Ask Question
BusinessBusiness
3 October, 10:17

A 20-year annuity pays 100 every other year beginning at the end of the second year, with additional payments of 300 each at the ends of years 3, 9 and 15. The effective annual interest rate is 4 percent. Calculate the present value of the annuity.

+3
Answers (2)
  1. 3 October, 10:23
    0
    Approximately 1310

    Explanation:

    = 100 / 1.042 + 300 / 1.043 + 100 / 1.044 + 100 / 1.046 + 100 / 1.048 + 300 / 1.049 + 100 / 1.0410 + 100 / 1.0412 + 100 / 1.0414 + 300 / 1.0415 + 100 / 1.0416 + 100 / 1.0418 + 100 / 1.0420

    = 1,310 Approximately
  2. 3 October, 10:24
    0
    1,310

    Explanation:

    = 100 / 1.042 + 300 / 1.043 + 100 / 1.044 + 100 / 1.046 + 100 / 1.048 + 300 / 1.049 + 100 / 1.0410 + 100 / 1.0412 + 100 / 1.0414 + 300 / 1.0415 + 100 / 1.0416 + 100 / 1.0418 + 100 / 1.0420

    = 1,310 Approximately

    So the correct answer is Approximately

    ,310
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A 20-year annuity pays 100 every other year beginning at the end of the second year, with additional payments of 300 each at the ends of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Mark expects the value of currency X to appreciate in the near future. Hence, he delays the collection of payments from foreign customers until the next month. Which tactic is Mark making use of to minimize the foreign exchange exposure
Answers (1)
Purchases that have substantial social or economic consequences: question 13 options: represent routine purchases that pose little risk. represent high-involvement purchase decisions.
Answers (1)
If a borrower is required to provide collateral, then the loan is considered: a. unsecured b. secured c. prime d. subprime
Answers (1)
How did those involved in the British phone hacking scandal break the law? A:They published negative information B:They used shady ways of gathering information C:They bribed public officials D:They made people look bad
Answers (1)
A firm with market power has an inverse demand curve of P = 450 - 5Q and marginal cost of MC = 40Q, where Q is measured in thousands. What is the deadweight loss from market power at the firm's profit-maximizing output level? A. $280,000 B. $9,400 C.
Answers (1)
New Questions in Business
5. Brokers such as PayPal benefit online businesses because they do not charge fees like credit cards. they deliver the money to the business immediately. they cannot store credit card numbers.
Answers (1)
The market value of Firm L's debt is $200,000 and its cost of debt is 7%. The firm's equity has a market value of $400,000, its earnings are growing at a 4% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%.
Answers (1)
Owners of the restaurant in A. anticipate that in one year their demand will double as long as they can provide good service to their customers. How much will they have to increase their service capacity to stay out of the critical zone?
Answers (1)
Balance sheet and income statement data indicate the following: Bonds payable, 11% (due in 15 years) $1,023,237 Preferred 8% stock, $100 par (no change during the year) $200,000 Common stock, $50 par (no change during the year) $1,000,000 Income
Answers (1)
The pricing function is an integral part of the companies :
Answers (1)
Home » Business » A 20-year annuity pays 100 every other year beginning at the end of the second year, with additional payments of 300 each at the ends of years 3, 9 and 15. The effective annual interest rate is 4 percent. Calculate the present value of the annuity.
Sign Up Forgot Password?