Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream:

Estimating the annual interest rate with an ordinary annuity.

Fill in the missing annual interest rates in the following table for an ordinary annuity stream:

Number of

Payments or

Years

Annual

Interest Rate

Future Value

Annuity

Present Value

9

?

$0.00

$500.00

$2,386.01

16

?

$19,225.41

$490.57

$0.00

35

?

$0.00

$1,863.83

$39,000.00

90

?

$1,116,225.11

$700.00

$0.00

Number of

Payments or

Years

Annual

Interest Rate

Future Value

Annuity

Present Value

9

enter your response here%

(Round to two decimal places.)

$0.00

$500.00

$2,386.01

Part 2

16

enter your response here%

(Round to two decimal places.)

$19,225.41

$490.57

$0.00

Part 3

35

enter your response here%

(Round to two decimal places.)

$0.00

$1,863.83

$39,000.00

Part 4

90

enter your response here%

(Round to two decimal places.)

$1,116,225.11

$700.00

$0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions