
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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if the money is worth 6% compounded semi-annually, find the
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- Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $168, 000; monthly payments for 5 years; interest rate 3% .arrow_forwardAn annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for the next 6 years. Find the discounted value of these payments if the relevant interest rate is 7% per year.arrow_forwardIf a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how large are its monthly payments?arrow_forward
- Determine the value of an ordinary annuity if $100 is deposited each month into an account earning 4.1% interest compounded monthly for 25 years.arrow_forwardAssume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded monthly. How much will be in the account after 12 years?arrow_forwardAssume that you make monthly payments of $ 675 into an ordinary annuity paying 6% compounded monthly. How much will be in the account after 12 years? Amount =arrow_forward
- There is a perpetuity due in which the payments increase by 5 percent per year, and the present value of the 6’th payment is equal to the present value of the 8’th payment. The first payment is 500 dollars. Find both the effective interest rate and the present value.arrow_forwardIn a sequence of 10 annual payments of 2,000 pesos each, the first one is due at the end of 6 years. Find the present and future value of the deferred annuity if money is worth 6% compounded annually.arrow_forwardAn annuity pays $1000 at the end of each year for 5 years and then $2000 at the end of each year for the next 7 years. Find the discounted value of these payments if the relevant interest rate is 7% per year.arrow_forward
- $360,000 is invested in a perpetuity at an interest rate of 5.2% per annum. a. Find the monthly payment that the perpetuity provides. b. After six years of monthly payments, how much money remains invested in the perpetuity?arrow_forwardFind the present value of an ordinary annuity which has payments of $1400 per year for 11 years at 6% compounded annually. The present value is $ (Round to the nearest cent.)arrow_forwardIf you were to borrow $9,400 over five years at 0.10 compounded monthly, what would be your monthlypayment?arrow_forward
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