1(1+r)"3. Present Value: P = FV-or P = F(1+i) -na) Find the present value of P8,000 due in four years at 8% compoundedsemi-annuallyb) P22,500 is due in 6 years at 12% compounded annually. Determinethe present valuec)Find the present value of each of the following:aa. P28,300, 8% every 6 months for 5 yearsbb. P27,500, 12% monthly. Terms, 3 years and 7 monthscc. P83,900, 10% quarterly, Terms, 6 years and 9 monthsdd. P71,520, 7% semi-annual for 12 yearsee. 68,900, 6% annually for 15 years.

HONOR CODE: Since you have posted a question with multiple sub-parts, we will provide the solution…

(1+r)" or P = F(1+i) -n a) Find the present value of P8,000 due in four years at semi-annually b) P22,500 is due in 6 years at 12% compounded annua the present value c) Find the present value of each of the following: 3. Present Value: P = aa. P28,300, 8% every 6 months for 5 years bb. P27,500, 12% monthly. Terms, 3 years and cc P83 900 10% quarterly Terms 6 years and

(1+r)" or P = F(1+i) -n a) Find the present value of P8,000 due in four years at semi-annually b) P22,500 is due in 6 years at 12% compounded annua the present value c) Find the present value of each of the following: 3. Present Value: P = aa. P28,300, 8% every 6 months for 5 years bb. P27,500, 12% monthly. Terms, 3 years and cc P83 900 10% quarterly Terms 6 years and

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

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Similar questions

If $2500 were invested for 5 years at 10% nominal interest compounded daily, what would be the future amount? Select one: a. $4121.73 b. $6521.73 c. $3121.73 d. $5121.73
What will be the future value of $5 000 invested for six years at 8% per annum compounded annually? Select one: a. $7 543.46 b. $7 923.37 c. $7 934.37 d. $6 532.81
Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t years. (Use a 365-day year. Round your answer to the nearest cent.) P = $43,000, r = 9 3/4 % t = 9, compounded quarterly A = $
2. Future Value: FV = PV(1+r)” a) P10,600 invested at 12% compounded semi-annually for 5 years b) Accumulate P13,700 at 12% compounded monthly for 6 years Find the amount and interest of P18,600 invested for 5 years and 6 months at the rate of 18% compounded: c) aa). monthly bb). semi-annually cc). quarterly d) d. Find the amount of 32,100 invested for 4 years and 3 months at 18% compounded: aa). monthly bb). quarterly
1. A lump sum of $30,000 is invested at 6% compounded monthly for 15 years. For 15 years it then pays out a payment at the end of every month while earning 5.4% compounded monthly. What is the payment amount of the annuity? Follow the steps below. a. Draw a timeline HERE. b. Identify the following values: CY = PY = N (number of compounds) = N (number of payments) = i for accumulation phase = i for annuity payment phase = c. Calculate the accumulation value of PV d. Then, using the value at 15 years you can solve for the annuity payment amount (this is the answer to the question).
What will be the future value of $5 000 invested for six years at 8% per annum compounded quarterly? Select one: a. $6 532.81 b. $7 923.37 c. $7 934.37 d. $8 042.19
If money is worth 5% compounded semi-annually, find the present value of a sequence of 12 semi-annually payments of 500 each, the first of which is due to the end of 4 ½ years. Calculate it manually and show complete solution and formula used. ANS. P 4209.51
1- What is the present value of $4000 to be received in 6 years, if the interest rate is 5% p.a., compounding monthly? a. $2965 b. $2985 c. $2865 d. $2800
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