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FV of an ordinary annuity due 7. An annuity makes 25 annual payments of $2,000 with the first payment coming today. What is the future value of this as of 25 years from now if the interest rate is 9.5%?

FV of an ordinary annuity due 7. An annuity makes 25 annual payments of $2,000 with the first payment coming today. What is the future value of this as of 25 years from now if the interest rate is 9.5%?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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FV of an ordinary annuity due 7. An annuity makes 25 annual payments of $2,000 with the first payment coming today. What is the future value of this as of 25 years from now if the interest rate is 9.5%? PV of a perpetuity 8. What's the present value of a perpetuity that pays $300 per year if the appropriate interest rate is 6.5%? PV of an uneven cash flow stream 9. At a rate of 9%, what is the present value of the following cash flow stream? $0 at Time 0; $1,000 at the end of Year 1; $3,000 at the end of Year 2; S0 at the end of Year 3; and $5,000 at the end of Year 4?
Transcribed Image Text:FV of an ordinary annuity due 7. An annuity makes 25 annual payments of $2,000 with the first payment coming today. What is the future value of this as of 25 years from now if the interest rate is 9.5%? PV of a perpetuity 8. What's the present value of a perpetuity that pays $300 per year if the appropriate interest rate is 6.5%? PV of an uneven cash flow stream 9. At a rate of 9%, what is the present value of the following cash flow stream? $0 at Time 0; $1,000 at the end of Year 1; $3,000 at the end of Year 2; S0 at the end of Year 3; and $5,000 at the end of Year 4?
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