Calculate the present value of the following annuity streams: a. $5,000 received each year for 6 years...

60.1K

Verified Solution

Question

Finance

Calculate the present value of the following annuitystreams:

a. $5,000 received each year for 6 years on thelast day of each year if your investments pay 7 percent compoundedannually.
b. $5,000 received each quarter for 6 years on thelast day of each quarter if your investments pay 7 percentcompounded quarterly.
c. $5,000 received each year for 6 years on thefirst day of each year if your investments pay 7 percent compoundedannually.
d. $5,000 received each quarter for 6 years on thefirst day of each quarter if your investments pay 7 percentcompounded quarterly.

(For all requirements, do not round intermediatecalculations. Round your answers to 2 decimal places. (e.g.,32.16))

Answer & Explanation Solved by verified expert

3.9 Ratings (664 Votes)

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

Calculate the present value of the following annuitystreams:a. $5,000 received each year for 6 years on thelast day of each year if your investments pay 7 percent compoundedannually.b. $5,000 received each quarter for 6 years on thelast day of each quarter if your investments pay 7 percentcompounded quarterly.c. $5,000 received each year for 6 years on thefirst day of each year if your investments pay 7 percent compoundedannually.d. $5,000 received each quarter for 6 years on thefirst day of each quarter if your investments pay 7 percentcompounded quarterly. (For all requirements, do not round intermediatecalculations. Round your answers to 2 decimal places. (e.g.,32.16))