Question 19 ( You are offered two investments as follows. If you have limited budget, which one do you choose? You may round up the final answer to a whole number. Options A B Annual Payment $600 $400 Number of Years 12 Unlimited B You are indifferent between A and B. A O A and B. Annual Interest Rate 10.45% 10%

Question 19 ( You are offered two investments as follows. If you have limited budget, which one do you choose? You may round up the final answer to a whole number. Options A B Annual Payment $600 $400 Number of Years 12 Unlimited B You are indifferent between A and B. A O A and B. Annual Interest Rate 10.45% 10%

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter5: Time Value Of Money

Section: Chapter Questions

Problem 41SP

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QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 6%/30 12.15812 13.76483 .17411 79.05819 $????????? invested annually at the end of the year. Required Computations: $12,648.91 $72,648.92 $33,3333.33 $11,927.43
QUESTION 41 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 6%/30 12.15812 13.76483 .17411 79.05819 One single deposit of $???????? for 30 years. Required Computations: $166,666.66 $174,110 $175,933.83 $126,489
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QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 6%/30 12.15812 $33,3333.33 O $72,648.92 Present Value of ordinary annuity of $1 13.76483 Present value of $1 .17411 $????????? invested annually at the end of the year. Required Computations: O $12,648.91 O $11,927.43 Future Value of ordinary annuity of $1 79.05819
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