Payments come at the beginning of each period

Assignment Help Financial Management

Reference no: EM131856668

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). What is the future value of a 15-year annuity of $1,600 per period where payments come at the beginning of each period? The interest rate is 9 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value. For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n = 6 and i = 10 percent.

Reference no: EM131856668

Questions Cloud

Calculate the annual depreciation each year for tax purposes : Calculate the annual depreciation each year for tax purposes over the five years, using a depreciation rate of 10% p.a., prime cost basis.

Possible values of the random variable x : If it? is, identify a? success, specify the values of? n, p, and? q, and list the possible values of the random variable x.

Compute the elasticities for each independent variable : Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies.

Payments come at the beginning of each period : What is the future value of a 15-year annuity of $1,600 per period where payments come at the beginning of each period?

Summarize the main points for american entry : Write a well-developed journal paragraph in which you summarize the main points and reasons for American entry, especially the significance of sinking of the M

What is the population of interest : a. What is the population of interest? Race of residents in State X b. What is the variable of interest? The race of residents in 4 counties

Why do you accept reasons for us involvement in conflict : How are the reasons similar? How are they different? Do you accept their reasons for US involvement in conflict overseas? Why or why not?

Confident of estimating the population mean : If you want to be 95?% confident of estimating the population mean to within a sampling error of ± 33 and the standard deviation is assumed

User Account

All Pages