5-3 Future Value of an Annuity What is the future value of a $900 annuity payment over five years if interest rates are 8 percent? (LG5-2) 900 x [ (1+.08)^5 -1/.08] 900 x [1.5868/.08] 469.44 = 4224.96 5-5 Present Value Compute the present value of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. (LG5-3) 5-7 Present Value of an Annuity What's the present
value of a $900 annuity payment over five years if interest rates are 8 percent? (LG5-4) 5-11 Present Value of an Annuity Due If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, what's the present value of the same annuity due? (LG5- 5-15 Effective Annual Rate A loan is offered with monthly payments and a 10 percent APR. What's the loan's effective annual rate (EAR)? (LG5-7 5-21 Present Value Given a 6 percent interest rate, compute the present value
of payments made in years 1, 2, 3, and 4 of $1,000, $1,200, $1,200, and $1,500. (LG5-3 5-39 Loan Payments You wish to buy a $25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are the monthly payments? How would the payment differ if you paid interest only? What would the consequences of such a decision be? (LG5-9) Answer & Explanation Solved by verified expert <p>at, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentes</p> Unlock full access to Course Hero Explore over 16 million step-by-step answers from our library Subscribe to view answer  docx What is the future value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) er to 2 decimal places.) Answer & Explanation Solved by verified expert m risus ante, dapibus a e vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, di Unlock full access to Course Hero Explore over 16 million step-by-step answers from our library Subscribe to view answer Step-by-step explanation at, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molesti PNG What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 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If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why? Recommended textbooks for you Corporate Fin Focused Approach ISBN:9781285660516 Author:EHRHARDT Publisher:Cengage Financial Management: Theory & Practice ISBN:9781337909730 Author:Brigham Publisher:Cengage EBK CONTEMPORARY FINANCIAL MANAGEMENT ISBN:9781337514835 Author:MOYER Publisher:CENGAGE LEARNING - CONSIGNMENT Financial Accounting ISBN:9781337272124 Author:Carl Warren, James M. 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Joehnk Publisher:Cengage Learning What's the present value of a $800 annuity payment over six years if interest rates are 10 percent?Present value of the annuity is $3,933.86.
What is the future value of a $1000 annuity payment over five years if interest rates are 9 %?The future value of the annuity is $5,984.71.
Which of the following will increase the present value of an annuity?The present value of an annuity will increase by decreasing the discount rate.
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What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?
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