A 10%, 4-year annuity pays $500.00 each year. What is the future value of the annuity? You expect to make equal payments of $ 9020.00 at the end of each of the next 6years (ordinary annuity) into a new bank account earning interest at 12 %.What is the future value of the annuity stream? (use annual compounding) An investment is expected to result in equal payments of $25 at the end of each ofthe next 3 years (ordinary annuity). If the appropriate required rate of return(discount rate) is 5%, what is the present value of the annuity stream? (annualcompounding)$68.08$74.93$21.60-$68.08

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A 10%, 4-year annuity pays $500.00 each year. What is the future value of the annuity?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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Question

A 10%, 4-year annuity pays $500.00 each year. What is the future value of the annuity?

You expect to make equal payments of $ 9020.00 at the end of each of the next 6
years (ordinary annuity) into a new bank account earning interest at 12 %.
What is the future value of the annuity stream? (use annual compounding)

An investment is expected to result in equal payments of $25 at the end of each of
the next 3 years (ordinary annuity). If the appropriate required rate of return
(discount rate) is 5%, what is the present value of the annuity stream? (annual
compounding)
$68.08
$74.93
$21.60
-$68.08

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