are ? k of &, Deposits of $100 are made at the end of each calendar year from 2014 through 2019inclusive. The resulting fund is to be used to buy a perpetuity with annual payments following thepattern X, 4X, 7X, 10X,... with the first payment on December 31, 2021.If the anmual effective rate of interest is 5%, find X.A. 0.558B. 0.567C. 0.576D. 0.585E. 0.594

Time value It tells value received today has more value than that of receiving the exact value later…

Answered: are ? k of &, Deposits of $100 are made…

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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(please answer both questions) At an annual effective rate of interest i=3%, find the PV of a perpetuity-immediate with annual payments of 30, 40, 50, 60, *** a) 9520 b) 10800 c) 11254 d) 12111 e) 12500 Find the PV of a perpetuity-immediate with payments of 1 in year 1, 2 in year 2, 3 in year 3,..., and 20 in year 20. After 20, the payments remain constant at 20. The annual effective rate of interest i = 4%. a) 280.75 b) 319.14 c) 353.35 d) 427.01 e) 450.00
A fund is created by making equal monthly deposits of P4,000 at 9% converted monthly for half a year. Find the following: 1. the sum after half a year2. periodic depositChoices a. 0.75b. 0.0075c. 6d. 1/2e. P24, 454.53f. P16, 180.90g. P4,000.00
You deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year 15. At an interest rate of 15% per year, determine the annual worth equivalent through year 1 to 15. Select one: O a. 4540.89 O b. 10282.48 c. 9862.73 O d. 6137.27 O e. 5717.52
Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $1,200,000, r = 4.9%, compounded quarterly for 45 years $
Ques 15 and 16
Use the sinking fund formula shown to the right to determine the monthly payment needed to accumulate $560,000 with 9% interest are compounded monthly for 31 years. p=Arn1+rnnt−1 The monthly invested payment is $
Gogg
Q.30.
3. Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. FU $13,690 to be accumulated in 3 years; quarterly payments of $1025 The interest rate needed is approximately %. (Type an integer or decimal rounded to two decimal places as needed.)
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $49,000; money earns 4% compounded semiannually for 13.5 years
A man bought an eapt casting P300k payable in 12 quarter payments with i = 24%, determine installment of payment is made: (a) at the end of each period b) at the beginning of each period What would be its corresponding future value of the annuity?
Find the present value and the amount of the annuity at the specified interest rate; Php 200 quarterly for 19 ½ years ; at (0.045, m = 4) a.) 16 224 and 26 033 b.) 10 349 and 24 767 c.) 9 032 and 22 602 d.) 8 915 and 10 349

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