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That's my final exam I need to understand these type of Annuity questions. Can someone please explain to me how we've made the calculations here

image text in transcribedimage text in transcribed That's my final exam I need to understand these type of Annuity questions. Can someone please explain to me how we've made the calculations here ? how does it work ? Like Frame B equals to 1000 means 1000 is Present value ? what does the R mean on the linear lines ? and lastly what are (a,b,c,d,e) what should we find ? Thank you so much in advance

Dr. Wachowicz ANNUITY PROBLEMS Financial Management Frame A: Cash receipt at the END of year time i 1 2 3 6 7 00 9 10 0 1 -- -- -- 4 LI R 5 LI R -- -- LI R R R (a) (b) (c) (d) (e) (f) Frame B: Cash receipt at the END of year time! 0 1 2 4 un 6 7 8 9 10 -- 3 LI R -- -- -- -- $ -- R 70 R A (g) (h) (i) (j) (k) (1) 1. Assume that the time lines in Frames A and B (above) depict annual cash flows of R dollars at the ends of the periods indicated. If the appropriate compound annual interest rate is 8 percent, what dollar value does R take on if the present value of the cash flow stream depicted in Frame A or Frame B equals $1,000 as of point (a)? point (b)? point (c)? point (g)? point (h)? point (1) ? Answers: Question 1 When the present value of the cash flow stream depicted in Frame A or Frame B equals $1,000 at point R equals (a), $292.23; (b), $250.44; (c), $231.91; (g), $364.83; (h), $312.60; (i), $289.44 3 Question 2 When the future value of the cash flow stream depicted in Frame A or Frame B equals $1,000 at point R equals (d), $170.44; (e), $157.83; (f), $135.28; (j), $212.72; (k), $197.01; (1), $168.83 0 time I 1 2 5 6 7 9 8 10 3 1 R 4 LI R -- -- $ R R R R(PVIFA8% (a) $1,000 $1,000 - R(PVIFA84, 5) * (PVIF8*, 2? $1,000 R(3.993) (.857) X R(3.422) R $1,000/3.422 $292.23 when the present value of the cash flow stream equals $1,000

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