Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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EXERCISES
5.11 At 10 pcrcent annual interest rate, which of the following has the largest present
valuc:
u) $215 two years from now,
b) $100 after each of the next two ycars, or
c) $100 now and $95 two years from now?
5.12 Assuming a 10 pcrcent interest rate compounded continuously, what is the present
valuc of an annuity that pays $500 a year a) for the next five years, b) forever?
E 12
L...
Lunl. .L
....I... ...
--.:11 L-
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Transcribed Image Text:EXERCISES 5.11 At 10 pcrcent annual interest rate, which of the following has the largest present valuc: u) $215 two years from now, b) $100 after each of the next two ycars, or c) $100 now and $95 two years from now? 5.12 Assuming a 10 pcrcent interest rate compounded continuously, what is the present valuc of an annuity that pays $500 a year a) for the next five years, b) forever? E 12 L... Lunl. .L ....I... ... --.:11 L-
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