Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Estimate the interest earned by an
i) 2 years: _____
ii) 14 years: _____
iii) 22 years: _____
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- 11. For each annuity, calculate the future value and the interest earned. Rate of Compound Regular Interest Compounding Payment per Year Period Time a) $2500 per year 7.6% annually 12 years b) $500 every 6 months 7.2% semi-annually 9.5 years c) $2500 per quarter 4.3% quarterly 3 yearsarrow_forwardFind the term of the following ordinary general annuity. State your answer in years and months (from 0 to 11 months). Payment Interval Present Periodic Interest Compounding Period Value Payment Rate $9300 $355 month 7% quarterly The term of the annuity is year(s) and month(s).arrow_forwardFind the future value of the ordinary annuity. PMT= $2500, i = 7.4% interest compounded quarterly for 15 years A. $270,775.36 B. $405,910.50 C. $64,792.52 D. $398,537.55arrow_forward
- An annuity-immediate has 28 payments of $200 per period. The effective rate of interest per period is 6% for the first 12 periods and 3% for the following 16 periods. (A) Find the accumulated value of the annuity. Round your answer to 2 decimal places. (B) Find the present value of the annuity. Round your answer to 2 decimal places.arrow_forwardGo.4arrow_forwardEstimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream: Number of Payments or Years 10 19 25 80 Annual Interest Rate % (Round to two decimal places.) % (Round to two decimal places.) % (Round to two decimal places.) % (Round to two decimal places.) Future Value $0.00 $12,286.30 $0.00 $1,435,078.21 C Annuity Present Value $580.00 $444.01 $1,985.57 $450.00 $2,298.49 $0.00 $37,000.00 $0.00arrow_forward
- A perpetuity makes its first annual payment of $110 exactly 17 years from today. The discount rate is 6.1% per annum compounded annually. 1) What is the present value of this perpetuity valued at exactly Year 13? (Round your answer to the nearest cent) 2) What is the present value of this perpetuity valued at exactly Year 0? (Round your answer to the nearest cent)arrow_forwardUse the ordinary annuity formula shown to the right to determine the accumulated amount in the annuity. $700 invested monthly for 40 years at a 4.0% interest rate compounded monthly A=p1+rnn•t−1rn The accumulated amount will bearrow_forwardFind the future value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $1675 1 year 13 years 8% quarterlyarrow_forward
- Find the deposit at the end of month needed for 14 years to provide for a perpetuity of $9900 monthly. The 1st perpetuity payment is made at the end 19 month after the last deposit, and interest changes from iz = 17.46 % to iz65 = 9.08 % on that date. Answer: 1610.13arrow_forward,man.1arrow_forward. Find the future value of the following ordinary annuity. Periodic Payment - 1775 Payment Interval - 1 month Term -11 years Interest Rate - 8% Conversion Period - semi- annually The future value is $ ______?arrow_forward
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