Question: please explain the ans to understand it. Question 1 0/1 pts An annuity pays $100 at the end of each month for 10 years at

please explain the ans to understand it.

Question 1 0/1 pts An annuity pays $100 at the end of each month for 10 years at the annual effective interest of 7%. Calculate the present value of the annuity. Round the answer to the nearest dollar. 724

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!

Please answer only question 3, I need it to be on paper, Please explain your answer as thoroughly as possible. 1. (5 pts) A perpetuity-immediate pays $100 per year (the payment is made at end of each...

QUIZ 2 SMA2013 A211 1. A 10-year annuity immediate makes quarterly payments of RM 100 in year 1, RM 90 in year 2, and continues to decrease to RM 10 per quarter in year 10. Find the present value of...

Please answer all question 1. How much will accumulate at the end of 12 years if $800 is deposited uniformly and continuously each quarter. The account earns 7% nominal annual interest compounded ANS...

Lyons Document Storage Corporation: Bond Accounting : In December 2008, Rene Cook sat in her cubicle trying to remember what she had learned in business school about bonds and bond accounting. Ms....

Question 2 4 pts An annuity pays $1 at the end of the first year, $4 at the end of the fourth year, $7 at the end of the seventh year. $10 at the end of the tenth year and so on until it ends by...

Please Answer Question 3 on paper, Thank you. 1. (5 pts) A perpetuity-immediate pays $100 per year (the payment is made at end of each year). The annual effective rate of interest (i.e. EAR) is 8%....

Please answer question 3 1. (5 pts) A perpetuity-immediate pays $100 per year (the payment is made at end of each year). The annual effective rate of interest (i.e. EAR) is 8%. What is the present...

Please Answer Question 2 1. (5 pts) A perpetuity-immediate pays $100 per year (the payment is made at end of each year). The annual effective rate of interest (i.e. EAR) is 8%. What is the present...

1. (5 pts) A perpetuity-immediate pays $100 per year (the payment is made at end of each year). The annual effective rate of interest (i.e. EAR) is 8%. What is the present value of this perpetuity-...

1. A bank is paying interest at a 5% annual rate on deposits. If you invest 10,000 and the bank compounds interest daily (i.e., 365 times per year), which of the following shows how much you will...

An obstetrician wants to know whether or not the proportions of children born on each day of the week are the same. She randomly selects 500 birth records and obtains the data shown in table. Is...

Your favorite aunt has promised to help you with your school expenses by giving you $1,100 in one year. The appropriate interest rate is 6%. You wonder how much your aunt's promise is worth. What is...

The tyres on a car produce a force of 250 N for 30 s. Calculate the change of momentum for the car.

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...