Annuity payments to be received semi-annually

Assignment Help Finance Basics
Reference no: EM132154667

Solve each item below.

  1. What is the PV of $800 annuity payments to be received semi-annually, at a discount rate of 8% for 9 years?
  2. What is the FV of $2,400 annual payments at 4% for 8 years?
  3. What is the PV of $42,000 when the discount rate is 8%, compounded quarterly, for 3 years?
  4. What is the FV of $8000 invested at 4%, compounded semi-annually, for 7 years?
  5. How much would you pay now in order to receive payments of $450 every six months, where the rate is 8%, for the next 9 years?

Reference no: EM132154667

Questions Cloud

What would be the twos complement representation : What is the range, in decimal, of signed integers that can be represented? For full credit, explain your answer.
Compute the payback period in years : The total cash inflow is expected to be $22,000 or an average of $4,400 per year. Compute the payback period in years.
Pros and cons of buying a new or used car : What are the pros and cons of buying a new or used car. explain in detail using your own words
What would you need to do to run it every night as root : Suppose you wanted to delete the trash of all users every night using the just created /root/deleteTrash.bash script.
Annuity payments to be received semi-annually : What is the PV of $800 annuity payments to be received semi-annually, at a discount rate of 8% for 9 years?
Discuss a company in the news today : Use concepts such as interest rates, the Fed trade issues that we discussed in the course.
Create a small business network for an independent retail : Create a small business network for an independent retail store or restaurant. They are looking for a company to give them a cost for equipment.
What is the firm expected cost of retained equity : The current Stock price is P0 = $30.00; the current dividend just paid is $2.50 (D0 = $2.50); and the dividend is expected to grow at a constant rate of 8%.
What is the wacc based on the market value : What is the WACC based on the market value weights of debt and equity?

Reviews

Write a Review

Finance Basics Questions & Answers

  Organization initiative impact costs

Dell a leading computer technology organization has established a high ethical standard of doing business with customers, vendors, stakeholders, suppliers and shareholders.

  Calculate the net coupon exchange for the first period if

you are given the following information about an interest rate swap two year term semiannual payment fixed rate 6

  What is the effective annual interest rate

What is the effective annual interest rate? Stu Dente wants to open a savings account and make a one deposit now that will enable him to withdraw

  Why did mercks price fall so significantly

Why did Merck's price fall so significantly? Try to incorporate concepts from session 4 and current session. What is the expected return on Elsenore?

  An investment promises you a single cash flow of 40000 25

question 1 suppose you deposit 18000 into an account today that earns 6 interest per year and you do not withdraw the

  What will happen to the ruble versus dollar exchange rate

Purchasing Power Parity. Suppose the rate of inflation in Russia will run about 3 percent higher than the U.S. inflation rate over the next several years.

  Ater the recap dyes stock price is 750 if dye had 60

dye trucking raised 150 million in new debt and used this to buy back stock. after the recap dyes stock price is 7.50.

  What is the expected rate of return for the stock

ABC expects to pay a dividend one year from now of $0.64. The dividend exhibits constant growth of 10.5%, and the current price of the stock is $38.53.

  How many dollars of revenue must the company generate

Kobe's Furniture has a contribution margin ratio of 0.14. If fixed costs are $170,300, how many dollars of revenue must the company generate in order to reach the break-even point?

  Calculate after-tax cost of debt

A firm issues a 10-year debt obligation that bears a 12% coupon rate and gives the investor-Calculate the after-tax cost of debt, assuming the debt remains outstanding until maturity.

  Network service provider verisign

The β = 0.79 for network service provider VeriSign, Inc. (VRSN), and β = 1.34 for video game supplier Electronic Arts Inc. (ERTS). If the market return is expected to be 10% and the risk-free rate is 4%,

  Discuss about the average life expectancy

What are the reasons to believe that average life expectancy in the US will continue to increase, and what are the reasons to believe that it will not?

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