Regular or Ordinary Annuity Assignment | Top Universities
Problems
9.1 Find the following values for a lump sum assuming annual compounding: 2. The future value of 5500 invested at 8 percent for one-year
b. The future value of $500 invested at 8 percent for five years When the c. The present value of $500 to be received in one Year opportunity cost rate is 8 percent d. The present value of 5500 to be received in five years when the opportunity cost rate is 8 percent 9.2 Repeat Problem 9.1, but assume the following compounding conditions: a. Semiannual
b. Quarterly 9.3 What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs semiannually? Quarterly? 9.4 Find the following values assuming a regular, or ordinary, annuity:
a. The present value of $400 per year for ten years at 10 percent
b. The future value of $400 per year for ten years at 10 percent
c. The present value of $200 per year for five years at 5 percent
d. The future value of $200 per year for five years at 5 percent 9.5 Repeat Problem 9.4, but assume the annuities are annuities due. 9.6 Consider the following uneven cash flow stream: Get Accounting homework help today