6. (5 points) The following cash flows have a present value of 0. Compute the value of n, assuming an 8% interest rate. $A = 2500$ $n = ?$ $F = \$60,537.30$
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The cash flows are an annuity with a payment of $A = 2500$ for $n$ periods. The future value is $F = \$60,537.30$. The interest rate is $i = 8\% = 0.08$. Show more…
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Note: Round to the nearest cent when necessary. Use Table 12-1 to calculate the future value of the following ordinary annuities. $$ \begin{array}{cccccc} \begin{array}{c} \text { Annuity } \\ \text { Payment } \end{array} & \begin{array}{c} \text { Payment } \\ \text { Frequency } \end{array} & \begin{array}{c} \text { Time } \\ \text { Period (years) } \end{array} & \begin{array}{l} \text { Nominal } \\ \text { Rate (\%) } \end{array} & \begin{array}{c} \text { Interest } \\ \text { Compounded } \end{array} & \begin{array}{c} \text { Future Value } \\ \text { of the Annuity } \end{array} \\ \hline \$ 2,500 & \text { every } 6 \text { months } & 5 & 10 &\_\_\_\_\_\_\_\_& \_\_\_\_\_\_\_\_ \end{array} $$
Annuities
Calculating the future value of an ordinary annuity by using tables
Find the future value at 5.5% interest, compounded continuously for 6 years, of the continuous income stream with rate of flow f(t) = 1500 What is the future value of the investment? (Round to the nearest dollar as needed )
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Sheryl E.
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