Details of this Paper

What is the present value of $3,000, discounted at 8 percent

Description

solution


Question

Question;1 What is the present value of $3,000, discounted at 8 percentinterest per period, for two periods? (Round your answer tothe nearest cent.)A. $2,777.78 C. $3,499.20B. $2,572.02 D. $3,240.002 An ordinary annuity of $500 per period, discounted at a rateof 8 percent per period for 3 periods, has a present value of$1,288.55. If this same annuity was an annuity due, whatwould its present value be? (Round your answer to thenearest cent.)A. $1,288.55 C. $1,391.63B. $1,500.00 D. $1,788.553 On an investment of $2,000, you?ll earn 10 percent interest per year compoundedsemiannually. What is the future value of this investment after one year?A. $2,205 C. $2,420B. $2,100 D. $4,5004 What is the future value of a $10,000 investment, earning 12 percent interestper period, after three periods? (Round your answer to the nearest cent.)A. $7,117.80 C. $12,544.00B. $11,200.00 D. $14,049.285 Suppose that you buy a $5,000 bond with a 12 percent annual coupon, payablesemiannually on January 1 and July 1. On both January 1 and July 1, the bondholderwill receive $300, for a total annual interest payment of $600 ($300 + $300).Based on the principal and accrued interest only, how much would you expectto pay to purchase this bond on May 1?A. $5,200 C. $5,300B. $5,000 D. $5,6006 Today, you deposit $1,000 into an account that pays 12 percent interest annually.How much will you have in the account after 4 years? (Round your answer to thenearest cent.)A. $635.52 C. $1,120.00B. $1,254.40 D. $1,573.527 What is the present value of the right to receive four equal payments (ordinaryannuity) of $500 per period, discounted at a rate of 10 percent per period? (Roundyour answer to the nearest cent.)A. $341.51 C. $1,584.94B. $454.55 D. $732.058 What is the present value of the right to receive four equal payments (annuity due)of $1,000 per period, discounted at a rate of 10 percent per period? (Round youranswer to the nearest cent.)A. $1,909.09 C. $1,464.10B. $3,486.85 D. $2,486.85

 

Paper#52037 | Written in 18-Jul-2015

Price : $22
SiteLock