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d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 35.5 million people, and its population expected to grow by 4% annually. How long will it take for the population to double? Round your answer 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 14%. 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: $

d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 35.5 million people, and its population expected to grow by 4% annually. How long will it take for the population to double? Round your answer 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 14%. 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: $

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
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 6FPE
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d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 35.5 million people, and its population is expected to grow by 4% annually. How long will it take for the population to double? Round your answer 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 14%. 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: $
Transcribed Image Text:d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. % e. Suppose California's population is 35.5 million people, and its population is expected to grow by 4% annually. How long will it take for the population to double? Round your answer 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 14%. 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: $
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