Chapter 6 part 1 - Chapter 6 part 1 initial submission...

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6) Quarterly $1,623.65 semiannual $1,622.40 Quaterly investment should be chosen because it generates more money 7) $26,897.78 8) $4,467.16 9) An anuity requires the following: Periodic payments or receipts(rents), the same length interval bet The difference in both is when if rent occurs at the end of a period of ordinary annuity, in determining 10) Payment $13,169.38 11) payment $43,094.16 12) Payment at the beginning of year $39,176.51 13) When if rent occurs at the end of a period of ordinary annuity, in determining the futu 14) The present value of an ordinary annuity is the final rent based on the number of ren 15) Rate 8% 18) Rate 8% BE6-1 Investment compounded annually $18,895.68 investment compounded semiannually $18,979.79 BE6-4 years 11.00 BE6-7 $170,228.06 $229,771.94 Is the amount joe will have to use from his heritance
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Unformatted text preview: Chapter 6 part 1 initial submission (questions 6,7,8,9,10,11,12,13,14,15,18,BE6-1, BE6-4, BE6-7) due today tween such rents, and compounding of interest once each interval. the future value of an annuity, there will be one less interest period than if the rents occur at the begin ure value of an annuity, there will be one less interest period than if the rents occur at the beginning of nt periods where as the the present value of an annuity due is always one fewer discount period. To fin at 8am nning of the period of the annuity due f the period of the annuity due nd the present value of an annuity due factor, multiply the present va lue of an ordinary annuity factor r by 1 plus the interest rate that is 1+ i...
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This note was uploaded on 04/14/2011 for the course ACCT 3202 taught by Professor Kenmichael during the Spring '11 term at University of Minnesota Duluth.

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Chapter 6 part 1 - Chapter 6 part 1 initial submission...

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