Arrange View Window Help 8. Your friend promises you an annuity of $1 every year
ID: 2616138 • Letter: A
Question
Arrange View Window Help 8. Your friend promises you an annuity of $1 every year for 10 years. The first payment occurs next year, which of the following is right about its present value at time zero ifr-10967 a. b. $6.14 $6.76 c. $5.59 d. No enough information e. None of the above 9. Your friend promises you an annuity of $1 every year for 10 years. The first payment occurs at year 2, which of the following is right about its present value at year one if r-10%? a. b. $6.14 $6.76 c. S5.59 d. No enough information e. None of the above 10. Which of the following is right about the mortgage type payment? a. The total payments at different time periods are different b. The total payment in each period consists of interest payment and principal payment c. The total payment in each period is calculated by dividing the total borrowed money by the number of years of borrowing d. The total payment in each period is the difference between the principal payment and interest None of the above payment e. untExplanation / Answer
8) The present value of the annuity at time 0 would be 6.14
6.14
9) The present value of the annuity at time 0 would be 6.14
6.14
10) In case of mortgage type of payment, the total payment in each period consists of interest and principal
Years Cash flow Discounting factor @ 10% Present value 1 1 0.91 0.91 2 1 0.83 0.83 3 1 0.75 0.75 4 1 0.68 0.68 5 1 0.62 0.62 6 1 0.56 0.56 7 1 0.51 0.51 8 1 0.47 0.47 9 1 0.42 0.42 10 1 0.39 0.396.14
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.