You want to invest in an annuity that will pay you $11,400 per year for the first 8 years and $1,000 per month for the last 6 years. If the annuity earns 3.25% compounded annually for the first 8 years and 5.1% compounded monthly for the remaining 6 years, what would be the amount of your initial investment? Enter the appropriate values in the blanks below, round answers to two decimal places. Initial Balance |<---- N = P/Y= PV = PMT= FV = 8 years Intermediate Balance A A/ 6 years N = P/Y= A/ A/ A FV = PV = PMT= Final Balance ->I N
You want to invest in an annuity that will pay you $11,400 per year for the first 8 years and $1,000 per month for the last 6 years. If the annuity earns 3.25% compounded annually for the first 8 years and 5.1% compounded monthly for the remaining 6 years, what would be the amount of your initial investment? Enter the appropriate values in the blanks below, round answers to two decimal places. Initial Balance |<---- N = P/Y= PV = PMT= FV = 8 years Intermediate Balance A A/ 6 years N = P/Y= A/ A/ A FV = PV = PMT= Final Balance ->I N
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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Transcribed Image Text:You want to invest in an annuity that will pay you $11,400 per year for the first 8 years and
$1,000 per month for the last 6 years. If the annuity earns 3.25% compounded annually for
the first 8 years and 5.1% compounded monthly for the remaining 6 years, what would be the
amount of your initial investment?
Enter the appropriate values in the blanks below, round answers to two decimal places.
Initial
Balance
|<-
N =
P/Y=
PV =
PMT=
FV =
8 years
Intermediate
Balance
A/
6 years
N =
A/
A PV =
A PMT=
A/ FV =
P/Y=
Final
Balance
->I
N
A
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