A 20-year annuity pays $1,450 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 percent compounded monthly thereafter, what is the present value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
Answers: 2
![\large\boxed{PV=C[\frac{1}{r}-\frac{1}{r(1+r)^t}]}](/tpl/images/0518/8694/705ee.png)
![PV=C[\frac{1}{r}-\frac{1}{r(1+r)^t}]\\\\PV=\$ 1,450[\frac{1}{(0.11/12)}-\frac{1}{((0.11/12)(1+0.11/12)^{120}}]](/tpl/images/0518/8694/dbabd.png)
![PV=C[\frac{1}{r}-\frac{1}{r(1+r)^t}]\\\\PV=\$ 1,450[\frac{1}{(0.07/12)}-\frac{1}{((0.07/12)(1+0.07/12)^{240}}]](/tpl/images/0518/8694/9c2a9.png)
![PV=C[\frac{1}{r}-\frac{1}{r(1+r)^t}]\\\\PV=\$ 1,450[\frac{1}{(0.07/12)}-\frac{1}{((0.07/12)(1+0.07/12)^{120}}]](/tpl/images/0518/8694/c1458.png)
Another question on Business
Business, 22.06.2019 16:00
In macroeconomics, to study the aggregate means to study blank
Answers: 1
Business, 22.06.2019 20:00
Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation
Answers: 2
Business, 22.06.2019 21:10
Upon completion of the northwest-corner rule, which source-destination cell is guaranteed to be occupied? a. top-leftb. the cell with the lowest shipping costc. bottom-leftd. top-righte. bottom-right
Answers: 1
Business, 22.06.2019 22:00
Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)
Answers: 3
You know the right answer?
A 20-year annuity pays $1,450 per month, and payments are made at the end of each month. If the inte...
Questions
History, 06.10.2020 15:01
History, 06.10.2020 15:01
Chemistry, 06.10.2020 15:01
Mathematics, 06.10.2020 15:01
Advanced Placement (AP), 06.10.2020 15:01
Mathematics, 06.10.2020 15:01
Mathematics, 06.10.2020 15:01
Mathematics, 06.10.2020 15:01
History, 06.10.2020 15:01
