1.
=10000/(6%/0.5)*(1-1/(1+6%/0.5)^(50*0.5))=78431.3911206455
2.
=10000/(6%/0.5)*1/(1-1/(1+6%/0.5))=777777.777777777
(b) What is the present worth of $10,000 payments made biannually (i.e., every two years) at...
1. (a) What is the present worth of $10,000 payments made each year at a nominal interest rate of 6%, compounded semi-annually (i.e., twice per year)? (10 points) i. For a period of 50 years? (2 points) ii. In perpetuity? (2 points) (b) What is the present worth of $10,000 payments made biannually i.e., every two years) at a nominal interest rate of 6%? a) For a period of 50 years? (2 points) b) in perpetuity (2 points)
1. (a) What is the present worth of $10,000 payments made each year at a nominal interest rate of 6%, compounded semi-annually (i.e., twice per year)? (10 points) i. For a period of 50 years? (2 points) ii. In perpetuity? (2 points)
What is an annuity? Select one: a. present worth of a series of equal payments. b. a single payment. c. a series of payments that changes by a constant amount from one period to the next. d. a series of equal payments over a sequence of equal periods. e. a series of payments that changes by the same proportion from one period to the next. Question 2 The present worth factor Select one: a. gives the future value equivalent to...
A series of equal quarterly payments of $10,000 for 15 years is equivalent to what future worth amount at an interest rate of 9% compounded at the given intervals? (a) Quarterly (b) Monthly
A series of equal quarterly payments of $10,000 for 15 years is equivalent to what future worth amount at an interest rate of 9% compounded at the given intervals? (a) Quarterly (b) Monthly
only numbers 2,3, and 6
You are trying to decide a present worth of a contract. You will receive $10,000 when the contract is signed, a $20,000 payment at the end of Year 1, and $30,000 at the end of Year 2. and $40,000 at the end of Year 3, and $50,000 at the end of Year 4 when the project is completed. Your annual costs for this project are $10,000 per year. What is the present worth of the...
value: 10.00 points Payments of $1500 will be made at the end of every quarter for 13.5 years. a. Using a nominal rate of 7.5% compounded semiannually, calculate the annuity's present value. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value $ b. Using a nominal rate of 7.5% compounded semiannually, calculate the annuity's future value (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value $
Page 2 of 6 Problem 2 A certain U.S. Treasury bond that matures in 15 years has a $10,000 face value. This means that the bondholder will receive $10,000.00 cash when the bond's maturity date is reached. The bond pays an annual nominal interest of 8% of its face value in semi-annual installments starting at the end of the 1st semi-annual period. a) Draw a cash flow diagram showing bond payments. b) What is its present worth. PW, ifthe prevailing...
(1 point) Problem 9 - Annuities with "Off Payments" A perpetuity pays 8000 at the end of every 6 years forever. The nominal annual interest rate is 6% compounded monthly. The present value of this perpetuity is PV = ||
2. What is the present worth of a series of equal end-of-quarter payments of $1,500 if the series extends over a period of eight years at 9% interest compounded monthly? (15 points) You are not required to calculate the final answer for this question. You will get full credits with the case number (I/II/III), the complete first three steps, and the last step with the factor equation (in last step clearly showing which factor, what the interest rate is, and...
3. Find the present value of an annuity-due with payments of $1,800 every 6 months for 8 years at a nominal rate of interest of 5% per annum compounded semian- nually. Answer: $24,086.48