Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $3,200 under each of the following situations: Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. The payments are received at the end of each of the five years and interest is compounded annually. 2. The payments are received at the beginning of each of the five years and interest is compounded annually. 3. The payments are received at the end of each of the five years and interest is compounded quarterly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Deposit Date First payment Second payment Third payment Fourth payment Fifth payment The payments are received at the end of each of the five years and interest is compounded quarterly. Note: Round your final answers to nearest whole dollar amount. n= i= 3%✔ 4 3%✔ 8✔ 3% ✓ 12 3%✔ 16 ✔ 3%✔ 20✔ Answer is not complete. $ Deposit 3,200 $ 3,200 3,200 3,200 3,200 $ PV 102,938 x 102,938
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $3,200 under each of the following situations: Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. The payments are received at the end of each of the five years and interest is compounded annually. 2. The payments are received at the beginning of each of the five years and interest is compounded annually. 3. The payments are received at the end of each of the five years and interest is compounded quarterly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Deposit Date First payment Second payment Third payment Fourth payment Fifth payment The payments are received at the end of each of the five years and interest is compounded quarterly. Note: Round your final answers to nearest whole dollar amount. n= i= 3%✔ 4 3%✔ 8✔ 3% ✓ 12 3%✔ 16 ✔ 3%✔ 20✔ Answer is not complete. $ Deposit 3,200 $ 3,200 3,200 3,200 3,200 $ PV 102,938 x 102,938
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
Related questions
Question
Transcribed Image Text:Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $3,200 under each of the
following situations:
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1)
1. The payments are received at the end of each of the five years and interest is compounded annually.
2. The payments are received at the beginning of each of the five years and interest is compounded annually.
3. The payments are received at the end of each of the five years and interest is compounded quarterly.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
The payments are received at the end of each of the five years and interest is compounded quarterly.
Note: Round your final answers to nearest whole dollar amount.
Deposit Date
First payment
Second payment
Third payment
Fourth payment
Fifth payment
j=
3%
3%
3%
3%
3%
Required 3
33333
n=
4821
16
20
333
$
Deposit
3,200
3,200
3,200
3,200
3,200
$
S
PV
102,938
102,938
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education