Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Suppose you are going to receive $10,000 per year for 5 years. The appropriate interest rate is 11%. What is the present value of the payments if they are in the form of an ordinary
annuity ?
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- If you are expecting a settlement of $10000 at the end of each year for five years, how much this annuity is worth today if the interest rate is 8%?arrow_forwardFind the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R= $9000, 10% interest compounded annually for 5 years What is the future value of the ordinary annuity? (Round to the nearest cent.)arrow_forwardIf the future value of an ordinary, 5-year annuity is $6,000 and interest rates are 8 percent, what's the future value of the same annuity due?arrow_forward
- An annuity pays $15 per year for 60 years. What is the future value of this annuity at the end of that 60years given that the discount rate is 7%?arrow_forwardIf the present value of an ordinary, 6- year annuity is $7,200 and interest rates are 7.5 percent, what's the present value of the same annuity due?arrow_forwardSuppose that a fixed-payment 15-year annuity has present value of Rs 2.5 million The annuity earns a guaranteed 9 percent annual return. If the payments are to begin at the end of current year, what is the annuity payment from this fixedpayment annuity?arrow_forward
- If the future value of an ordinary, 7-year annuity is $9,900 and interest rates are 9.0 percent, what’s the future value of the same annuity due?arrow_forwardYou are comparing two annuities with equal present values. The applicable discount rate is 7.25%. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year?arrow_forwardWhat is the present value of a 15 year annuity with the first payment of $45,000 (all payments are the same amount) in one year from now. Assume a discount rate of 8% and annual compounding.arrow_forward
- Suppose payments will be made for 7 1/4 years at the end of each month from an ordinary annuity earning interest at the rate of 3.25%/year compounded monthly. If the present value of the annuity is $41,000, what should be the size of each payment from the annuity? (Round your answer to the nearest cent.)$arrow_forwardIf the present day value of an ordinary 7 year annuity is 6500 and the interest rate is 7.5% what's the present value of the same annuity duearrow_forward
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