Complete the following for the present value of an ordinary annuity. (Use Table 13.2) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Amount of annuity expected $ 14,300 Payment Quarterly Time 3 years Interest rate 8 % Present value (amount needed now to invest to receive annuity)
Complete the following for the present value of an ordinary annuity. (Use Table 13.2) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Amount of annuity expected $ 14,300 Payment Quarterly Time 3 years Interest rate 8 % Present value (amount needed now to invest to receive annuity)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Complete the following for the present value of an ordinary annuity. (Use Table 13.2)
Note: Do not round intermediate calculations. Round your answer to the nearest cent.
Amount of
annuity expected
14,300
Payment
Quarterly
Time
3 years
Interest rate
8 %
Present value (amount
needed now to invest
to receive annuity)
Transcribed Image Text:TABLE 13.2
Present value of an annuity of $1
½%
6%
7%
1%
0.9901
1.9704
2%
0.9804
3%
0.9709
4%
0.9615
0.9950
1.9851
1.9416
1.9135
1.8861
5%
0.9524
1.8594
2.7232
3.5459
4.3295
2.9702
2.9410 2.8839
2.7751
2.8286
3.7171
3.9505
3.9020
3.6299
4.9259
4.4518
3.8077
4.8534 4.7134 4.5797
5.7955 5.6014
6.7282 6.4720
5.8964
5.2421
6.8621
5.4172
6.2303
7.0197
6.0021
7.8230
7.6517 7.3255
8.7791
8.5660
7.7861
8.1622
8.9826
5.0757
5.7864
6.7327 6.4632
7.4353 7.1078
8.1109 7.7217
8.3064
8.8632
9.7304
9.4713
8.5302
10.6770 10.3676 9.7868
9.2526
8.7605
8%
0.9434 0.9346 0.9259
1.8334 1.8080 1.7833
2.6730 2.6243 2.5771
3.4651 3.3872 3.3121
4.2124 4.1002 3.9927
4.9173 4.7665 4.6229
5.5824 5.3893 5.2064
6.2098
5.9713 5.7466
6.8017 6.5152 6.2469
7.3601 7.0236 6.7101
7.8869 7.4987 7.1390
11.2551 10.5753
8.3838 7.9427 7.5361
12.1337
9.9856
8.8527 8.3576 7.9038
13.4887 13.0037 12.1062 11.2961 10.5631 9.8986
8.2442
14.4166 13.8650 12.8492 11.9379 11.1184 10.3796 9.7122 9.1079 8.5595
15.3399 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514
16.2586 15.5622 14.2918 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216
17.1728 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719
18.0824 17.2260 15.6784 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036
18.9874 18.0455 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181
23.4457 22.0231 19.5234 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748
27.7941 25.8077 22.3964 19.6004 17.2920 15.3724 13.7648 12.4090 11.2578
36.1723 32.8347 27.3554 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246
44.1428 39.1961 31.4236 25.7298 21.4822 18.2559 15.7619 13.8007 12.2335
11.6189
9.9540
9.3851
12.5562
11.3483 10.6350
9.3936
9.2950
8.7455
Period
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
25
30
40
50
9%
10% 11%
0.9174 0.9091 0.9009
12%
0.8929
1.6901
2.4018
1.7591 1.7355 1.7125
2.5313 2.4869 2.4437
3.2397 3.1699 3.1024 3.0373
3.8897 3.7908 3.6959 3.6048
4.4859 4.3553 4.2305 4.1114
5.0330 4.8684 4.7122 4.5638
5.5348 5.3349 5.1461 4.9676
5.9952 5.7590 5.5370 5.3282
6.4177 6.1446 5.8892 5.6502
6.8052 6.4951 6.2065 5.9377
7.1607 6.8137 6.4924 6.1944
6.4235
6.6282
7.4869 7.1034 6.7499
7.7862 7.3667 6.9819
8.0607 7.6061 7.1909 6.8109
8.3126 7.8237 7.3792 6.9740
8.5436 8.0216 7.5488 7.1196
8.7556 8.2014 7.7016 7.2497
8.9501 8.3649 7.8393 7.3658
9.1285 8.5136 7.9633 7.4694
9.8226 9.0770 8.4217 7.8431
10.2737 9.4269 8.6938 8.0552
10.7574 9.7790 8.9511 8.2438
10.9617 9.9148 9.0417
8.3045
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