Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 9, Problem 28P
Summary Introduction
To calculate: The present value of a 10-year
Introduction:
Present value:
The current value of an investment or asset is termed as its present value. It is calculated by discounting the
Annuity Due:
The annuity payment not paid straightaway at the beginning of each year is termed as the annuity due.
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If the present value of an ordinary, 6-year annuity is $8,800 and interest rates are 9.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)
PV = $_______.__
Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)
Annuity Payment
Annual Rate
Interest Compounded
Period Invested
Future Value of Annuity
1.
$3,100
8.0
%
Semiannually
9 years
$79,500.77
2.
6,100
10.0
%
Quarterly
5 years
3.
5,100
12.0
%
Annually
6 years
Calculate the future value of the following annuities, assuming each annuity payment is made at the end
of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s)
from the tables provided. Round your answers to 2 decimal places.)
1.
2.
3.
Annuity Annual
Payment Rate
$4,700 6.0 %
8.0 %
7,700
6,700 10.0 %
Show Transcribed Text
1.
2.
3.
Annuity Annual
Payment
Rate
Interest
Compounded
Quarterly
Annually
Semiannually
$ 5,700
Interest
Compounded
8.0 % Quarterly
10,700 11.0%
Annually
4,700 10.0 % Semiannually
Period
Invested
5 years
6 years
9 years
Calculate the present value of the following annuities, assuming each annuity payment is made at the end
of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s)
from the tables provided. Round your answers to 2 decimal places.)
$
Period
Invested
2 years
5 years
3 years
Future Value of
Annuity
172,892.28
Present Value of
Annuity
Chapter 9 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 9 - Prob. 1DQCh. 9 - How is the present value of a single sum related...Ch. 9 - Prob. 3DQCh. 9 - Does inflation have anything to do with making a...Ch. 9 - Adjust the annual formula for a future value of a...Ch. 9 - If, as an investor, you had a choice of daily,...Ch. 9 - What is a deferred annuity? (LO9-4)Ch. 9 - Prob. 8DQCh. 9 - Prob. 1PCh. 9 - Prob. 2P
Ch. 9 - a. What is the present value of $140,000 to be...Ch. 9 - If you invest $9,000 today, how much will you have...Ch. 9 - Prob. 6PCh. 9 - Your uncle offers you a choice of $105,000 in 10...Ch. 9 - Your father offers you a choice of $105,000 in 12...Ch. 9 - Prob. 9PCh. 9 - How much would you have to invest today to receive...Ch. 9 - If you invest $8,500 per period for the following...Ch. 9 - Prob. 12PCh. 9 - Mrs. Crawford will receive $7,600 a year for the...Ch. 9 - Phil Goode will receive $175,000 in 50 years. His...Ch. 9 - Sherwin Williams will receive $18,500 a year for...Ch. 9 - Carrie Tune will receive $19,500 for the next 20...Ch. 9 - The Clearinghouse Sweepstakes has just informed...Ch. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - At a growth (interest) rate of 10 percent...Ch. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Juan Garza invested $20,000 10 years ago at 12...Ch. 9 - Prob. 26PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - You need $28,974 at the end of 10 years, and your...Ch. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Del Monty will receive the following payments at...Ch. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Your younger sister, Linda, will start college in...
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