Pay ments are to oc c ur at the end of eac h y ear

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: t an annual rate of 6 perc ent. Pay ments are to oc c ur at the end of eac h y ear. (Round your PV fa ctor to 3 de cim a l pla ce s a nd fina l a nsw e r to the ne a re st dolla r a m ount. Om it the "$" sign in your re sponse .) Pres ent value $ 110,400 b. Determine the pres ent value $9,200 to be rec eived today , as s uming that the money will be inves ted in a two-y ear c ertific ate of depos it earning 8 perc ent annually . (Round your PV fa ctor to 3 de cim a l pla ce s a nd fina l a nsw e r to the ne a re st dolla r a m ount. Om it the "$" sign in your re sponse .) Pres ent value $ 9,200 c. Determine the pres ent value of $300 to be paid monthly for 36 months , with an additional "balloon pay ment" of $12,000 due at the end of the thirty -s ix th month,...
View Full Document

This note was uploaded on 01/30/2014 for the course ACC 111 taught by Professor Angela during the Fall '08 term at Delaware County CC.

Ask a homework question - tutors are online