Back to Assignment Attempts Average 3 7. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the beginning of each year O An annuity that pays $1,000 at the end of each year An annuity that pays $500 at the beginning of every six months An annuity that pays $500 at the end of every six months An ordinary annuty selling at $2,514.15 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity's appropriate interest rate (1) remains at 8.00% during this time, the annusal annuty payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $10,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won -assuming annual interest rate of 8.00% Back to Assignment Attempts Average 3 7. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PU)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $1,000 at the beginning of each year An annuity that pays $1.000 at the end of each year $546.88 An annuity that pays $500 at the beginning of every six months An annuity that pays $500 at the end of every six months $437.50 o $634.38 An ordinary annuity selling at $2,514.15 today promises to make equal payments at the end of each year appropriate interest rate (1) remains at 8.00% during this time, the annual annuity payment (PMT) will be $896.04 eight years (N). If the annuity's You just won the lottery. Congratulations The jackpot is $10,000,000, paid in elight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won - assuming annual interest rate of 8.00%. Grade It Now Save & Continue Continue without saving 12 CENGAGE MINDTAP Ch 05: Assignment - Time Value of Money Back to Assignment Bols Attempts Average / 7. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities, which of the following 10-year annultles has the greatest present value (PWY? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the beginning of each year O An annuity that pays $1,000 at the end of each year An annulty that pays $500 at the beginning of every six months An annuity that pays $500 at the end of every se $14,359,447.299 $7,183,298.68 An ordinary annulty selling at $2,514.15 today promises to ts at the end of each year for the next eight years (N). If the annuity's appropriate interest rate (1) remains at 8.00% during this e$7,757,962.57 Luty payment (PMT) will be $13,295,784,536 You just won the lottery. Congratulations The Jackpot is $1 Jight equal annual payments. The first payment on the lottery Jackpot will be made today. In present value terms, you really won - assuming annual interest rate of 8.00%. Grade It Now Save & Continue Continue without saving