Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Please show working. please answer a, b, c and d Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. a. An initial $300 compounded for 1 year at 7%. b. An initial $300 compounded for 2 years at 7%. c. The present value of $300 due in 1 year at a discount rate of 7%. d. The present value of $300 due in 2 years at a discount rate of 7%.arrow_forwardNow rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Present value of $800 per year for 10 years at 14%: $ Present value of $400 per year for 5 years at 7%: $ Present value of $800 per year for 5 years at 0%: $arrow_forwardFind 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. $900 per year for 12 years at 6%. $ b. $450 per year for 6 years at 3%. $ c. $700 per year for 6 years at 0%. $ d. Rework previous parts assuming they are annuities due. Present value of $900 per year for 12 years at 6%: $ Present value of $450 per year for 6 years at 3%: $ Present value of $700 per year for 6 years at 0%: $arrow_forward
- What's the future value of $20,000 after 8 years if the appropriate interest rate is 5.75%, compounded annually?Round your answer to two decimal places. For example, if your answer is $345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box provided. Group of answer choicesarrow_forwardCan someone help me please?arrow_forwardAn investment will pay you $43,000 in 10 years. If the appropriate discount rate is 7 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))arrow_forward
- Find the following values. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. a. An initial $800 compounded for 10 years at 3%. $ b. An initial $800 compounded for 10 years at 6%. $ c. The present value of $800 due in 10 years at 3%. $ d. The present value of $2,855 due in 10 years at 6% and 3%. Present value at 6%: $ Present value at 3%: $arrow_forwardusing computation solution (not excel)arrow_forwardFind the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. a. An initial $800 compounded for 1 year at 9%. $ b. An initial $800 compounded for 2 years at 9%. $ c. The present value of $800 due in 1 year at a discount rate of 9%. $ d. The present value of $800 due in 2 years at a discount rate of 9%. $arrow_forward
- Find the future values of the following ordinary annuities: a. FV of $600 paid each 6 months for 5 years at a nominal rate of 6% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. FV of $300 paid each 3 months for 5 years at a nominal rate of 6% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? 819000.0 The annuity in part (b) is compounded more frequently, therefore, more interest is earned on previously-earned interest. Varrow_forwardRaghubhaiarrow_forwardFind the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $300 per year for 8 years at 10%. $ $150 per year for 4 years at 5%. $ $200 per year for 4 years at 0%. $ Rework parts a, b, and c assuming they are annuities due. Future value of $300 per year for 8 years at 10%: $ Future value of $150 per year for 4 years at 5%: $ Future value of $200 per year for 4 years at 0%: $arrow_forward
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