Question

Asked Sep 30, 2019

89 views

If the present value of an ordinary, 6-year annuity is $8,800 and interest rates are 9.5 percent, what’s the present value of the same annuity due? **(Round your answer to 2 decimal places.****)**

**PV = $_______.__**

Step 1

An annuity due is a type of annuity in which payments are made at regular time interval and at the beginning of every period.

Step 2

The present value of the same annuity due is calculated as:

Step 3

Tagged in

Find answers to questions asked by student like you

Show more Q&A

Q: Problem 2-9 Statement of Cash Flows (LG2-4) Ramakrishnan, Inc. reported 2018 net income of $20 milli...

A: Prepared Cash Flow Statement of Ramakrishnan Inc. using Excel:

Q: What is the future value of the following set of cash flows 4 years from now? Assume interest rate 6...

A: Horizon is n = 4 years from now.FVn = The future value at the end of period n, of a cash flow occuri...

Q: Queen, Inc., has a total debt ratio of .46. a. What is its debt-equity ratio? (Do not round ...

A: Assume that the total assets of Q Inc., are $100 million. Hence, calculate the value of total debt a...

Q: I asked this question before, and got an answer, but I have a question about the response that was g...

A: The formula that you shared from the textbook is used for time-value-of-money calculations. Such a f...

Q: Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite per...

A: Calculate the value of preferred stock as follows:

Q: Fiduciary responsibilities are critical part of which relationship---customer or client? Why?

A: Fiduciary responsibility is the harmonious relationship of trust between a fiduciary agent and a cus...

Q: The company stock increases dividend by 5% each year and the expecteddividend in 5 years is $5. Anal...

A: Suppose the dividend paid recently=$xDividend paid in year 1=x*(1+growth rate)^1Dividend paid in yea...

Q: A project costs $1 million and has a base-case NPV of exactly zero (NPV sign. Enter your answers in ...

A: a.Calculation of Adjusted Present Value:

Q: Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches, Inc. You...

A: Computation of ROE:Hence, the ROE is 3.72%.