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

An annuity pays 8 at the end of each year for five years, starting atthe end of the 12th year. Determine the value of the annuity immediately beforethe first payment using an annual effective interest rate of 7%. which answer is correct in the pictures ie $15.58 or $32.80 (dont use exel in the calculation)
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.
An annuity-due makes payments of $15 every other year, with the first payment beginning immediately. The annuity-due makes ten payments. The nominal annual interest rate compounded semiannually is 5%. Calculate the present value of the annuity due. a. 100.0958 O b. 93.2775 O c. 66.7310 d. 124.3700 O e. 133.4620
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
blem #1: $10,000 is used to purchase an appropriate size annuity that has level annual payments for 18 years. The price of the annuity is based on an effective annual rate of 11.2%. As each payment is received, it is put into a fund that earns an effective annual rate of 7%. (a) Determine the accumulated value of the investment at the end of 18 years. (b) If the $10,000 were put into a fund that was to produce the same final value after 18 years, what annual effective rate would that fund have to offer?
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
An annuity-immediate has 21 payments of $800 per period. The effective rate of interest per period is 7% for the first 9 periods and 4% for the following 12 periods. (A) Find the accumulated value of the annuity. Round your answer to 2 decimal places.(B) Find the present value of the annuity. Round your answer to 2 decimal places.
Sally deposits $13, 036 in an account that earns 12% interest per annum. Calculate the interest payment on a 9 year simple interest deposit.
The proceeds of $493000 death benefit are left on deposit with an insurance company for 10 years at an annual effective interest rate of 18.04 %. The balance at the end of 10 years is paid to the beneficiary in 125 equal monthly payments of X, with the first payment made at the end of 10 month from the end of deposit. During the payout period, interest is credited at an annual effective interest rate of 12.89 %. Calculate X. Answer: 41544.44
Marissa converted an RRSP balance of $125,000 into an RRIF that will pay he $1,850 at the end of every month for 9 years. What is the nominal annual rate interest compounded semi-annually? 11.58% 0.97% 11.92% 5.79%
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

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