Details of this Paper

Chapter 6 Q10 Suppose you are going to receive $1...

Description

Solution


Question

Chapter 6 Q10 Suppose you are going to receive $10,000 per year for five years. The appropriate interest rate is 11 percent. Requirement 1: (a) What is the present value of the payments if they are in the form of an ordinary annuity? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Present value of an ordinary annuity $_____. (b) What is the present value if the payments are an annuity due? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Present value of an annuity due $______. Requirement 2: (a) Suppose you plan to invest the payments for five years, what is the future value if the payments are an ordinary annuity? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Future value of an ordinary annuity $______. (b) Suppose you plan to invest the payments for five years, what is the future value if the payments are an annuity due? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Future value of an annuity due $______.

 

Paper#10101 | Written in 18-Jul-2015

Price : $25
SiteLock