Annuity payment over four years if interest rates

Assignment Help Financial Management
Reference no: EM131020222

What's the present value of a $870 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM131020222

Questions Cloud

Trying to save time on my exam by learning how : Future Value At age 25 you invest $1,800 that earns 9 percent each year. At age 30 you invest $1,800 that earns 12 percent per year. In which case would you have more money at age 60? Trying to save time on my exam by learning how
Compounding with different interest rates : Compounding with Different Interest Rates A deposit of $390 earns interest rates of 7.9 percent in the first year and 10.9 percent in the second year. What would be the second year future value?
What should they expect to receive for in secondary market : Bond Valuation-In 2013, Carnival Cruise Lines decided to sell some new bonds (something about fixing a big ship). They sold the bonds for $1,000 (face value) with a 20 year maturity and an 8% coupon. Two years have passed. Interest rates on similar b..
Present value of an annuity : Present Value of an Annuity What is the present value of a $2,100 annuity payment over 7 years if interest rates are 11 percent?
Annuity payment over four years if interest rates : What's the present value of a $870 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Future value of multiple annuities-value of retirement plan : Future Value of Multiple Annuities Assume that you contribute $270 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $370 per month for another 20 years. Given a 9.5 percent interest rate, what is the valu..
Which deal is cheaper : A car company is offering a choice of deals. You can receive $2,000 cash back on the purchase or a 2.6 percent APR, 3-year loan. The price of the car is $22,000 and you could obtain a 3-year loan from your credit union, at 6.6 percent APR. Which deal..
What would be the pr ice of the bond if the yield : Expert Security Inc. has 9 percent coupon bonds on the market with five (5 ) years left until maturity. These bonds make annual payments. If the yield to maturity on t he bond is 8 percent, what is the current price of the bond? What would be the pr ..
What is the current price of the bond : American Airlines Corp. has bonds on the market with 10 years to ma turity, a yield to maturity of 9 percent and a coupon rate of 9 percent. If these bonds make quarterly coupon payments, what is the current price of the bond?

Reviews

Write a Review

Financial Management Questions & Answers

  Using the capital asset pricing model

An analyst believes that a stock for a large company has a beta of 1.4. The 10 year government bond rate is 4%, and the analyst expects the return on the S&P500 to be 12%. Using the capital asset pricing model, the analyst would estimate the required..

  How much would he have to invest today

Greg Lawrence anticipates he will need approximately $227,300 in 14 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today, at an interest rate of 10 percent compounded semi annually?

  Stock commands a market rate of return

Ross Ice Gardens stock commands a market rate of return of 12.5% per year, pays dividends that are expected to increase by 3% per year, and currently sells for $32 a share. Based on this information, what is the expected amount per share of the next ..

  What is the dollar amount of income

London purchased a piece of real estate last year for $85,900. The real estate is now worth $102,000. If London needs to have a total return of 0.23 during the year, then what is the dollar amount of income that she needed to have to reach her object..

  Calculate the bonds effective duration

Calculate the bond's price if the market rate increases by 50 basis points (0.25 percent semiannually) using the present value formula from Chapter 6. Calculate the bond's effective duration assuming a 50 basis point increase or decrease in market ra..

  Global financing and exchange rate topics

Explain how your topic is used in global financing operations and describe its importance in managing risks.

  Mitigated foreign exchange risk through methods

Access the NAU Online Library and research on ProQuest a firm that mitigated foreign exchange risk through methods such as currency swaps, currency futures, forward transactions, etc. What method was used and what was the result? If the firm has used..

  Determine the maximum amount fabco

Using a PW approach determine the maximum amount Fabco should be willing to pay for the valves and how many days/year must the truck's services be needed such that the two alternatives are equally costly?

  What is the market value of the firms equity and debt

Sunburn Sunscreen has a zero coupon bond issue outstanding with a $21,000 face value that matures in one year. The current market value of the firm's assets is $21,000. The standard deviation of the return on the firm's assets is 34 percent per year,..

  What is the amount of funds crew receives

An investment banker agrees to a best efforts offering of 2.5 million of shares of Crew stock. The offer price is set at $35 per share. If the stock is actually sold to the public at $34.50 and the banker charges a 3.45 cent commission per share sold..

  Repaid in equal annual installments

If the center takes out a 5-year term loan that would be repaid in equal annual installments, how much will it owe to Bank South if Gary decides to pay off the loan early at the end of third year. Amount borrowed 250, 0000 and rate 8.06

  Interest on debt is tax deductible and dividend on stock

Since interest on debt is tax deductible and dividend on stock is not. Companies are financially better off issuing as much debt as possible. The optimal capital structure is the same for all the companies in the each industry.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd