Homework Answers
Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate
1.Present value=1.05*800[1-(1.05)^-12]/0.05
=800*9.306414218
=7445.13(Approx).
2.Present value=1.08*800[1-(1.08)^-12]/0.08
=800*8.138964258
=6511.17(Approx).
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Q 42,43,44,45,47 CHAPTER 6 The Time Value of Money 219 Perpetulties 6-42. Calculating the present value...
Q
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question from 1 through 6 • value of each ance Annuities lab.com s onine 6-1. (Calculating the future value of an or...
question from 1 through 6
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(Related to Checkpoint 6.2) (Present value of an ordinary annuity) What is the present value of...
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Q
42,43,44,45,47
CHAPTER 6 The Time Value of Money 219 Perpetulties 6-42. Calculating the present value of a perpetuity) (Related to Checkpoint page 206) What is the present value of the following? a. A $300 perpetuity discounted back to the present at 8 percent b. A $1,000 perpetuity discounted back to the present at 12 percent C. A $100 perpetuity discounted back to the present at 9 percent d. A $95 perpetuity discounted back to the present at 5 percent...
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question from 1 through 6
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