Chapter 3 section 5

Chapter 3 section 5 - due paying annual payments of 1200...

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Chapter 3, Section 5 28. (S11HW) A monthly annuity immediate pays 100 per month for 12 months. Calculate the accumulated value 12 months after the last payment using a nominal rate of 4% compounded monthly. 29. (S11HW) A monthly annuity due pays 100 per month for 12 months. Calculate the accumulated value 12 months after the last payment using a nominal rate of 4% compounded monthly. 30. (S11HW) A monthly annuity due pays 100 per month for 12 months. Calculate the accumulated value 24 months after the first payment using a nominal rate of 4% compounded monthly. 31. (S11HW) Calculate the current value at the end of 5 years of an annuity
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Unformatted text preview: due paying annual payments of 1200 for 12 years. The annual effective interest rate is 6%. 32. (S11HW) Calculate the present value of an annuity immediate with 20 annual payments of 500 if annuity does not start until five years have passed. The annual effective interest rate is 8%. 33. (S11HW) John buys a series of payments. The first payment of 50 is in six years. Annual payments of 50 are made thereafter until 14 total payments have been made. Calculate the price John should pay to realize an annual effective return of 7%. Answers: 28. 1272.04 29. 1272.04 30. 1276.28 31. 14,27132. 3341.03 33. 311.77...
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