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