You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is2.5%. How much will you have to invest? (Hint: Looking for present value)Entering your answer:. No dollar signs.. Round to the nearest cent (2 decimal places). Use commas as appropriate.Only enter the numerical value, no variables, no equal signs

given, A= $1000 n=5 m=4 (quarterly compounding) Quarterly rate = 2.5%

You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is 2.5%. How much will you have to invest? (Hint: Looking for present value)

You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is 2.5%. How much will you have to invest? (Hint: Looking for present value)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is
2.5%. How much will you have to invest? (Hint: Looking for present value)
Entering your answer:
. No dollar signs.
. Round to the nearest cent (2 decimal places)
. Use commas as appropriate.
Only enter the numerical value, no variables, no equal signs

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