Reference no: EM131111427
Marian Kirk wishes to select the better of two 10-year annuities, C and D. Annuity C is an ordinary annuity of $2,500 per year for 10 years. Annuity D is an annuity due of $2,200 per year for 10 years.
a. Find the future value of both annuities at the end of year 10, assuming that Marian can earn
(1) 10% annual interest and
(2) 20% annual interest.
b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 10 for both the
(1) 10% and
(2) 20% interest rates.
c. Find the present value of both annuities, assuming that Marian can earn
(1) 10% annual interest and
(2) 20% annual interest.
d. Use your findings in part c to indicate which annuity has the greater present value for both
(1) 10% and
(2) 20% interest rates.
e. Briefly compare, contrast, and explain any differences between your findings using the 10% and 20% interest rates in parts b and d.
|
What is the most you would pay for this annuity
: An insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today will provide you with $12,000 at the end of each year for the next 25 years. You currently earn 9% on low-risk investments comparable to th..
|
|
Difference between a column constraint
: What is the difference between a column constraint and a table constraint and briefly discuss what "referential" constraints actions are. Provide at least one example. Please be detailed. No one sentence answer please.
|
|
Describe the main line of business of the company
: Explain in detail the implementation of the 4 Psmarketing mix concept by the company, including the following: Competition, Target market, Product strategy, Distribution strategy and Communication strategy.
|
|
Discuss the effect of beginning of year deposits
: Rework parts a, b, and c, assuming that Hal makes all deposits at the beginning, rather than the end, of each year. Discuss the effect of beginning-of-year deposits on the future value accumulated by the end of Hal's sixty-fifth year.
|
|
Briefly compare, contrast, and explain any differences
: Briefly compare, contrast, and explain any differences between your findings using the 10% and 20% interest rates in parts b and d.
|
|
Cost behavior in order to make more accurate predictions
: Managers are interested in modeling past cost behavior in order to make more accurate predictions of future costs. Models of past cost behavior are called cost functions. Factors that influence costs are called cost drivers (Horngren, Foster, and ..
|
|
How historians select and interpret evidence
: To help with this assignment, you may find it useful to think about: how historians select and interpret evidence; how one's world view, or point of view, affects the interpretation of evidence.
|
|
A compensation plan designed to eliminate pay inequities
: To develop a compensation plan designed to eliminate pay inequities, a sample of benchmark jobs are evaluated and assigned points, x, based on factors such a\ responsibility, skill, effort, and working conditions.
|
|
Create a new host within the ftp client that you are using
: You have created the basic homepage for the Canterbury University, and uploaded it to your server. Remember that websites are a construction of content and process. The information is content, and the design, storyboard, coding, and uploading is ..
|