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Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent.

Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent.

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter2: Using Financial Statements And Budgets
Section: Chapter Questions
Problem 5FPE
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c. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent. 2$ d. A security has a cost of $1,000 and will return $2,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 34.3 million people, and its population is expected to grow by 3% annually. How long will it take for the population to double? Round your ans to the nearest whole number. years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 18%. Then find the FV of that same annuity. Round your answers to the nearest cent PV of ordinary annuity: $ FV of ordinary annuity: $ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ h. What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding? Round your answers to the nearest cent. FV with semiannual compounding: $ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Back Next MacBook Air 80 DII DD F2 F3 F4 FO F7 F9 F10 F12 @ 23 $ & 2 3 4 5 6 8 9 W E R T Y U P S D H J K V B N .... V
Transcribed Image Text:c. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent. 2$ d. A security has a cost of $1,000 and will return $2,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 34.3 million people, and its population is expected to grow by 3% annually. How long will it take for the population to double? Round your ans to the nearest whole number. years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 18%. Then find the FV of that same annuity. Round your answers to the nearest cent PV of ordinary annuity: $ FV of ordinary annuity: $ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ h. What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding? Round your answers to the nearest cent. FV with semiannual compounding: $ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Back Next MacBook Air 80 DII DD F2 F3 F4 FO F7 F9 F10 F12 @ 23 $ & 2 3 4 5 6 8 9 W E R T Y U P S D H J K V B N .... V
5000 4000 D. 3000 2000 1000 5 3 Year 4 C. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent. d. A security has a cost of $1,000 and will return $2,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 34.3 million people, and its population is expected to grow by 3% annually. How long will it take for the population to double? Round y to the nearest whole number. years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 18%. Then find the FV of that same annuity. Round your answers to the cent. PV of ordinary annuity: $ FV of ordinary annuity: $ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. Back MacBook Air 80 DII 000 DD FI F2 F3 F4 F6 F7 F9 F10 @ 23 2 3 4 5 6 8 Q W E R Y A S F H J K C V command command opt B Future Value (S)
Transcribed Image Text:5000 4000 D. 3000 2000 1000 5 3 Year 4 C. Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest cent. d. A security has a cost of $1,000 and will return $2,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 34.3 million people, and its population is expected to grow by 3% annually. How long will it take for the population to double? Round y to the nearest whole number. years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 18%. Then find the FV of that same annuity. Round your answers to the cent. PV of ordinary annuity: $ FV of ordinary annuity: $ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. Back MacBook Air 80 DII 000 DD FI F2 F3 F4 F6 F7 F9 F10 @ 23 2 3 4 5 6 8 Q W E R Y A S F H J K C V command command opt B Future Value (S)
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