14 Calculate the term of each annuity:Future ValuePresent ValueSize ofPaymenta. $0$8,500$675b. $23,500$0$491.25c. $0$962$100d. $85,000$0$2,500Interest Rate10.75%8.25%10.00%13.00%Payment andConversionPeriod3 months1 month1 week6 monthsTerm (N)????

Introduction. Annuity A series of fixed income in an equal time interval is called an annuity.

14 Calculate the term of each annuity: Future Value Present Value Size of Payment a. So $8,500 $675 b. $23,500 50 $491.25 c. $0 $962 $100 d. $85,000 50 $2,500 Interest Rate 10.75% 8.25% 10.00% 13.00% Payment and Conversion Period 3 months 1 month 1 week 6 months Term (N) ? ? ? ?

14 Calculate the term of each annuity: Future Value Present Value Size of Payment a. So $8,500 $675 b. $23,500 50 $491.25 c. $0 $962 $100 d. $85,000 50 $2,500 Interest Rate 10.75% 8.25% 10.00% 13.00% Payment and Conversion Period 3 months 1 month 1 week 6 months Term (N) ? ? ? ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

14 Calculate the term of each annuity:
Future Value
Present Value
Size of
Payment
a. $0
$8,500
$675
b. $23,500
$0
$491.25
c. $0
$962
$100
d. $85,000
$0
$2,500
Interest Rate
10.75%
8.25%
10.00%
13.00%
Payment and
Conversion
Period
3 months
1 month
1 week
6 months
Term (N)
?
?
?
?

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