Answered step by step
Verified Expert Solution
Question
1 Approved Answer
c. Find the PV of $1,000 due in 4 years if the discount rate is 12%. Round your answer to the nearest cent. $ 635.52
c. Find the PV of $1,000 due in 4 years if the discount rate is 12%. Round your answer to the nearest cent. $ 635.52 g d. A security has a cost of $1,000 and will return $4,000 after 4 years. What rate of return does the security provide? Round your answer to two decimal places. 41.42% c. Suppose California's population is 36.4 million people, and its population expected to grow by 2% annually. How long will it take for the population to double? Round your answer to the nearest whole number. 17 years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 4 years if the interest rate i 14%. Then find the FV of that same annuity. Round your answers to the nearest cent. PV of ordinary annuity: $ FV of ordinary annuity: $ 2913.71 4921.14 9. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ 3321.63g 5610.10 h. What will the FV and the PV for parts a and cbe if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding7 Round your answers to the nearest cent. 13180.79 FV with semiannual compounding: $ PV with semiannual compounding: $ 558.4 % i. Find the annual payments for an ordinary annuity and an annuity due for 8 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: $ j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 10%. Year Payment 1 $100 $200 2 3 $300 Round your answers to the nearest cent. PV of investment: $ FV of investment: $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started