Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

this is complete question .this is example, pls finish 1-4 ,thanks 1-4 questionhow to example Explanation of how to: Calculate the present value of the

image text in transcribedthis is complete question .this is example, pls finish 1-4 ,thanksimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

1-4 questionhow to
example

Explanation of how to: Calculate the present value of the inflows of an investment project

2.
example
3.

Associated Terms:

4.

Associated Formulas or Calculator Functions:

W3-39 Calculate the present value of the inflows of an investment project TABLE OF CONTENTS 1. Explanation of how to.... 2. Example(s): 3. Associated Terms: 4. Associated Formulas or Calculator Functions: 5. Associated Learning Outcomes: 6. Source(s): Explanation of how to.... The present value of the inflows of an investment project Example(s): Associated Terms: Associated Formulas or Calculator Functions: Associated Learning Outcomes: Source(s): W3-2 Calculate the present value of an annuity due TABLE OF CONTENTS [edit] [edit] [edit] [edit] [edit] [edit] 1. Explanation of how to.... 2. Example(s): 3. Associated Terms: 4.1. Annuity due 5. 2. Ordinary annuity 6.3. Payment period 7.4. BGN mode 8. 5. END mode 9. Associated Formulas or Calculator Functions: 10. Associated Learning Outcomes: 11. Source(s): [edit] [edit] [edit] [edit] [edit] Explanation of how to.... [edit] An annuity due is a type of annuity in which payments are made at the beginning of each payment period rather than at the end, as with standard annuities. Payment and annuity start from same point in annuity due. The present value of an annuity due is calculated using the current worth of money at the end of the specified number of periods. The present value of an annuity due is calculated using the current worth of money at the end of the specified number of periods. Calculations for this topic is as similar as we calculate for ordinary annuities but there is need to set our calculator to BGN mode because payments are at beginning of payment period. Example(s): [edit] On a loan, Ridhi makes $200 payments. Beginning now, payments will be made at the beginning of each month for the next three years. Calculate the loan's present value if the interest rate is compounded monthly at 12%. Now set the calculator to BGN mode and then calculate for present value: C/Y=12 P/Y=12 N= 3*12=36 1/Y=12 PMT= -200 FV=0 CPT-PV=6081.716018, So the present value of loan is $6281.72 Associated Terms: Associated Terms: [edit] [edit] [edit] 1. Annuity due 2. Ordinary annuity 3. Payment period 4.BGN mode 5. END mode [edit] [edit] [edit] Associated Formulas or Calculator Functions: [edit] Follow these procedures to set the calculator to BGN mode: 1.To enter BGN, press 2ND-PMT as indicated above the PMT key. END should be displayed on the calculator's display. 2.To access SET, press 2ND-ENTER as printed above the ENTER key. BGN should now be displayed on the calculator's display. 3.To quit the settings, press the CE/C button. Above the numbers in the display, the calculator should now display BGN in small letters. Follow the same methods as before to return to END mode. Toggle between END and BGN modes with the SET function. displayed on the calculator's display. 3.To quit the settings, press the CE/C button. Above the numbers in the display, the calculator should now display BGN in small letters. Follow the same methods as before to return to END mode. Toggle between END and BGN modes with the SET function. Associated Learning Outcomes: [edit] Source(s): [edit] OLIVER, J-P(2020) BUSINESS MATH-STEP BY STEP HANDBOOK SELF ASSESSMENT QUIZ-09

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Behavioral Finance The Coming Of Age

Authors: Itzhak Venezia

1st Edition

9813279451,9813279478

More Books

Students also viewed these Finance questions

Question

Define a qualified operator.

Answered: 1 week ago