What is the present value of annuity

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1. What is the present value of an annuity of $814 to be received at the end of each of the next 8 years if the discount rate is 4.09%? Round to the nearest dollar. Please show work.

2. Determine the amount you would be wiling to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate of return. please the answer must be in Excel.

3. You have a savings account that pays 3.7% interest compounded quarterly. What is the effective rate of interest? Round to the nearest 0.01% (e.g., if your answer is 4.832%, record it as 4.83). Please show work.

Reference no: EM131835796

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