Business College

Suppose you are going to receive $13,600 per year for six years. The appropriate interest rate is 8.5 percent. a. What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer 1

Answer:

a. What is the present value of the payments if they are in the form of an ordinary annuity?

present value = annual payment x annuity factor

annual payment = $13,600PV annuity factor, 8.5%, 6 periods = 4.55359

present value = $61,928.82

b. What is the present value if the payments are an annuity due?

present value = annual payment x annuity due factor

annual payment = $13,600PV annuity due factor, 8.5%, 6 periods = 4.94064

present value = $67,192.70

c. Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity?

future value = annual payment x annuity factor

annual payment = $13,600FV annuity factor, 8.5%, 6 periods = 7.42903

future value = $101,034.81

d. Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due?

future value = annual payment x annuity due factor

annual payment = $13,600FV annuity due factor, 8.5%, 6 periods = 8.0605

future value = $109,622.80

Related Questions

2.
Is marketing always appropriate for political candidates? Why or why not?
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Answers

Answer:

Yes, marketing always appropriate for political candidates.

Explanation:

Yes, marketing always appropriates for political candidates.

Political marketing is the process by which ideas are shared with the voters to gain their support. In political campaigns, the candidate uses modern marketing techniques including marketing research and commercial advertising to maximize votes.

Marketing is vital for political candidates. Therefore, the statement is true.

The main aim behind marketing is simply to influence people and ensure that people agree to a particular thing. Political marketing is used to convince the people about one's program when one is elected into a certain position.

Marketing is vital in politics as one can be able to share his views and aspirations with the public. It also ensures transparency.

In conclusion, marketing is always appropriate for political candidates.

Read related link on:

https://brainly.com/question/23880441


Markets can be characterized by the lifepan of the
assets traded. The market for assets with
a life of less than One
year is
​

Answers

Answer:

Money markets

Explanation:

The money market is a formal exchange market that brings together lenders and borrowers of short-term debt securities. The money market facilitates governments and corporates to sell short-term securities to meet their cash flow shortages.

Money markets enable institutional and retail investors with excess cash flow to invest in quality short-term investments. The money markets provide investors with options for investments and diversification.

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