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$5,000 received each year for 5 years on the last day of each year if your inves

ID: 2814707 • Letter: #

Question

$5,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$5,000 received each quarter for 5 years on the last day of each quarter if your investments pay 6 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$5,000 received each year for 5 years on the first day of each year if your investments pay 6 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$5,000 received each quarter for 5 years on the first day of each quarter if your investments pay 6 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$5,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer


Set financial calculator on END mode for a & b part:

Using financial calculator BA II Plus - Input details:

a.

I/Y = Rate or yield / frequency of payment in a year = 6/1 =

6.000000

PMT =

-$5,000.00

N = Number of years x frequency = 5 x 1

5.00

FV = Future Value =

$0.00

CPT > PV = Present value =

$21,061.82

Using financial calculator BA II Plus - Input details:

b.

I/Y = Rate or yield / frequency of payment in a year = 6/4 =

1.500000

PMT =

-$5,000.00

N = Number of years x frequency = 5 x 4 =

20.00

FV = Future Value =

$0.00

CPT > PV = Present value =

$85,843.19

Set financial calculator on BEGIN mode for c & d part:

Using financial calculator BA II Plus - Input details:

c.

I/Y = Rate or yield / frequency of payment in a year = 6/1 =

6.000000

PMT =

-$5,000.00

N = Number of years x frequency = 5 x 1 =

5.00

FV = Future Value =

$0.00

CPT > PV = Present value =

$22,325.53

Using financial calculator BA II Plus - Input details:

d.

I/Y = Rate or yield / frequency of payment in a year = 6/4 =

1.500000

PMT =

-$5,000.00

N = Number of years x frequency = 5 x 4 =

20.00

FV = Future Value =

$0.00

CPT > PV = Present value =

$87,130.84

Using financial calculator BA II Plus - Input details:

a.

I/Y = Rate or yield / frequency of payment in a year = 6/1 =

6.000000

PMT =

-$5,000.00

N = Number of years x frequency = 5 x 1

5.00

FV = Future Value =

$0.00

CPT > PV = Present value =

$21,061.82