Question
Calculate the present value of the following annuity streams: to. $7,000 received each year for 5 years on the last day of each year if
Calculate the present value of the following annuity streams:
to. $7,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (eg, 32.16))
present value $
b. $7,000 received each quarter for 5 years on the last day of each quarter if your investments pay 6 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (eg, 32.16))
present value $
C. $7,000 received each year for 5 years on the first day of each year if your investments pay 6 percent per annum compounded. (Do not round intermediate calculations. Round your answer to 2 decimal places. (eg, 32.16))
present value $
d. $7,000 received each quarter for 5 years on the first day of each quarter if your investments pay 6 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (eg, 32.16))
present value $
Step by Step Solution
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Step: 1
1 Calculate the present value of the stream of payments PV PMT x 1 1 rn r Where PV is the present value PMT is the payment amount r is the interest ra...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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