Question
Hi! Please answer all questions and I will give a good like! I will only give like if you answer all. Thank you. Question 7
Hi! Please answer all questions and I will give a good like! I will only give like if you answer all. Thank you.
Question 7
Present value
What is the present value of a security that will pay $22,000 in 20 years if securities of equal risk pay 5% annually? Round your answer to the nearest cent.
$____________
Question 8
Future value of an annuity
Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent.
Part A
i) $900 per year for 12 years at 4%. $____________
ii) $450 per year for 6 years at 2%. $____________
iii) $800 per year for 10 years at 0%. $____________
Part B
Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. i) 900 per year for 12 years at 4%.
$__________ ii) 450 per year for 6 years at 2%.
$__________ iii) $800 per year for 10 years at 0%.
$__________
Question 9
How long will it take $100 to double if it earns the following rates? Compounding occurs once a year. Round each answer to two decimal places.
-
8%. _____________ year(s)
-
11%. _____________ year(s)
-
17%. _____________ year(s)
-
100%. _____________ year(s)
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