What is the future value in 10 years of 1,500 payments received at the end ofeach year for the next 10 years? Assume an interest rate of 8%. *25,26023,47021,73018,395O 15,000What is the PV of an ordinary annuity with 10 payments of P2,700 if theappropriate interest rate is 5.5%? *P19,334P18,367P20,352P16,576O P17,449You are given the option of receiving P1,000 now or an annuity of P85 per monthfor 12 months. Which of the following is correct? *You cannot choose between the two without computing future values.The choice you would make when comparing the future value of each would be thesame as the choice you would make when comparing present values.You will always choose the lump sum payment.You will always choose the annuity.You cannot choose between the two without computing present values.

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What is the future value in 10 years of 1,500 payments received at the end of each year for the next 10 years? Assume an interest rate of 8%. * 25,260 23,470 O 21,730 18,395 O 15,000

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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Question

What is the future value in 10 years of 1,500 payments received at the end of
each year for the next 10 years? Assume an interest rate of 8%. *
25,260
23,470
21,730
18,395
O 15,000
What is the PV of an ordinary annuity with 10 payments of P2,700 if the
appropriate interest rate is 5.5%? *
P19,334
P18,367
P20,352
P16,576
O P17,449
You are given the option of receiving P1,000 now or an annuity of P85 per month
for 12 months. Which of the following is correct? *
You cannot choose between the two without computing future values.
The choice you would make when comparing the future value of each would be the
same as the choice you would make when comparing present values.
You will always choose the lump sum payment.
You will always choose the annuity.
You cannot choose between the two without computing present values.

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