Calculate the present value of an annuity of $800 for 8 years at 9%. PV of...

  

Transcribed Image Text:

Calculate the present value of an annuity of $800 for 8 years at 9%. PV of an Annuity Table [ Select ] Question 6 1 pts You are offered the opportunity to purchase an investment today for $2,745 that will pay you $10,000 15 years from now. What rate of return will you earn? Hint: Set up the PV of single amount formula PV = FV x PV factor. Then put in what you know. $2,745 $10,000 x PV factor. Solve for the factor. Then, knowing the investment lasts 15 years, find the rate on the PV of single amount table. PV of single amount table Question 7 1 pts You are offered an opportunity to purchase an investment today for $6,651 that will pay $10,000. The rate of return you will earn is 6%. How many years will it take from your investment to grow to the $10,000? Hint: Set up the PV of single amount formula PV = FV x PV factor. Then put in what you know. $6,651 = $10,000 x PV factor. Solve for the factor. Then, knowing the investment has a 6% rate of return, find the years (time periods) on the PV of single amount table. PV of a single amount table , [ Select ] Calculate the present value of an annuity of $800 for 8 years at 9%. PV of an Annuity Table [ Select ] Question 6 1 pts You are offered the opportunity to purchase an investment today for $2,745 that will pay you $10,000 15 years from now. What rate of return will you earn? Hint: Set up the PV of single amount formula PV = FV x PV factor. Then put in what you know. $2,745 $10,000 x PV factor. Solve for the factor. Then, knowing the investment lasts 15 years, find the rate on the PV of single amount table. PV of single amount table Question 7 1 pts You are offered an opportunity to purchase an investment today for $6,651 that will pay $10,000. The rate of return you will earn is 6%. How many years will it take from your investment to grow to the $10,000? Hint: Set up the PV of single amount formula PV = FV x PV factor. Then put in what you know. $6,651 = $10,000 x PV factor. Solve for the factor. Then, knowing the investment has a 6% rate of return, find the years (time periods) on the PV of single amount table. PV of a single amount table , [ Select ]

Answer rating: 100% (QA)

5 Annutiy Amount 800 Period 8 Years Interest Rate 9 Pr... View the full answer