This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Arun wants to have 500 at the END of every year for 20 years. The bank pays 11 interest, compounded ... (Read 122 times)

vinney12

  • Hero Member
  • *****
  • Posts: 586
on: Jun 24, 2018
Arun wants to have 500 at the END of every year for 20 years. The bank pays 11 interest, compounded annually. Arun calculates that the present value of the ordinary annuity is 3,981.67. What would be the present value if payments were to be received at the BEGINNING of every period rather than the END?
 A) 5,183.91
  B) 5,525.98
  C) 4,043.26
  D) 4,419.65

Question 2

Your bank pays 9 interest, compounded annually. Use the appropriate formula to find how much you should deposit now to yield an annuity payment of 800 at the END of each year, for 10 years.
 A) 5,134.13
  B) 6,099.86
  C) 5,596.20
  D) 6,454.28


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aprice35067

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 24, 2018
Answer to Question 1

D

Answer to Question 2

A


vinney12

  • Hero Member
  • *****
  • Posts: 586
Reply #2 on: Jun 24, 2018
Thank you :)


aprice35067

  • Sr. Member
  • ****
  • Posts: 337
Reply #3 on: Jun 24, 2018
Happy to help you


« previous next »
 

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

The Dingo was the first placental mammal introduced to Australia, around 4000 years ago The Dingo was the first placental mammal introduced to Australia, around 4000 years ago
Stepwise approach for managing asthma in adults and patients 12 years and older. Stepwise approach for managing asthma in adults and patients 12 years and older.
How to calculate compound interest (Part 1) How to calculate compound interest (Part 1)
Hospitalization per year Hospitalization per year
Types of ecosystem service vs. total global value per year Types of ecosystem service vs. total global value per year
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Video: Four Giant Convection Cells oF Earth

For a complete list of videos, visit our video library