1 a) The present value of an annuity lasting 72 interest periods and paying $ 2,000 at...

80.2K

Verified Solution

Question

Finance

1 a) The present value of an annuity lasting 72 interestperiods
and paying $ 2,000 at the beginning of each “k” interest periodsis
$ 9,538.60. Given that the effective interest rate per interestperiod
is 3.6575%, find k.
1 b) Find an expression in terms of i⁽⁴⁾ for theaccumulated value at the
end of the twenty-one years of an annuity that pays $ 400 atthe
beginning of each four-month period for 21 years. Your
expression should NOT be a sum of terms. Your answer should bea
nice formula.
1 c) Jason purchases a deferred perpetuity for $ 27,040. The
perpetuity has quarterly payments of $ 1,500. Express thewaiting
time until the first payment as a function of the annualeffective
interest rate i.

Answer & Explanation Solved by verified expert

4.3 Ratings (615 Votes)

You have asked multiple unrelated questions in the same post Ihave addressed the first one Please post the balance See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

1 a) The present value of an annuity lasting 72 interestperiodsand paying $ 2,000 at the beginning of each “k” interest periodsis$ 9,538.60. Given that the effective interest rate per interestperiodis 3.6575%, find k.1 b) Find an expression in terms of i(4) for theaccumulated value at theend of the twenty-one years of an annuity that pays $ 400 atthebeginning of each four-month period for 21 years. Yourexpression should NOT be a sum of terms. Your answer should beanice formula.1 c) Jason purchases a deferred perpetuity for $ 27,040. Theperpetuity has quarterly payments of $ 1,500. Express thewaitingtime until the first payment as a function of the annualeffectiveinterest rate i.