Question
For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up
For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the present value factor. (1) In Table 3 (present value of 1):
Annual Rate | Number of Years Involved | Discounts per Year | ||||
---|---|---|---|---|---|---|
Case A | 8% | 8 | Annually | |||
Case B | 12% | 11 | Semiannually | |||
Case C | 14% | 7 | Semiannually |
(a) | (b) | |||
---|---|---|---|---|
Case A | enter percentages % | enter a number of periods periods | ||
Case B | enter percentages % | enter a number of periods periods | ||
Case C | enter percentages % | enter a number of periods periods |
(2) In Table 4 (present value of an annuity of 1):
Annual Rate | Number of Years Involved | Number of Payments Involved | Frequency of Payments | |||||
---|---|---|---|---|---|---|---|---|
Case A | 9% | 19 | 19 | Annually | ||||
Case B | 10% | 5 | 5 | Annually | ||||
Case C | 12% | 8 | 16 | Semiannually |
(a) | (b) | |||
---|---|---|---|---|
Case A | enter percentages % | enter a number of periods periods | ||
Case B | enter percentages % | enter a number of periods periods | ||
Case C | enter percentages % | enter a number of periods periods |
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