Solution-Find the future values of fv of $400 and annuities

Find the future values of fv of $400 and annuities described

Reference no: EM131100515

Find the future values of the following ordinary annuities:
a. FV of $400 each 6 months for 5 years at a nominal rate of 12 percent, compounded semiannually.
b. FV of $200 each 3 months for 5 years at a nominal rate of 12 percent, compounded quarterly.
c. The annuities described in parts a and b have the same amount of money paid into them during the 5-year period and both earn interest at the same nominal rate, yet the annuity in part b earns $101.60 more than the one in part a over the 5 years. Why does this occur?

Reference no: EM131100515

Questions Cloud

Kind hand from a standard : 1. Find the number of different ways to draw a 4-of-a-kind hand from a standard 52 card deck, i.e. X X X X Y where the X's are four cards of the same rank (A to 2) and Y differs from X in rank. (Note: there are 4 suits per rank.) Let's think this ..

What are the units of the coefficients of friction : Suppose a block of mass 2.5.0 kg rests on a horizontal plane. and the coefficient of static friction wren the surfaces is 0.220. What is the maximum static frictional force that could act on the block? Show your work.

Which bank would you prefer to deposit your money : Universal Bank pays 7 percent interest, compounded annually, on time deposits. Regional Bank pays 6 percent interest, compounded quarterly. a. Based on effective interest rates, in which bank would you prefer to deposit your money?

Reflect on your motivation to complete your degree : Reflect on your motivation to complete your degree. Identify which model of motivation aligns with your reasons - review the web article "A Theory of Human Motivation." Focus on the different factors that increase motivation.

Find the future values of fv of $400 and annuities described : Find the future values of the following ordinary annuities: a. FV of $400 each 6 months for 5 years at a nominal rate of 12 percent, compounded semiannually. b. FV of $200 each 3 months for 5 years at a nominal rate of 12 percent, compounded quarterl..

Draw a gate diagram implementing the sop using nand gates : For the function F(w, x, y, z) = Σ(0, 1, 4, 5, 7, 10, 11, 13, 14, 15), Simplify the function using a K-map to form a sum of products. Draw a gate diagram implementing the SOP using NAND gates

Equation that represents relation and solve : The amount of money they spend on the first day plus the amount of money they spend on the second day equals 2.3 times the amount they spent on the third day. Write an equation that represents this relation, and solve.

Two plants producing forklift trucks : The Move-It Company has two plants producing forklift trucks that then are shipped to three distribution centers. The production costs are the same at the two plants, and the cost of shipping for each truck is shown for each combination of plant ..

Disadvantaged or underprivileged groups of society : How social research should be used to aid the disadvantaged or underprivileged groups of society - project Camelot is an example of how social research can be used to suppress the already disadvantaged.

User Account

All Pages

Find the future values of fv of $400 and annuities described

Reference no: EM131100515

Reference no: EM131100515

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT