Question
A 4-year annuity consisting of eight semiannual payments of $11,400 will make the first payment 9.5 years from now. The discount APR is 11 percent
| A 4-year annuity consisting of eight semiannual payments of $11,400 will make the first payment 9.5 years from now. The discount APR is 11 percent compounded monthly. |
| a. | What is the value of this annuity five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | What is the value three years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| c. | What is the current value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond, Arne Strom
4th Edition
0273760688, 9780273760689
