Question
a) For an annuity due of $325 per year for 10 years, which of the following interest rates will result in the largest present value?
a) For an annuity due of $325 per year for 10 years, which of the following interest rates will result in the largest present value?
10.0%, compounded continuously.
10.1%, compounded daily (365 days per year).
10.2%, compounded monthly.
10.3%, compounded quarterly.
10.4%, compounded semiannually.
10.5%, compounded annually.
b) For an annuity due of $325 per year for 10 years, which of the following interest rates will result in the largest future value?
10.0%, compounded continuously.
10.1%, compounded daily (365 days per year).
10.2%, compounded monthly.
10.3%, compounded quarterly.
10.4%, compounded semiannually.
10.5%, compounded annually.
c) For an annuity due of $1500 per year for 10 years, which of the following interest rates will result in the largest present value?
2.00%, compounded continuously.
2.05%, compounded daily (365 days per year).
2.10%, compounded monthly.
2.15%, compounded quarterly.
2.20%, compounded semiannually.
2.25%, compounded annually.
d) For an annuity due of $1500 per year for 10 years, which of the following interest rates will result in the largest future value?
2.00%, compounded continuously.
2.05%, compounded daily (365 days per year).
2.10%, compounded monthly.
2.15%, compounded quarterly.
2.20%, compounded semiannually.
2.25%, compounded annually.
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Handbook Of Blockchain Digital Finance And Inclusion
Authors: David Lee, Robert H. Deng
1st Edition
0128104414, 978-0128104415
