The annually compounded discount rate is 6.5%. You are asked to calculate the present value of a 13-year annuity with payments of $50,400 per year. a. Calculate the PV if the annuity payments arrive at one-year intervals. The first payment arrives one year from now. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Calculate the PV if the first payment arrives in six months. Following payments arrive at one-year intervals (i.e., at 18 months, 30 months, etc.). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Present value b. Present value

The annually compounded discount rate is 6.5%. You are asked to calculate the present value of a 13-year annuity with payments of $50,400 per year. a. Calculate the PV if the annuity payments arrive at one-year intervals. The first payment arrives one year from now. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Calculate the PV if the first payment arrives in six months. Following payments arrive at one-year intervals (i.e., at 18 months, 30 months, etc.). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Present value b. Present value

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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