Consider a five-year fixed - payment security that has a present value of $1,500. If the annual rate of discount is 2 percent, the payment made at the end of each year is Question 9 Select one: a. $231.77. b. $288.24.c. S 300.00. d. $310.00.

Consider a five-year fixed - payment security that has a present value of $1,500. If the annual rate of discount is 2 percent, the payment made at the end of each year is Question 9 Select one: a. $231.77. b. $288.24.c. S 300.00. d. $310.00.

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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Consider a five-year fixed - payment security that has a
present value of $1,500. If the annual rate of discount is
2 percent, the payment made at the end of each year is
Question 9 Select one: a. S231.77. b. $288.24. c. S
300.00. d. $310.00.

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You purchased an annuity in which you deposit $100 a week at a fixed rate of 4% interest. What formula would you use to calculate its value at the end of 10 years? a = PMT(04/12, 12 120, 100) b. = FV * (04/12, 520, 100) c. = FV (.04/12, 10 * 52, -100) d = PMT(04/12, 12 120,,100)
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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Use Table 12-1 to calculate the future value (in $) of the annuity due. (Round your answer to the nearest cent.) AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity $500 every 6 months 11 10 semiannually
Investment X offers to pay you $5,800 per year for eight years, whereas Investment Y offers to pay you $7,900 per year for five years. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round the final answers to 2 decimal places.) Calculate the present value for Investment X and Y If the discount rate is 5%. Investment X Investment Y Present value Investment X Investment Y 14 Calculate the present value for Investment X and Y If the discount rate is 15%. Present value M PA
What is the Present Value (PV) of a 2-year $400 Annuity Due if the annual interest (discount) rate is 8%? Please draw a timeline to visualize the problem. Use "." to form a time interval, e.g. 0.................1.................2.................3 (calculate first sentence and provide timeline)
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