Answer:
Instructions are listed below
Explanation:
Giving the following information:
An investment offers $6,600 per year for 10 years, with the first payment occurring one year from now. The required return is 5 percent.
A) FV= {A*[(1+i)^n-1]}/i
FV= {6600*[(1.05^10)-1]}/0.05= $83,014.09
PV= FV/(1+i)^n= 83,014.09/1.05^10= $50,063.39
B) n=35
FV= {6600*[(1.05^35)-1]}/0.05= $596,114.03
PV= 596,114.03/1.05^35= $108,069.69
C) n=65
FV= {6600*[(1.05^65)-1]}/0.05= $3,014,866.87
PV= 3,014,866.87/ 1.05^65= $126,463.06
D) PV= 6600/0.05= $132,000
