. A. Payment interval C. Annuity Payment B. Periodic Payment D. Time payment ______3. It is time between the purchase of an annuity and the start of the payments for the deferred annuity. A. Period of deferral C. Payment interval B. Annuity payment D. Period of payment ______4. A type of annuity in which the payments are made at the end of each payment interval. A. Annuity due C. General Annuity D. Simple Annuity D. Ordinary Annuity ______5. Compounding quarterly means the interest period is A. every year C. every 6 months B. every 4 months D. every 3 months ______6. In a monthly payment of P2,000 for 5 years that will start 7 months from now, what will be the period of deferral? A. 7 B. 5 C. 4 D. 6 ______7. A loan is given an…
Annuities where the payments occur at the beginning of each time period arecalled refer to annuity streams with payments occurring at the end of each ine period. where O ordinary lor regular) annuities annuities due annuities due, ordinary (or regularl annuities O ute annuitie straight annuties straight annuities late aonuities
Fill in each blank so that the resulting statement is true. A/An . . is a sequence of equal payments made at equal time periods. Value of an annuity Annuity Principal Mortage
Find the following: a. total number of conversion period b. conversion period per year c. interest rate per conversion period d. principal e. compound interest
Annuities where the payments occur at the end of each time period are called whereas refer to annuity streams with payments occurring at the beginning of each time neriod
LETS START I. Matching type. Directions: Read each item carefully. Match Column A with the correct answer on Column B, write only the letter of answer on the blank provided. 1. An annuity where the payment interval is not the same as the a) Annuity b) Simple Annuity c) General Annuity interest period. 2. Type of annuity in which the payments are made at beginning - of each payment interval. d) Ordinary Annuity (or Annuity Immediate) e) Annuity Due 3. An annuity where the payment interval is the same as the interest period. - 4. An annuity in which payments begin and end at definite times. 5. Sum of present values of all the payments to be made during f) Annuity Certain g) Contingent Annuity the entire term of the annuity. h) Term of an Annuity (t) 6. Time between the first payment interval and last payment i) Regular or Periodic interval. Payment (P) 7. An annuity in which the payments extend over an indefinite (or j) Amount (Future Value) of indeterminate) length of time. 8. Sum of…
Find the following: a. interest rate per conversion period b. future amount c. compound interest d. conversion period per year e. total number of conversion period
Calculate the present value of the following annulties, 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 S1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) \table[[, \table[[Annuity], [Payment]], \table [[ Annual], [Rate]], \table[[Interest], [Compounded]], \table [[Period], [Invested]], \table [[Present Value of], [ Annuity]]], [1., $5,000, 7.0%, Semiannually,3 years,], [2., 10, 000, 8.0%, Quarterly,2 years, ], [3., 4,000, 10.0 %, Annually,5 years,]]
For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Annuity Amount i = n = 1. ? $2,400 8% 5 2. 533,082 140,000 ? 4 3. 583,150 180,000 9% ? 4. 530,000 75,502 ? 8 5. 235,000 ? 10% 4
For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS