# Chapter 6 - now, and the effective annual rate is 4.5...

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1. What is the future value of a 1½-year ordinary  annuity that pays \$450 a quarter if the interest rate is 8  percent compounded quarterly?

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2. What is the future value of a 1½-year ordinary  annuity that pays \$450 a quarter if the interest rate is 8  percent compounded monthly?

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3. What is the present value of a 4-year annuity that  pays \$50 semiannually if the interest rate is 7 percent  compounded annually?

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4. What is the present value of a 3-year annuity if the  first semiannual payment of \$165 occurs 3½ years from

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Unformatted text preview: now, and the effective annual rate is 4.5 percent? 5. Consider the following series of cash flows: Month Cash Flow 1 \$200 2 \$200 3 \$ 50 4 \$400 5 \$501 If the discount rate is 6.2 percent compounded monthly, what is the present value? the future value? Using the Cash Flow menu on the financial calculator, the present value is: \$1,326.25 And the future value is:...
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## This note was uploaded on 10/13/2010 for the course USMLE na taught by Professor Na during the Spring '10 term at St. Matthew's University.

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Chapter 6 - now, and the effective annual rate is 4.5...

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