Question
P6-53 Calculating Annuities Due [LO1] Suppose you are going to receive $17,000 per year for 6 years. The appropriate interest rate is 9 percent. Requirement
P6-53 Calculating Annuities Due [LO1]
| Suppose you are going to receive $17,000 per year for 6 years. The appropriate interest rate is 9 percent. |
| Requirement 1: | |
| (a) | What is the present value of the payments if they are in the form of an ordinary annuity? |
(Click to select)83,124.0776,260.6287,683.83155,015.87121,732.33
| (b) | What is the present value if the payments are an annuity due? |
(Click to select)161,991.5983,124.07132,688.2491,629.6076,260.62
| Requirement 2: | |
| (a) | Suppose you plan to invest the payments for 6 years, what is the future value if the payments are an ordinary annuity? |
(Click to select)342,392.24262,888.54139,407.39114,187.16127,896.69
| (b) | Suppose you plan to invest the payments for 6 years, what is the future value if the payments are an annuity due? |
(Click to select)119,325.58127,896.69274,718.53139,407.39373,207.54
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
