Question

Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 3 2021, of a five-period annual annuity of $3,800 under each of the following situations (EV. 51. PV 51. EVA 051. PVA O SI EVADA $1 and PVAD of $11) (Use appropriate factor(s) from the tables provided.) Ched my w 1. The first payment is received on December 31, 2022, and interest is compounded annually 2. The first payment is received on December 31, 2021, and interest is compounded annually 3. The first payment is received on December 31, 2022, and interest is compounded quarterly OOK nt Complete this question by entering your answers in the tabs below. ces Required 1 Required 2 Required 3 The first payment is received on December 31, 2022, and interest is compounded quarterly. (Round your final answers to nearest whole dollar amount.) PV - 12/31/2021 Dep 12 - 12/31/2023 $ Deposit 3,800 3,800 3,800 3,800 12/31/2024 12/31/2025 12/31/2026 3,800 S < Required 2 Required 3 < Prey 4 of 10 Score answer > 2. Chapter 2 slides ....pptx O Ö E arch

Answer 1

Book1 - Excel Sign in o X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do & Share Σ AutoSum Cut Es Copy Calibri - 14 Å Til ab Wrap Text General Normal Bad AY O Fill - Paste BIU- A - % Insert Delete Format Merge & Center - Neutral .00 30 Format Painter Conditional Format as Good Formatting Table Styles Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some apps. Update now X D10 X fx А B C D E F 1 Solution-1 2 3 4 PV Factor based on 5 Table or Calculator function 6 Payment PVA OF $1 $3800 7 n= 5 12.00% 3.605 8 i= 9 PV Factor 10 PV-12/31/2021 11 $13699 12 13 14 15 16 17 18 19 20 21 22 Sheet1 Sheet2 Sheet3 + Ready 100% O Type here to search 1 O a I () ENG 11:14 PM 17-09-2020

Book1 - Excel Sign in o X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do & Share Σ AutoSum Cut Eg Copy Calibri - 14 Å lili ab Wrap Text General Bad AY O Fill - Paste BIU- A - % Merge & Center - Insert Delete Format .00 Normal Conditional Format as Good Formatting Table Styles Neutral 20 Format Painter Clear Sort & Find & Filter - Select Editing Number Cells Clipboard Font Alignment UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some apps. Update now X F13 X fie A B D F F G H J K L M N. P. 0 R S 1 Solution- 2 3 4 PV Factor based on 5 Table or calculation function 6 Payment PVAD of $1 $3800 7 n= 5 12.00% 4.037 8 i= 9 PV Factor 10 PV-12/31/2021 11 $15341 12 13 14 15 16 17 18 19 20 21 22 Sheet1 Sheet2 Sheet3 + Ready 100% Type here to search 1 O a I () ENG 11:14 PM 17-09-2020

Book1 - Excel Sign in o X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do & Share Σ AutoSum Cut Es Copy Calibri - 14 Å ab Wrap Text General Bad AY O Fill - Paste BIU- A - 0% Insert Delete Format Merge & Center - .00 Normal Conditional Format as Good Formatting Table Styles Neutral 20 Format Painter Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some apps. Update now X 115 fr D G H 1 J K M N O Р 0 R S A B с E F 1 Solution-3 2 3 Quarterly interest rate = 12%/4 = 3% 4 5 Effective annual interest rate = 1*(1+0.03)^4-1 = 12.55% 6 7 Deposit Date i= Deposit PV Factor Present Value 8 12/31/2022 12.55% 1 $3800 0.88849 $3376 9 12/31/2023 12.55% 2 $3800 0.78942 $3000 10 12/31/2024 12.55% 3 $3800 0.70139 $2665 11 12/31/2025 12.55% 4 $3800 0.62319 $2368 12 12/31/2026 12.55% 5 $3800 0.55369 $2104 13 Total $13513 14 n= 15 16 17 18 19 20 21 22 Sheet1 Sheet2 Sheet3 + Ready 100% Type here to search 1 O a TT () ENG 11:14 PM 17-09-2020