Suppose you are going to receive $12,500 per year for six years. The appropriate
ID: 2382846 • Letter: S
Question
Suppose you are going to receive $12,500 per year for six years. The appropriate interest rate is 7.4 percent.
What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Explanation / Answer
Suppose you are going to receive $12,500 per year for six years. The appropriate interest rate is 7.4 percent.
What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value = pv(rate,nper,pmt,fv,0)
Present value = pv(7.4%,6,12500,0,0)
Present value = $ 58,853.07
Answer
Present value $ 58,853.07
What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value = pv(rate,nper,pmt,fv,1)
Present value = pv(7.4%,6,12500,0,1)
Present value = $ 63,208.19
Answer
Present value $ 63,208.19
Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Future value = fv(rate,nper,pmt,pv,0)
Future value = fv(7.4%,6,12500,0,0)
Future value = $ 90,322.26
Answer
Future value $ 90,322.26
Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Future value = fv(rate,nper,pmt,pv,1)
Future value = fv(7.4%,6,12500,0,1)
Future value = $ 97,006.10
Answer
Future value $ 97,006.10
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.