Thuan has an annuity paying $174.00 at the end of each quarter for 10 years. The intererst rate is i (26) =9.200%. a) What is
Thuan has an annuity paying $174.00 at the end of each quarter for 10 years. The intererst rate is i(26)=9.200%.
a) What is the effective interest rate per payment period?
b) What is the present value of his annuity?
c) Thuan chooses to receive annual payments instead (at the end of each year). The nominal interest rate i(26) and the present value of his annuity stay the same. What is the amount of her annual payments?
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Authors: Maximilian Edelbacher, Peter Kratcoski, Michael Theil
1st Edition
0367866528, 978-0367866525
