Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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ANS: $12,500
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- Find the amount of the ordinary annuity based on the information given. R = $10,500, 8% interest compounded semiannually for 8 years The amount of the ordinary annuity is (Round to the nearest dollar as needed.)arrow_forwardWhat is the present value of a $1,000 60-month annuity due, if r is 6% APR compounded monthly?arrow_forward1.16qarrow_forward
- What is the present worth of a perpetual annuity of $2,000 each payable at the end of each year? Assume money is worth 10% compound quartarrow_forwardWhat is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2 yea if money is worth 8% compounded semiannually?arrow_forwardWhat's the future value of a 3-year $500 ordinary annuity, if the quoted interest rate is 11.35%, compounded semiannually? Note that the annuity payments are annual but that the compounding is semiannual. Round your final answer to 2 decimal places. $1,729.62 O $1.757.72 $1,888.60 O $1,777.10 O $1.676.69arrow_forward
- If the present value of an ordinary, 6-year annuity is $6400 and interest rates are 2.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value $arrow_forwardFind the future value of an annuity in 16 years if you deposit $110 at the end of each compounding period into an account paying 3.00% compounded quarterly. O $9146.90 $ 8993.34 O $ 2217.26 O $ 8445.74arrow_forwardwhat;s the present value of perpetuity that pays % 1, 563 per year if the appropriate interest rate is 6.8% ?arrow_forward
- What is the future value of an annuity due that pays $550 per year for 18 years? Use an annual interest rate of 8.00%arrow_forward1. An annuity pays $5,000 per month for 5 years at an annual interest rate of 7.5% compounded monthly. Calculate the Present Value of this annuity.arrow_forwardUse the ordinary annuity formula shown to the right to determine the accumulated amount in the annuity. $700 invested monthly for 40 years at a 4.0% interest rate compounded monthly A=p1+rnn•t−1rn The accumulated amount will bearrow_forward
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