Consider a system of four annuity variables. (a) An annuity pays $63.00 each period for 3 periods.

Question:

Consider a system of four annuity variables.

(a) An annuity pays $63.00 each period for 3 periods. For these cash flows, the appropriate discount rate / period is 8.0%. What is the present value of this annuity?

(b) An annuity pays each period for 11 periods, the appropriate discount rate / period is 6.0%, and the present value is $192.38. What is the payment each period?

(c) An annuity pays $183.00 each period for 14 periods, and the present value is $463.94. What is the discount rate / period of this annuity?

(d) An annuity pays $30.00 each period, the appropriate discount rate /

period is 7.6%, and the present value is $218.49. What is the number of periods?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: