Question: 10. A) Using a handheld (5 button) financial calculator, compute the present value of $121 paid to you in 2 years, using an effective annual

10. A) Using a handheld (5 button) financial calculator, compute the present value of $121 paid to you in 2 years, using an effective annual discount rate (EAR) of 10.0%.

Enter your answer, in dollars and cents, in the answer-box below, as a positive value.

B)Using a handheld (5 button) financial calculator, compute the present value of a finite annuity-stream with equally-sized (g=0) payments.

The first payment is due in one year, and the subsequent seven payments (for a total of eight, occurring at times 1 to 8) are all $150 per year. Use an effective annual discount rate (EAR) of 6%.

C)Using a handheld (5 button) financial calculator, compute the present value of a finite annuity stream with equally-sized (g=0) payments.

The first payment is due immediately, and the subsequent five payments (for a total of six cash flows, occurring at t = 0 to 5) are all $200 per year. Use an effective annual discount rate (EAR) of 8%.

D)Now lets rework a simple P/F style problem (like Problem 1) but now with randomly generated values.

Using a handheld (5 button) financial calculator, compute the present value of $309.65 paid to you in 11 years, using an effective annual discount rate (EAR) of 9.6%.

E)Now lets rework a regular finite-annuity problem (like Problem 2) but now with randomly generated values.

Using a handheld (5 button) financial calculator, compute the present value of a finite annuity stream with equally-sized payments (g = 0).

The first payment occurs in one year, and the subsequent 15 payments are all $173 per year. Use an effective annual discount rate (EAR) of 8.6%.

Enter your answer as a positive value.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!