Using Technological Tools: Present Value of an Annuity - Knowledge CheckKnowledge CheckYou need cash of $5,000 to be received each year for 4 years beginning one year from now to attend college. Your discount rate is8% compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the present value of theamounts to be received? (Round present value answer to two decimal places (e.g., 52.75).)Inputs?N/ACalculator KeysNTPVPMTFVPresent value$

The present value (PV) of the amounts to be received is $16,560.63 (Calculator inputs are: N = 4, I…

Answered: Using Technological Tools: Present…

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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If you were to put $1,000 in the bank each year for the next 10 years at 6% interest, which table would you use to find the ending balance in your account? Group of answer choices Future value of $1 Present value of an annuity of $1 Future value of an annuity of $1 Present value of $1
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Show Solution. Topic: Ordinary Simple Annuity 4. How many monthly payments of P1,500 must be deposited in the bank to accumulate P160,000 if the interest is earned at 10.8% compounded monthly? How much would be the first payment if it is made 1 month after the last P1,500 deposit? Reference: https://drive.google.com/file/d/1RRH-L4a9obdhvntFfXru03YHOb6pDskp/view?usp=sharing
ook ences Chris Seals has just given an insurance company $62,525. In return, she will receive an annuity of $7,458 for 12 years. a. At what rate of return must the insurance company invest this $62,525 to make the annual payments? (Use a Financial calculator to arrive at the answers. Round the final answer to 3 decimal places.) Rate of return b. What rate of return is required if the annuity is payable at the beginning of each year? (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Rate of return
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