Question
Complete the table by indicating the present value amount of the annuity Frequency of Annual Number of Beg. Or End of Deferral of Present Value
Complete the table by indicating the present value amount of the annuity
Frequency of | Annual | Number of | Beg. Or End of | Deferral of | Present Value | |||||
---|---|---|---|---|---|---|---|---|---|---|
Investment | Payments | Interest Rate | Payment | Years | Payment Period | Annuity Payment | Amount | |||
Annuity A | Annually | 6% | $(1,500) | 2 | years | End | 0 | years | ? | |
Annuity B | Semiannually | 8% | (4,800) | 3 | years | End | 0 | years | ? | |
Annuity C | Semiannually | 6% | (9,600) | 4 | years | End | 2 | years * | ? | |
Annuity D | Annually | 8% | (4,920) | 6 | years | Beginning | 0 | years | ? | |
Annuity E | Semiannually | 6% | (960) | 5 | years | Beginning | 0 | years | ? | |
Annuity F | Semiannually | 8% | (3,600) | 4 | years | Beginning | 1 | year * | ? |
*Assume semiannual compounding during the deferral period.
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
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