Problem 2-21 Discount factors and annuity factorsa. If the one-year discount factor is 0.9200, what is the one-year interest rate? (Do not round intermediate calculations. Enter youranswer as a percent rounded to 2 decimal places.)b. If the two-year interest rate is 8.7%, what is the two-year discount factor? (Do not round intermediate calculations. Round youranswer to 4 decimal places.)c. Given these one- and two-year discount factors, calculate the two-year annuity factor. (Do not round intermediate calculations.Round your answer to 4 decimal places.)d. If the PV of $10 a year for three years is $25.45, what is the three-year annuity factor? (Do not round intermediate calculations.Round your answer to 4 decimal places.)e. From your answers to (c) and (d), calculate the three-year discount factor. (Do not round intermediate calculations. Round youranswer to 4 decimal places.)a.Interest rate%b. Discount factorc. Annuity factord. Annuity factore.Discount factor

Answered: a. If the one-year discount factor is…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter5: Time Value Of Money

Section: Chapter Questions

Problem 27P

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Similar questions

Question 6 Compute the present value of an $1,200 payment made in 9 years when the discount rate is 11 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present Value
Question 7 Consider a $1,100 deposit earning 9 percent interest per year for four years. What is the future value? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future value-- How much total interest is earned on the original deposit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Total Interest Earned-- How much is interest earned on interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Interest Earned On Interest--
Question 5 What is the present value of a $360 payment in one year when the discount rate is 9 percent? (Round your answer to 2 decimal places.) Future value
A 2 - 4 a i This question consists of four main parts. When performing the calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places. If you save $200 per month for 10 years at 12% annual percentage rate with monthly compounding, what is the future value annuity factor?
Q 18 To borrow $1,100, you are offered an add-on interest loan at 6 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year. Compute the three equal payments. (Round your answer to 2 decimal places.) THREE EQUAL PAYMENTS?
D3) Finance Jeff bought an annuity immediate for $45.24. This annuity immediate is designed such that payments start at $1, increasing by annual amounts of $1 to a final payment of $n and then decrease by annual amounts of $1 to a final payment of $1. Using an annual effective interest rate of 16%, calculate n.
question 6 A loan is offered with monthly payments and a 9.25 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Effective annual rate %
Question content area top Part 1 (Present value of a perpetuity) At a discount rate of 17.50%, find the present value of a perpetual payment of $2,500 per year. If the discount rate were lowered to 8.75%, half the initial rate, what would be the value of the perpetuity? Question content area bottom Part 1 a. If the discount rate were 17.50%, the present value of the perpetuity is $enter your response here. (Round to the nearest cent.) Part 2 b. If the discount rate were lowered to 8.75%, half the initial rate, the present value of the perpetuity is $enter your response here. (Round to the nearest cent.)
QUESTION 43 A student wants save for college which begins in five years. How much will the student save assuming equal deposits of $2,500 at the beginning of each year and 4% interest? Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Future value of annuity due $1 Future Value of ordinary annuity of $1 4%/5 4.62990 4.45182 5.63298 5.41632 $11,574.75 $13,540.80 $14,082.45 $11,129.55

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