Janice and Terry Van Dyke have decided to establish a quarterly ordinary annuity of $2,000 for the next ten years at 12% annual interest compounded quarterly. Howmuch should they invest in a lump sum now to provide the stream of payments?Click the icon to view the present value of a $1.00 ordinary annuity table.They should invest $(Round to the nearest cent as needed.)

This is present value of annuity problem and we have to find out present value FACTOR and find out…

'an Dyke have decided to establish a quarterly ordinary annuity of $2,000 for the ne invest in a lump sum now to provide the stream of payments? to view the present value of a S1.00 ordinary annuity table.

'an Dyke have decided to establish a quarterly ordinary annuity of $2,000 for the ne invest in a lump sum now to provide the stream of payments? to view the present value of a S1.00 ordinary annuity table.

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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Janice and Terry Van Dyke have decided to establish a quarterly ordinary annuity of $2,000 for the next ten years at 12% annual interest compounded quarterly. How
much should they invest in a lump sum now to provide the stream of payments?
Click the icon to view the present value of a $1.00 ordinary annuity table.
They should invest $
(Round to the nearest cent as needed.)

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1. Find the amount of an ordinary annuity consisting of 24 monthly payments of $150 that earn interest at 10% per year compounded monthly. Round to the nearest cent. b. Find the present value of an ordinary annuity consisting of 18 monthly payments of $150each and earning interest at 5% per year compounded monthly. Round to the nearest cent. c. True or False: The Annuities we deal with in this section are: Certain, Ordinary, and complex.
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Consider the following case Amount of Annuity: $26,000 Interest Rate: 12% Period of years: 12 Calculate the present value of the annuity assuming that is it a oridinary annuity and a annuity due.
H3. Show proper step by step calculation
(Present value of a perpetuity) At a discount rate of 13.00%, find the present value of a perpetual payment of $1,500 per year. If the discount rate were lowered to 6.50%, half the initial rate, what would be the value of the perpetuity? a. If the discount rate were 13.00%, the present value of the perpetuity is $ (Round to the nearest cent.) b. If the discount rate were lowered to 6.50%, half the initial rate, the present value of the perpetuity is $ (Round to the nearest cent.)
Annuity Present Value Inputs Payment $80 Discount Rate/Period 6% Number of Periods Present Value using a Time Line Period 1 2 4 Cash Flows 80 80 80 80 80 Present Value of Each Cash Flow 75.4717 71.19972 67.16954 63.36749 59.78065 Present Value Annuity Present Value using the Formula Present Value Annuity Present Value using the PV Function Present Value
May I ask for an explanation and solution to the question for a better understanding. Thank you! 5. What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a 7.5% semi-annual interest rate? a. P1,161.68 b. P1,348.48 c. P3,828.34 d. P287.13
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