If a 5-year ordinary annuity has a present value of $1,000, and if the interest
ID: 2613293 • Letter: I
Question
If a 5-year ordinary annuity has a present value of $1,000, and if the interest rate is 10 percent, what is the amount of each annuity payment? $240.42 $263.80 $300.20 $315.38 $346.87 you just put $1,000 in a book account that pays 6 percent nominal annual interest, compounded monthly. How much will you have in your account after 3 years? $1,006.00 $1,056.45 $1,180.32 $1,191.00 $1,196.68 If $100 is placed in an account that earns a normal 4 percent, compounded quarterly, what will it be worth in 5 years? $122.02 $105.10 $135.41 $120.90 $117.98Explanation / Answer
Answer 32 (b) 263.80
Answer 33 (e) 1196.68
Answer 34 (a) 122.02
n 5years Present Value 1000 Interest rate 10% Annuity=Present Value/((1-((1+i)^(-n))/i) Annuiy=1000/((1-((1+10%)^(-5))/10%) Annuity=263.80