Question
Find the present value of the following ordinary annuities . ( Notes: If you are using a financial calculator, you can enter the known values
Find thepresent valueof the followingordinary annuities. (Notes:If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent.
- $200 per year for 10 years at 8%.
- $
- $100 per year for 5 years at 4%.
- $
- $200 per year for 5 years at 0%.
- $
- Now rework parts a, b, and c assuming that payments are made at thebeginningof each year; that is, they areannuities due.
- Present value of $200 per year for 10 years at 8%: $
- Present value of $100 per year for 5 years at 4%: $
- Present value of $200 per year for 5 years at 0%: $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started