For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor. 1. In a future value of 1 table: Annual Rate Number of Years Invested Compounded (a) Rate of Interest a. 9% 12 Annually b. 8% 7 Quarterly C. 12% 16 Semiannually % % % (b) Number of Periods 2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to O decimal places, eg 45.) Annual Rate Number of Years Invested Number of Rents Involved Frequency of Rents (a) Rate of Interest (b) Number of Periods a. 10% 28 28 Annually % b. 10% 15 30 Semiannually % C. 8% 7 28 Quarterly %
For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor. 1. In a future value of 1 table: Annual Rate Number of Years Invested Compounded (a) Rate of Interest a. 9% 12 Annually b. 8% 7 Quarterly C. 12% 16 Semiannually % % % (b) Number of Periods 2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to O decimal places, eg 45.) Annual Rate Number of Years Invested Number of Rents Involved Frequency of Rents (a) Rate of Interest (b) Number of Periods a. 10% 28 28 Annually % b. 10% 15 30 Semiannually % C. 8% 7 28 Quarterly %
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:For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the
interest factor.
1. In a future value of 1 table:
Annual
Rate
Number of Years
Invested
Compounded
(a) Rate of Interest
a.
9%
12
Annually
b.
8%
7
Quarterly
C.
12%
16
Semiannually
%
%
%
(b) Number of Periods
2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to O decimal
places, e.g 45.)
Annual
Number of
Years
Rate
Invested
Number of
Rents
Involved
Frequency of
Rents
(a) Rate of Interest
(b) Number of Periods
a.
10%
28
28
Annually
b.
10%
15
30
Semiannually
%
%
8%
7
28
Quarterly
%
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