Question
H.) What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than
H.)
What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding? Round your answers to the nearest cent.
FV with semiannual compounding: $ PV with semiannual compounding: $
I.)
Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 11%. Round your answers to the nearest cent.
Annual payment for ordinary annuity: | |
Annual payment for annuity due: |
J.)
Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 11%.
Year | Payment |
1 | $200 |
2 | $400 |
3 | $700 |
Round your answers to the nearest cent.
PV of investment: $ fill in the blank 33 FV of investment: $ fill in the blank 34
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