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Author Question: The future value of a 2,000 annuity due deposited at 8 percent compounded annually for each of next ... (Read 108 times)

storky111

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on: Jul 10, 2018
The future value of a 2,000 annuity due deposited at 8 percent compounded annually for each of next 10 years is: (Round to the nearest whole dollar)
 
  A) 28,974
  B) 31,291
  C) 14,494
  D) 13,420

Question 2

Your firm wishes to purchase a financial contract that provides equal end-of-the-year cash flows of 18,000 per year for the next seven years. What is the present value of these cash flows if you choose to discount them at a rate of 8 per year?
 
  What will be an ideal response?


honnalora

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Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

Answer:
PV = PMT  = 18,000  = 93,714.66.
MODE = END
INPUT 7 8 ? -18,000 0
KEY N I/Y PV PMT FV
CPT 93,714.66


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