Am. 111. Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity:Number ofPayments orAnnualInterest RatePresent ValueAnnuityFuture ValueYears89%0$173.75(Round to the nearest cent.)Data table(Click on the following icon in order to copy its contents into a spreadsheet.)Number ofPayments orAnnualInterest RatePresent ValueAnnuityFuture ValueYears89%0$173.75?1615%0$1,439.77?262.5%0$739.53?3201%0$463.28?PrintDone-

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Answered: Future value of an ordinary annuity.…

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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Present value of an annuity Consider the following case. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Amount of annuity Interest rate Period (years) $26,000 9% 4 a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity—ordinary or annuity due—is preferable? Explain why.
Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here 9 in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity Interest rate Deposit period (years) $6,000 8% 10 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable as an investment? Explain why. ..... a. (1) The future value of the ordinary annuity is $ (Round to the nearest cent.) (2) The future value of the annuity due is $ (Round to the nearest cent.) b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity is preferable as an investment? (Select the best answer below.) Ordinary annuity, because it yields a greater future value. Annuity due, because it yields a greater future value.
Chapter 4, Question 1.
Present value of an annuity Consider the following case. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Interest rate Period (years) 7% 14 Amount of annuity $42,000 a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a (1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable? Explain why. The present value of the ordinary annuity is $. (Round to the nearest cent.) (…)
Chapter 4, Question 2. Please see attached. The second image is a similar question with answers
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Calculate the present value of the following annulties, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of S1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) \table[[, \table[[Annuity], [Payment]], \table [[ Annual], [Rate]], \table[[Interest], [Compounded]], \table [[Period], [Invested]], \table [[Present Value of], [ Annuity]]], [1., $5,000, 7.0%, Semiannually,3 years,], [2., 10, 000, 8.0%, Quarterly,2 years, ], [3., 4,000, 10.0 %, Annually,5 years,]]
Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity $5,000 Interest rate 6% Deposit period (years) 7 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due is preferable as an investment? Explain why.
Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity $4,000 Interest rate 5% Deposit period (years) 11 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable as an investment? Explain why. a. (1) The future value of the ordinary annuity is $. (Round to the nearest cent.) C
Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity:
Fill in each blank so that the resulting statement is true. A/An . . is a sequence of equal payments made at equal time periods. Value of an annuity Annuity Principal Mortage
Calculate the future value of an annuity, with case A being an ordinary annuity and case B being an annuity due. SEE PIC for NUMBER DETAILS

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