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7b. How long would it take if the rate was 10%? 10% PMT PV FV US$0 US$1,000 US$3,000 8a. What is the PV of an
7b. How long would it take if the rate was 10%? 10% PMT PV FV US$0 US$1,000 US$3,000 8a. What is the PV of an ordinary annuity with 12 payments of $200 if the appropriate interest rate is 10%? N 12 PMT 10% -US$200 US$0 FV PV = 8b. What would the PV be if the interest rate was 4%? N 12 4% PMT -US$200 US$0 FV 8c. What if the interest rate was 0%? N 12 0% -US$200 US$0 PMT FV 8d. How would the PV values differ if we were dealing with annuities due? Part b N N 12 N Part a 12 10% -US$200 US$0 US$1,499.01 Partc 12 0% -US$200 US$0 PMT FV PV 4% -US$200 US$0 PMT FV PMT FV PV PV =
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