Question: plz help using Excel. The answer is given, i need some explanation . TY 21. Consider a 5 year annuity with total annual cash flows

plz help using Excel. The answer is given, i need some explanation

. TY

21. Consider a 5 year annuity with total annual cash flows of $1,000 per year. The APR is 16%. Find the annuity's present value in each of the following cases: a. Interest in compounded annually. (APY = 16.00%, PV = $3,274.29) b. Interest is compounded quarterly. (APY = 16.986%, PV = $3,200.38)

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!

John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111120), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303....

here is the project which I'm already done the part A and I need help with question 2 on with answer on word docs ACCT505 Part B Check Figure Total annual cash flows (after tax amount): $58,351...

The expected return from previous is 10.4% or .1044 Please do 8-11 and show the work. thank you! More information was needed for questions 8-11, so i added in the answers to 1-7 and all the...

Summerlea is a thriving and diverse town, an important commercial and cultural centre and home to over 100,000 people living in more than 35,000 households. The population has grown by 12% over the...

Summer council is a thriving and diverse town, an important commercial and cultural centre and home to over 100,00 people living in more than 35,000 households. The population has grown by 12% over...

Brief Exercise 25-06 Bonita Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $249,000, would have a useful life of 9...

Hi there I need help answering ASSIGNMENT 1 ONLY by Friday afternoon. I have attached the study pack to help answer the question. Thanks! FIN4802 ASSIGNMENTS ASSIGNMENT 01 Due date: 13 May 2016...

Please answer this question.. Very easy. -What sources of value most plausibly account for the differences between buyer and seller? -Structure and execute a discounted cash flow valuation of all of...

Need help In Chapter 6 , we a re learning how to prepare a master budget for a manufacturing corporation. For this exercise, you will create a master budget in Excel. The exercise will reinforce your...

I am having issues find the answers to a homework question in my Managerial Cost Accounting course. We are in the Capital Budgeting chapter. I have included photos of the problem that I have worked,...

Can I please get help with the attached NPV and IRR: Unequal Annual Net Cash Inflows Salt River Company is evaluating a capital expenditure proposal that has the following predicted cash flows 1 2 3...

In 2008 Pfizer had 12,000 million shares of common stock authorized, 8,863 million in issue, and 6,746 million outstanding (figures rounded to the nearest million). Its equity account was as follows:...

Outline the internal changes a company may need to make when introducing e-business.

Change from sum - of - the - years' digits depreciation to straight - line. Question 1 8 options: 1 ) CPR Change in Principle reported Retrospectively 2 ) CPP Change in Principle reported...

These account bolances at December 31 relste to Sport Target inc: Spertargets net inoome tor the period is $119,100 and beginning common shareholders' equty is 3651,000 , and it declaved the fual...