Question: Q16 A) Problem 5-4 Calculating Annuity Present Values [LO 1] B An investment offers $7,600 per year for 16 years, with the first payment occurring
Q16 A) Problem 5-4 Calculating Annuity Present Values [LO 1] B An investment offers $7,600 per year for 16 years, with the first payment occurring 1 year from now. Problem 5-12 Calculating EAR [LO 4] Assume the required return is 9 percent. Requirement 1: Find the EAR in each of the following cases. (Enter rounded answers as directed, but do not use What is the value of the investment today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) rounded numbers in intermediate calculations. Use 365 days in a year. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Present value $ Number of Times Effective Rate Requirement 2: Stated Rate (APR) Compounded (EAR) What would the value be if the payments occurred for 41 years? (Enter rounded answer as directed, but 10.25% Quarterly 1% do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) 15.75 Monthly 1% Present value s 16.25 Daily Requirement 3: 12.25 Semiannually 7% What would the value be if the payments occurred for 76 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) C) Present value Problem 5-9 Calculating Annuity Values [LO 1] Requirement 4: What would the value be if the payments occurred forever? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places Assume you deposit $5,100 at the end of each year into an account paying 9.75 percent interest. (e.g., 32.16).) Requirement 1: Present value How much money will you have in the account in 18 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Annuity future value Requirement 2: How much will you have if you make deposits for 36 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Annuity future value $