Question
Complete the following question: a. Calculate the value of a perpetuity that pays $3698.81 at the end of each year at a rate of 4.61%
Complete the following question:
a. Calculate the value of a perpetuity that pays $3698.81 at the end of each year at a rate of 4.61% compounded annually.
b.A perpetuity pays $247.59 at the beginning of each year at a rate of 5.41% per year compounded semi-annually.
What is the annually compounded rate of interest which is equivalent to 5.41% compounded semi-annually?
c. A perpetuity pays $247.59 at the beginning of each year at a rate of 5.41% per year compounded semi-annually.
What is the value of this perpetuity today
d. An investment makes payments of $1389 at the beginning of each month for 1 year. The rate or return of the investment is 3.21% compounded monthly.
What is the present value of this investment
e. An investment makes payments of $1389 at the beginning of each month for 1 year. The rate or return of the investment is 3.21% compounded monthly.
What is the future value of this investment?
f. An investment makes payments of $655 at the start of each year for 100 years. The rate or return of the investment is 5.4% compounded quarterly.
What is annually compounded rate of interest which is equivalent to 5.4% compounded quarterly?
g. An investment makes payments of $655 at the start of each year for 100 years. The rate or return of the investment is 5.4% compounded quarterly.
What is the present value of this investment?
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