Question

a. What is the present value of a 3-year annuity of $150 if the discount rate is 7%

b. What is the present value of the annuity in (a) if you have to wait an additional year for the first payment.

Answer #1

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What is the present value of a 3-year annuity of $300 if the
discount rate is 7%? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
b. What is the present value of the annuity in (a)
if you have to wait an additional year for the first payment?
(Do not round intermediate calculations. Round your final
answer to 2 decimal places.)

A. What is the present value of a 3-year annuity of $110 if the
discount rate is 5%? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
B. What is the present value of the annuity in (a) if you have
to wait an additional year for the first payment? (Do not
round intermediate calculations. Round your final answer to 2
decimal places.)

Which of the following statements is CORRECT?
a. The present value of a 3-year,
$150 annuity due will exceed the present value of a 3-year, $150
ordinary annuity.
b. An investment that has a nominal
rate of 6% with semiannual payments will have an effective rate
that is smaller than 6%.
c. If a loan has a nominal annual
rate of 8%, then the effective rate can never be greater than
8%.
d. The proportion of the payment
that goes...

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What is the present value of an annuity of $6,000 per year, with
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(Do not round intermediate calculations and round your
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Present value
$

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