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 discount rate. (Round percentages to 1 decimal place, e.g. 15.1%.) (1) In Table 3 (future value of 1):
Annual Rate | Number of Years Involved | Discounts per Year | ||||
---|---|---|---|---|---|---|
Case A | 10% | 8 | Annually | |||
Case B | 10% | 10 | Semianually | |||
Case C | 8% | 10 | Semiannually |
(a) | (b) | |||
---|---|---|---|---|
Case A | enter an interest rate for annual discount for case A % | enter a number of periods for annual discount for case A periods | ||
Case B | enter an interest rate for annual discount for case B % | enter a number of periods for annual discount for case B periods | ||
Case C | enter an interest rate for semiannual discount for case C % | enter a number of periods for semiannual discount for case C periods |
(2) In Table 2 (future value of an annuity of 1):
Annual Rate | Number of Years Involved | Number of Payments Involved | Frequency of Payments | |||||
---|---|---|---|---|---|---|---|---|
Case A | 8% | 19 | 19 | Annually | ||||
Case B | 8% | 5 | 5 | Annually | ||||
Case C | 10% | 5 | 10 | Semiannually |
(a) | (b) | |||
---|---|---|---|---|
Case A | enter an interest rate for annual frequency of payments for case A % | enter a number of periods for annual frequency of payments for case A periods | ||
Case B | enter an interest rate for annual frequency of payments for case B % | enter a number of periods for annual frequency of payments for case B periods | ||
Case C | enter an interest rate for semiannual frequency of payments for case C % | enter a number of periods for annual frequency of payments for case C periods |
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