24 eBook Problem Walk Through Find the present value of $600 due in the future under each of these conditions 15 nominal rate, semiannual compounding, discounted back 4 years Do not round intermediate calculations Round your answer to the nearest cent $ 15 nominal rate, quarterly compounding, discounted back 4 years Do not round intermediate calculations Round your answer to the nearest cent $ 15 nominal rate, monthly compounding, discounted back 1 year Do not round intermediate calculations Round your answer to the nearest cent $ Why do the differences in the PVs occur 25 Find the future values of the following ordinary annuities FV of $800 paid each 6 months for 5 years at a nominal rate of 7 compounded semiannually Do not round intermediate calculations Round your answer to the nearest cent $ FV of $400 paid each 3 months for 5 years at a nominal rate of 7 compounded quarterly Do not round intermediate calculations Round your answer to the nearest cent $ These annuities receive the same amount of cash during the 5 year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a Why does this occur 17 You borrow $245,000 the annual loan payments are $19,743 67 for 30 years What interest rate are you being charged Round your answer to the nearest whole number

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24. eBook Problem Walk-Through Find the present value of $600 due in the future under each of these conditions: 15% nominal rate, semiannual compounding, discounted

24.

eBook Problem Walk-Through

Find the present value of $600 due in the future under each of these conditions:

15% nominal rate, semiannual compounding, discounted back 4 years. Do not round intermediate calculations. Round your answer to the nearest cent.

$
15% nominal rate, quarterly compounding, discounted back 4 years. Do not round intermediate calculations. Round your answer to the nearest cent.

$
15% nominal rate, monthly compounding, discounted back 1 year. Do not round intermediate calculations. Round your answer to the nearest cent.

$
Why do the differences in the PVs occur?

25. Find the future values of the following ordinary annuities:

FV of $800 paid each 6 months for 5 years at a nominal rate of 7% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.

$
FV of $400 paid each 3 months for 5 years at a nominal rate of 7% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.

$
These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur?

17. You borrow $245,000; the annual loan payments are $19,743.67 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number.