Question
Payments or Years Annual Interest Rate Future Value Annuity Present Value 6 nothing% (Round to two decimal places.) $0.00 $560.00 $2,225.42 16 nothing% (Round to
| Payments or Years | Annual Interest Rate | Future Value | Annuity | Present Value | ||||
| 6 | nothing% (Round to two decimal places.) | $0.00 | $560.00 | $2,225.42 | ||||
| 16 | nothing% (Round to two decimal places.) | $14,556.32 | $371.43 | $0.00 |
| 50 | nothing% (Round to two decimal places.) | $0.00 | $2,106.95 | $38,000.00 |
| 70 | nothing% (Round to two decimal places.) | $1,904,056.05 | $700.00 | $0.00 |
Estimating the annual interest rate with an ordinary
annuity.
Fill in the missing annual interest rates in the following table for an ordinary annuity stream:
LOADING...
.
| Number of Payments or Years | Annual Interest Rate | Future Value | Annuity | Present Value | ||||
| 6 | nothing% (Round to two decimal places.) | $0.00 | $560.00 | $2,225.42 | ||||
| 16 | nothing% (Round to two decimal places.) | $14,556.32 | $371.43 | $0.00 |
| 50 | nothing% (Round to two decimal places.) | $0.00 | $2,106.95 | $38,000.00 |
| 70 | nothing% (Round to two decimal places.) | $1,904,056.05 | $700.00 | $0.00 |
|
|
Interest rate with
annuity.
What are you getting in terms of interest rate if you are willing to pay
$14,000
today for an annual stream of payments of
$2,000
for the next
15
years? The next
30
years? The next
75
years? Forever?What are you getting in terms of interest rate if you are willing to pay
$14,000
today for an annual stream of payments of
$2,000
for the next
15
years?
nothing%
(Round to two decimal places.)What are you getting in terms of interest rate if you are willing to pay
$14,000
today for an annual stream of payments of
$2,000
for the next
30
years?
nothing%
(Round to two decimal places.)What are you getting in terms of interest rate if you are willing to pay
$14,000
today for an annual stream of payments of
$2,000
for the next
75
years?
nothing%
(Round to two decimal places.)What are you getting in terms of interest rate if you are willing to pay
$14,000
today for an annual stream of payments of
$2,000
forever?
nothing%
(Round to two decimal places.)
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Essentials Of Financial Management Text And Cases
Authors: George C Philippatos
1st Edition
0816267162, 978-0816267163
