Complete the table by indicating the present value amount of the annuity Frequency of Annual Number of
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Complete the table by indicating the present value amount of the annuity
Frequency of | Annual | Number of | Beg. Or End of | Deferral of | Present Value | |||||
---|---|---|---|---|---|---|---|---|---|---|
Investment | Payments | Interest Rate | Payment | Years | Payment Period | Annuity Payment | Amount | |||
Annuity A | Annually | 6% | $(1,500) | 2 | years | End | 0 | years | ? | |
Annuity B | Semiannually | 8% | (4,800) | 3 | years | End | 0 | years | ? | |
Annuity C | Semiannually | 6% | (9,600) | 4 | years | End | 2 | years * | ? | |
Annuity D | Annually | 8% | (4,920) | 6 | years | Beginning | 0 | years | ? | |
Annuity E | Semiannually | 6% | (960) | 5 | years | Beginning | 0 | years | ? | |
Annuity F | Semiannually | 8% | (3,600) | 4 | years | Beginning | 1 | year * | ? |
*Assume semiannual compounding during the deferral period.
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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