Suppose the interest rate is 6.9% APR with monthly compounding. What is the present value of an annuity that pays $100 every monthsix months for four years? (Note: Be careful not to round any intermediate steps less than six decimal places.) The present value of the annuity is $______ (Round to the nearest cent.)
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?Suppose the interest rate is 7.7% APR with monthly compounding. What is the present value of an annuity that pays $100 every three months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.) The present value of the annuity is $_______ (Round to the nearest cent.)Suppose the interest rate is 8.7% APR with monthly compunding. What is the present value of an annuity that pays $105 every six months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places. The present value of the annuity is? $ (Round to the nearest cent.)
- Suppose the interest rate is 8.0% APR with monthly compunding. What is the present value of an annuity that pays $100 every six months for five years? (Be careful not to round any intermediate steps less than six decimal places.)Suppose the interest rate is 8.3% APR with monthly compounding. What is the present value of an annuity that pays $105 every three months for seven years? (Note: Be careful not to round any intermediate steps less than six decimal places.) The present value of the annuity is $ (Round to the nearest cent.) (...)Suppose the interest rate is 9.3% APR with monthly compounding What is the present value of an annuity that pays $80 every three months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.) The present value of the annuity is $(Round to the nearest cent.) KLX
- Suppose the interest rate is 8.0% APR with monthly compounding. What is the present value of an annuity that pays $100 every six months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.)Suppose the interest rate is 6.9% APR with monthly compounding. What is the present value of an annuity that pays $100 every three months for six years? (Note:Be careful not to round any intermediate steps less than six decimal places.)Suppose you are going to receive $17,500 per year for five years. The appropriate interest rate is 10 percent. a-1. 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.) a-2. What is the present value of the payments if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose you plan to invest the payments for five 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.) b-2. 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.) c-1. Which has the higher present value, the ordinary annuity or annuity due? c-2. Which has the higher future value? a-1. Present…
- Suppose the interest rate is 6.4% APR with monthly compounding. What is the present value of an annuity that pays $95 every 6 months for 7 years? (Note: Be careful not to round any intermediate steps less than six decimal places.)Suppose you are going to receive $14,500 per year for five years. The appropriate interest rate is 8 percent. a-1. What is the present value of the payments if they are in the form of an ordinary annuity? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a-2. What is the present value of the payments if the payments are an annuity due? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? Note: Do not round intermediate..Suppose the interest rate is 6.9 APR with monthly compounding. What is the present value of an annuity that pays $110 every three months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.) Question content area bottom Part 1 The present value of the annuity is $ enter your response here. (Round to the nearest cent.)