Question
Solve the following by using formulas. Present value of an annuity due. Do not round intermediate calculations. Round your answer to the nearest cent. Annuity
Solve the following by using formulas.
Present value of an annuity due. Do not round intermediate calculations. Round your answer to the nearest cent.
| Annuity Payment | Payment Frequency | Time Period (years) | Nominal Rate (%) | Interest Compounded | Present Value of the Annuity |
| $900 | every 6 months | 3 | 15.8 | semiannually | $ |
2.
Use Table 12-2 to calculate the present value of the following annuity due. Round your answer to the nearest cent.
Click here for Table 12-2
| Annuity Payment | Payment Frequency | Time Period (years) | Nominal Rate (%) | Interest Compounded | Present Value of the Annuity |
| $4,500 | every year | 8 | 16 | annually | $ |
Use Table 12-2 to calculate the present value of the following annuity due. Round your answer to the nearest cent.
Click here for Table 12-2
| Annuity Payment | Payment Frequency | Time Period (years) | Nominal Rate (%) | Interest Compounded | Present Value of the Annuity |
| $1,200 | every year | 5 | 15 | annually | $ |
You have just been hired as a loan officer at the Eagle National Bank. Your first assignment is to calculate the amount of the periodic payment required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). Round your answer to the nearest cent.
Click here for Table 12-2
| Loan Payment | Payment Period | Term of Loan (years) | Nominal Rate (%) | Interest Compounded | Present Value (Amount of Loan) |
| $ | every month | monthly |
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