How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for 12.5 years if the money used to purchase the annuity can earn 7.5% compounded semiannually? (Do not round Intermedlate calculations and round your fnal onswer to 2 declmal places.) Cost $32086.4

How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for 12.5 years if the money used to purchase the annuity can earn 7.5% compounded semiannually? (Do not round Intermedlate calculations and round your fnal onswer to 2 declmal places.) Cost $32086.4

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 11P

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Concept explainers

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.

Question

How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for 12.5 years if the money used to
purchase the annuity can earn 7.5% compounded semiannually? (Do not round Intermedlate calculations and round your fnal
onswer to 2 declmal places.)
Cost
$32086.4
es
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A new loan at 9% compounded quarterly requires quarterly payments of $72788 for seven years.
Rounded to the nearest dollar, what amount was borrowed?
Amount
%24
135717

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