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You need $24,556 at the end of years, and your only investment outlet is an 7 percent long-term certificate of deposit (compounded annually). With the
You need $24,556 at the end of years, and your only investment outlet is an 7 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B and Appendix for an approximate answer, but calculate your final answer using the formula and financial calculator methods. What single payment could be made at the beginning of the first year to achieve this objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Singlu paymont made b. What amount could you pay at the end of each year annually for 6 years to achieve this same objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places) Amount to be paid Bridget Jones has a contract in which she will receive the following payments for the next five years $19,000, $20,000, $21000, $22,000, and $23,000 She will then receive an annuity of $25,000 a year from the end of the 6th through the end of the 15th year, The appropriate discount rate : 9 percent a. What is the present value of a future payments? Use Appendix Band Arpendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b.If she is offered $185,000 to cancel the contract, should she do I? O Yes NO
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