Linda King invested $1000 four times a year in an annuity due at Midwest Investments for a period of 3 years at an interest rate of 8% compounded quarterly. Using the ordinary annuity table, calculate the total value of the annuity due at the end of the 3-year period. Ordinary annuity table: Compound sum of an annuity of $1 Period 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000 2.1100 2.1200 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.3421 3.3744 4 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.7097 4.7793 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.2278 6.3528 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 7.9129 8.1152 7 7.4343 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 9.7833 10.0890 8 8.5829 8.8923 9.2142 9.5491 9.8975 10.2598 10.6366 11.0285 11.4359 11.8594 12.2997 9. 9.7546 10.1591 10.5828 11.0265 11.4913 11.9780 12.4876 13.0210 13.5795 14.1640 14.7757 10 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 16.7220 17.5487

Linda King invested $1000 four times a year in an annuity due at Midwest Investments for a period of 3 years at an interest rate of 8% compounded quarterly. Using the ordinary annuity table, calculate the total value of the annuity due at the end of the 3-year period. Ordinary annuity table: Compound sum of an annuity of $1 Period 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000 2.1100 2.1200 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.3421 3.3744 4 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.7097 4.7793 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.2278 6.3528 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 7.9129 8.1152 7 7.4343 7.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 9.7833 10.0890 8 8.5829 8.8923 9.2142 9.5491 9.8975 10.2598 10.6366 11.0285 11.4359 11.8594 12.2997 9. 9.7546 10.1591 10.5828 11.0265 11.4913 11.9780 12.4876 13.0210 13.5795 14.1640 14.7757 10 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 16.7220 17.5487

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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Similar questions

Jim Wright invested $7500 twice a year in an annuity due at Pacific Securities Company for a period of 8 years at an interest rate of 4% compounded semiannually. Using the ordinary annuity table, calculate the total value of the annuity due at the end of the 8-year period.
K Calculate the total interest and principal portions for the series of monthly payments of $166.95 that occur during year 7, for an ordinary annuity of $13,500 with 8.5% interest compounded quarterly for 10 years. Round your answers to two decimal places. Principal Number Interest Number
If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 8.99% compounded annually, construct a balance sheet showing the interest earned during each year and the balance at the end of each year. Complete the balance sheet. Period Amount Interest Balance 1 $1000.00 2 $1000.00 3 $1000.00 4 $1000.00 $ $4 $1000.00 $4 $ (Round to the nearest cent as needed.)
Determine the nominal annual rate of interest of the following ordinary general annuity. Term Conversion Period Present Value Periodic Payment Payment Interval $4600 $787.91 1 year 9 years monthly The nominal annual rate of interest is (Round to two decimal places as needed.) % compounded monthly.
Construct an annuity table showing the deposits, interests, and balances for the saving plan below (compulsory to show the working steps to get the interest value): a) $350 is invested in an increasing annuity at the end of every 6 months for 3 years. The account pays 10.25% interest rate compounded semiannually. Period Beginning Interest Deposit Ending balance (Every 6 months) Balance 1 $0.00 $0.00 $350.00 $350.00 3 4 (Copy this table to your answer script)
None
.
Answer the subquestions below: a. Mr. Formento pays at the end of every month for a loan that charges 5% interest compounded quarterly. What type of annuity certain is this? b. Determine the amount after 5 years of a P1,500 deposit every end of 3 months in an account paying 12% compounded quarterly. c. how much should be invested at the end of every six months at 12%compounded quarterly in order to accumulate P50,000 after 6 years?
Present Value of an Annuity Determine the present value of $310,000 to be received at the end of each of four years, using an interest rate of 6%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year $fill in the blank 1 Second Year fill in the blank 2 Third Year fill in the blank 3 Fourth Year fill in the blank 4 Total present value $fill in the blank 5 b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.$fill in the blank 6 c. Why is the present value of the four $310,000 cash receipts less than the $1,240,000 to be received in the future?The present value is less due to..........................over the 4 years.
Find the deposit at the end of month needed for 14 years to provide for a perpetuity of $9900 monthly. The 1st perpetuity payment is made at the end 19 month after the last deposit, and interest changes from iz = 17.46 % to iz65 = 9.08 % on that date. Answer: 1610.13
Complete the ordinary annuity. Amount of payment = $12,100 Payment Payable = Semiannually Years = 9 Interest Rate = 6%

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