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Managerial Finance ( MBA 5 3 2 3 ) Homework # 6 : Time Value of Money 1 . calculating future values Sum today (
Managerial Finance MBA
Homework #: Time Value of Money
calculating future values
Sum today PV interest rate IY length of time N compounding
$ per year years annual
$ per year years quarterly
calculating present values
Future sum FV interest rate IY length of time N compounding
$ per year years annual
$ per year years semiannual
calculating interest rates rates of return
Be sure to state your final answers as annual rates.
Sum today PV future sum FV length of time N compounding
$ $ years annual
$ $ years semiannual
calculating the number of periods
Be sure to state your final answers as years.
Sum today PV future sum FY interest rate IY compounding
$ $ per year annual
$ $ per year monthly
Consider the following five annuities:
Annual annual number of
$ amount rate years
For each of the annuities, calculate the present value TWICE once assuming a regular deferred annuity and once assuming an annuity due.
Based on your answers to # all else being equal, which type of annuity regular or due would be preferable. Why?
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