Question
Calculate the values for the following. Treat each part independently A. Future value of an annuity due. (Tables needed.) If $9,000 is deposited annually starting
Calculate the values for the following. Treat each part independently
A. Future value of an annuity due. (Tables needed.)
If $9,000 is deposited annually starting on January 1, 2014 and it earns 9%, how much will accumulate by December 31, 2023?
B. Present value of an annuity due.(Tables needed.)
How much must be invested now to receive $30,000 for ten years if the first $30,000 is received today and the rate is 8%?
C. Compute the annual rent. (Tables needed.)
Crone Co. has machinery that cost $120,000. It is to be leased for 15 years with rent received at the beginning of each year. If Crone wants a return of 10%. Compute the amount of the annual rent.
D. Calculate market price of a bond. (Tables needed.)
Determine the market price of a $500,000, ten-year, 10% (pays interest semiannually) bond issue sold to yield an effective rate of 12%.
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