Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. 2. Pls answer both and show all work, only respond if you are confident in your answer, i've wasted a lot of questions this

1. image text in transcribed

2. image text in transcribed

Pls answer both and show all work, only respond if you are confident in your answer, i've wasted a lot of questions this month on incorrect answers

Find the present value at time 0 of regular payments of $100 at times 23 years, 24 years, and so on, with the last payment at time 41 years. Use an annual interest rate of 7.5%. Round your answer to 2 decimal places. An annuity is structured so that you will receive yearly payments with the first payment to be received 3 years from today. The annuity consists of 5 payments of $800 followed by 8 payments of $400 and then payments of $700 continuing forever. Find the amount that you would have to pay today to receive this annuity if it has a constant force of interest of 9%. Round your answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance Strategy, Valuation, And Deal Structure

Authors: Janet Smith, Richard Smith, Richard Bliss

1st Edition

0804770913, 9780804770910

More Books

Students also viewed these Finance questions

Question

Explain the causes of indiscipline.

Answered: 1 week ago

Question

plan how to achieve impact in practice from your research;

Answered: 1 week ago