Question

(1 point) (Exercise 4.33) A series of payments is made at the beginning of each year...

(1 point) (Exercise 4.33) A series of payments is made at the beginning of each year for 22 years with the first payment being $220. Each subsequent payment through the 11th year increases by 4% from the previous payment. After the 11th payment, each payment decreases by 4% from the previous payment. Calculate the present value of these payments at the time the first payment is made using an annual effective rate of 7.7%

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A 10 year loan is being repaid with payments at the end of each year in...
A 10 year loan is being repaid with payments at the end of each year in the following manner. The first payment is $5,000 and each subsequent payments decreases by $400. Find the original amount borrowed. Assume i(4) = 6%.
Instruction: Clearly present the cash flow diagram(s), equivalency model(s), assumptions made and detailed calculations for each...
Instruction: Clearly present the cash flow diagram(s), equivalency model(s), assumptions made and detailed calculations for each problem as applicable. Question. A series of six real dollar payments are made. The first payment made at the end of the first year is for $12,000 and each subsequent payment increases at the rate of 5% per year. If the inflation rate has averaged 3% and the market interest rate is 12%, determine the present of the series.
What is the present value of a series of payments received each year for 11 years,...
What is the present value of a series of payments received each year for 11 years, starting with $300 paid one year from now and the payment growing in each subsequent year by 10%? Assume a discount rate of 12%. Please round your answer to the nearest cent.
1. Find the present value of a 30-year annuity-due with semiannual payments in which the first...
1. Find the present value of a 30-year annuity-due with semiannual payments in which the first payment is $20,000, the second payment is $21,600, the third payment is $23,328, the fourth payment is $25,194.24, etc., assuming an annual effective rate of interest of 16%. 2. Find the present value of a varying perpetuity-DUE in which payments are made every two years with the first payment being $245, and each payment thereafter is $150 larger than the previous payment. Assume the...
What is the present value of a series of 6 payments, each $1,400, to be made...
What is the present value of a series of 6 payments, each $1,400, to be made at the end of years 1,2,3,4,5, 6? Assume that the interest rate is 15 * Take each amount and calculate its present value in year 4
1. Perpetuities in arithmetic progression. If a perpetuity has first payment P and each payment increases...
1. Perpetuities in arithmetic progression. If a perpetuity has first payment P and each payment increases by Q, then its present value, one period before the first payment, is P/i + Q/i^2 Using this formula, find the present value of a perpetuity-immediate which has annual payments with first payment $360 and each subsequent payment increasing by $40, at annual interest rate 1.3%. The answer should be ($264,378.70). 2. Filip buys a perpetuity-immediate with varying annual payments. During the first 5...
Suppose that a loan is being repaid with 20 annual payments with the first payment coming...
Suppose that a loan is being repaid with 20 annual payments with the first payment coming one year from now. The first 5 payments are for $250, the next 8 are $310 each, and the final 7 are $430 each. If the effective rate of interest is 6.3%, how much interest is in the 11th payment? Answer = $ (3 decimal place)
Johnny takes out a loan at 5% effective. He makes payments at the end of each...
Johnny takes out a loan at 5% effective. He makes payments at the end of each year for 10 years. The first payment is $500, and each of the subsequent payment increases by $20 per year. Find the principal portion of the 6th payment. Please show all work by hand. Thank you.
A contract calls for the payment of P539,166 at the beginning of each year for the...
A contract calls for the payment of P539,166 at the beginning of each year for the next 9 years, and P132,686 at the beginning of each year for the following 5 years.  Find the present value of the payments if money is worth 9% effective.
ANSWER THE FOLLOWING: A)A sequence of quarterly payments o P6,267 each, with the first payment due...
ANSWER THE FOLLOWING: A)A sequence of quarterly payments o P6,267 each, with the first payment due at the end of 2 years and the last payment at the end of 13 years. Find the present worth of these payments if money is worth 5% compounded quarterly. B)A manufacture borrows P2,211,340 with interest at 6% compounded monthly, and agrees to discharge the loan by a sequence of equal monthly payments for 4 years with the first payment at the beginning of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT