7. Consider these 3 annuities. Annuity A: $50 per quarter for 4 years at 6% per year compounded quarterly Annuity B: $100 per quarter for 4 years at 6% per year compounded quarterly Annuity C: $50 per quarter for 8 years at 6% per year compounded quarterly a) Determine the present value of each annuity. b) Which of the following has the greater effect on the present value of an annuity? i) Doubling the payments

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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7. Consider these 3 annuities.
Annuity A: $50 per quarter for 4 years at 6% per year compounded quarterly
Annuity B: $100 per quarter for 4 years at 6% per year compounded quarterly
Annuity C: $50 per quarter for 8 years at 6% per year compounded quarterly
a) Determine the present value of each annuity.
b) Which of the following has the greater effect on the present value of an
annuity?
i) Doubling the payments
ii) Doubling the time period Justify your answe
Transcribed Image Text:7. Consider these 3 annuities. Annuity A: $50 per quarter for 4 years at 6% per year compounded quarterly Annuity B: $100 per quarter for 4 years at 6% per year compounded quarterly Annuity C: $50 per quarter for 8 years at 6% per year compounded quarterly a) Determine the present value of each annuity. b) Which of the following has the greater effect on the present value of an annuity? i) Doubling the payments ii) Doubling the time period Justify your answe
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