Ans:- we will use the Present Value of the annuity formula to find the answer.
PV of an annuity is given by P*[1-(1+r)^-n] / r, where P is the Periodic Payment, r is the rate of return and n is the number of periods.
(a) PV = $8700*[1-(1+0.07)^-9] / 0.07 = $56,682.52
(b) PV = $17,800*[1-(1+0.08)^-4] / 0.08 = $58,955.86
(c) PV = $27,500*[1-(1+0.11)^-12] / 0.11 = $178,539.79
What is the present value of the following? Use Appendix B as an approximate answer, but...
What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,300 in 13 years at 5 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. $18,600 in 3 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value c. $28,100 in 9 years at 8...
What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $7,800 in 6 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. $16,500 in 3 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. $25,700 in 9 years at 8 percent? (Do...
What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,600 in 5 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. $17,600 in 3 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. $27,100 in 9 years at 7 percent? (Do not...
How much would you have to invest today to receive the following? Use Appendix B or Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $15,250 in 11 years at 7 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. $19,600 in 18 years at 11 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c....
How much would you have to Invest today to receive the following? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. $7,800 each year for 20 years at 6 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Present value 553,000 each year for 25 years at 12 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.)...
Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.a-1. Assuming you could earn 6 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)1250 -> Present value = _________ a-2. If you...
a. What is the present value of $240,000 to be received after 30 years with a 16 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. Would the present value of the funds in part a be enough to buy a $2,800 concert ticket? No Yes
Your father offers you a choice of $125,000 in 11 years or $45,500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 8 percent, what is the present value of the $125,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) a-2. Which offer should you choose? $45,500 today $125,000 in 11 years b-1. Now assume the offer is...
Your uncle offers you a choice of $112,000 in 10 years or $51,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 8 percent, what is the present value of the $112,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value
Can someone please break this down so I know how to work this problem? What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,400 in 12 years at 11 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. $17,200 in 6 years at 9 percent? (Do not round intermediate calculations. Round your final answer...