Nancy Billows promised to pay her son $600 quarterly for 4 years. If Nancy can invest her money at 8 percent in an ordinary annuity, Nancy must invest how much today? (Use the tables in the handbook.) Is 16 periods correct at 8% interest? If so the table rate for present value of an annuity is 8.8514%. Do I take $600.00 x 8.8514= 5310.84? Is that right? I don't want to write out the entire table so if you can tell me the periods and the rate which I know is 8% I can tell you the table rate. $10,759.38 $10,759.83 $8,146.62 $8,478.27 None of these
Nancy Billows promised to pay her son $600 quarterly for 4 years. If Nancy can invest her money at 8 percent in an ordinary annuity, Nancy must invest how much today? (Use the tables in the handbook.) Is 16 periods correct at 8% interest? If so the table rate for present value of an annuity is 8.8514%. Do I take $600.00 x 8.8514= 5310.84? Is that right? I don't want to write out the entire table so if you can tell me the periods and the rate which I know is 8% I can tell you the table rate. $10,759.38 $10,759.83 $8,146.62 $8,478.27 None of these
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 15E
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Question
Nancy Billows promised to pay her son $600 quarterly for 4 years. If Nancy can invest her money at 8 percent in an ordinary
Is 16 periods correct at 8% interest? If so the table rate for
I don't want to write out the entire table so if you can tell me the periods and the rate which I know is 8% I can tell you the table rate.
|
|
$10,759.38 |
|
|
$10,759.83 |
|
|
$8,146.62 |
|
|
$8,478.27 |
|
|
None of these |
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