$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
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