Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.. a. $400 per year for 14 years at 8%. $ b. $200 per year for 7 years at 4%. $ c. $900 per year for 7 years at 0%.
Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.. a. $400 per year for 14 years at 8%. $ b. $200 per year for 7 years at 4%. $ c. $900 per year for 7 years at 0%.
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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Transcribed Image Text:Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.
a. $400 per year for 14 years at 8%.
$
b. $200 per year for 7 years at 4%.
$
c. $900 per year for 7 years at 0%.
$
d. Rework previous parts assuming they are annuities due.
Present value of $400 per year for 14 years at 8%: $
Present value of $200 per year for 7 years at 4%: $
Present value of $900 per year for 7 years at 0%: $
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