Question
A.) What is the present value of a 7-year annuity of $3,000 per period in which payments come at the beginning of each period? The
A.) What is the present value of a 7-year annuity of $3,000 per period in which payments come at the beginning of each period? The interest rate is 10 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. When using Appendix D to find the present value of this annuity due, subtract 1 from n and add 1 to the table value. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
B.) If you invest $8,200 per period for the following number of periods, how much would you have in each of the following instances? Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. In 9 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. In 25 years at 13 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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