Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:A 15-year annuity pays $1,750 per month, and payments are made at the end of each
month. If the APR is 9 percent compounded monthly for the first seven years, and APR of
6 percent compounded monthly thereafter, what is the value of the annuity today? (Do
not round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Present value
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- A 10-year annuity pays $1,850 per month, and payments are made at the end of each month. If the APR is 12 percent compounded monthly for the first five years, and APR of 8 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g... 32.16.) Present valuearrow_forwardWhat's the future value of a 3-year $500 ordinary annuity, if the quoted interest rate is 11.35%, compounded semiannually? Note that the annuity payments are annual but that the compounding is semiannual. Round your final answer to 2 decimal places. $1,729.62 O $1.757.72 $1,888.60 O $1,777.10 O $1.676.69arrow_forwardWhat is the accumulated value after five years of payments of $20000 made at the beginning of each year if interest is 7% compounded quarterly? Please, note that I think this is a question of Annuities, and I believe time would be 20 (5 years compounded quarterly -> 4x a year) Isn't this a General Annuity Due question, where payments are made at the beginning of the payment intervals, and the payment and compounding frequencies are unequal.arrow_forward
- If the present value of an ordinary, 6-year annuity is $6400 and interest rates are 2.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value $arrow_forwardPlease help me with this and provide the working. thank youarrow_forwardThe compounding periods and the payment periods are the same for an annuity and for an amortization. Determine the present value of the annuity that will pay the given periodic payments. (Round your final answer to two decimal places.) Periodic payments of $2400 annually for 13 years. The interest is 4% compounded annually.arrow_forward
- What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment occurring at the end of year 10 ( that is, ten 1,600 payments occurring at the end of year 10 through year 19), given a discount rate of 9 percent?arrow_forwardIf you have a 13-year annuity paying $305 quarterly in 5 years when interest is 3.25% compounded semi-annually, what is the number of missed payments? Treat the deferred annuity as an ordinary annuity with the first annuity payment at the 5-year mark.arrow_forwardFind the present value of an ordinary annuity which has payments of $1400 per year for 11 years at 6% compounded annually. The present value is $ (Round to the nearest cent.)arrow_forward
- A 5-year annuity-due has semiannual payments with the first payment starting two years from now. The first payment is 800 and decreases by 50 per payment thereafter. Calculate the present value of this annuity, given that the nominal rate of interest compounded semiannually is 8%arrow_forwardA 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_forwardAn annuity is paid half-yearly in arrears at a rate of 9000 per annum, for 11 years. The rate of interest is 3% per quarter-year effective. Calculate the accumulation of the annuity at the end of 11 years. Give your answer to two decimal places.arrow_forward
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