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 121 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?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Part of the Hubble Ultra-Deep Field image showing a typical section of space containing galaxies int Part of the Hubble Ultra-Deep Field image showing a typical section of space containing galaxies int
The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago
Example of Reconciling a Bank Statement Example of Reconciling a Bank Statement
The remarkably complete skull of a 3-year-old Australopithecus girl; the fossil is 3.3 million ... The remarkably complete skull of a 3-year-old Australopithecus girl; the fossil is 3.3 million ...
Elizabeth, a married 35-year-old woman, always thought that she followed a sensible diet Elizabeth, a married 35-year-old woman, always thought that she followed a sensible diet
Mishu wants to invest an inheritance of $20,000 for one year. His credit union offers 8.85% for ... Mishu wants to invest an inheritance of $20,000 for one year. His credit union offers 8.85% for ...
Video: Semidiscontinuous DNA replication

For a complete list of videos, visit our video library