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ID: 2620193 • Letter: E
Question
easte Remaining Time: 11 minutes, 30 seconds. v Question Completion Status: QUESTION 7 if you take a 30 year $200,000 mortgage and interest rate is 6% compounded monthly, what is your monthly payment? 1199.10 QUESTION 8 What is the present value of a 10-year annuity due with annual payments of $100, evaluated at a 10 percent interest rate QUESTION9 The nominal rate of Bank A is 8% and interests are compounded monthly, what is its effective rate? The effective rate of Bank B is 9.31% and interests are compounded four times a year, what is its nominal rate? 9.002 QUESTION 10 Suppose the present value of a 2 year ordinary annuity is $100. if the discount rate is 10 percent, what must be the annual cash flow? Click Save and Submit to sove and submit. CNck Save Al Answers to sove ail answers FS F6 17Explanation / Answer
QUESTION - 8
Present value of Annuity Due
= Annual Payments x Present Value of an Annuity Due Factor of $1
= $100 x [(PVIFA 10%, 9 Periods) + 1]
= $100 x [5.759024 + 1]
= $100 x 6.759024
= $675.90
Hence, The Answer is “$675.90”
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