« previous next »

Author Question: Johnson has an annuity due that pays 600 per year for 15 years. What is the present value of the ... (Read 74 times)

dalyningkenk

  • Hero Member
  • *****
  • Posts: 598
on: Jul 10, 2018
Johnson has an annuity due that pays 600 per year for 15 years. What is the present value of the cash flows if they are discounted at an annual rate of 7.50?
 
  A) 5,296.27
  B) 5,693.49
  C) 9,000.00
  D) 9,675.00

Question 2

A series of equal periodic finite cash flows that occur at the beginning of the period are known as a/an ________.
 
  A) ordinary annuity
  B) annuity due
  C) perpetuity
  D) amortization


okolip

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: B
Explanation: B)
PV = PMT   (1 + r)1 = 600   (1.075)1 = 5,693.49.
MODE = BEGIN
INPUT 15 7.5 ? -600 0
KEY N I/Y PV PMT FV
CPT 5,693.49

Answer to Question 2

Answer: B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

H. erectus migrated out of Africa beginning about 1.8 million years ago and is first known from Geor H. erectus migrated out of Africa beginning about 1.8 million years ago and is first known from Geor
Abundant cave art after about 30,000 years ago is evidence of the importance of symbolic behavior fo Abundant cave art after about 30,000 years ago is evidence of the importance of symbolic behavior fo
Masters and Johnson’s Four-Phase Model of the Sexual Response Cycle Masters and Johnson’s Four-Phase Model of the Sexual Response Cycle
An orange-red biohazard symbol indicates that bloodborne pathogens may be present, and items should ... An orange-red biohazard symbol indicates that bloodborne pathogens may be present, and items should ...
Hospitalization per year Hospitalization per year
Jamal plans to retire in 17 years. He is saving $2000 every start of the month in a retirement ... Jamal plans to retire in 17 years. He is saving $2000 every start of the month in a retirement ...
Video: Condensation and Hydrolysis Animation

For a complete list of videos, visit our video library