Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Find the value today, (time zero) of an annuity that makes equal annual payments of $1,813 each year with its first payment at the end
Find the value today, (time zero) of an annuity that makes equal annual payments of $1,813 each year with its first payment at the end of year 7 and its last payment at the end of year 17. The interest rate is 7.28%. Answer Format: ENTER YOUR ANSWER AS A POSITIVE NUMBER INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$""" or any other formatting. Carry computation to at least 4 decimals and round your final answer to 2 decimal places. ######.## Question 7 10 pts You are considering buying a perpetuity that will make equal payments of $100 starting at the end of year 13. The bank has offered the following payment schedule: you would pay $245 in 3 years, $207 in 7 years, and an upfront fee today. How much do you have to pay today where the interest rate is 7.04%? (Round to 0.00 decimal places and enter as a positive number)
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