Calculate the annual cash flows from fixed-payment annuity

Assignment Help Financial Management

Reference no: EM132061540

Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 25-year annuity is $1 million and the annuity earns a guaranteed annual return of 12 percent. The payments are to begin at the end of the current year.

What is the amount of the annuity purchase required if you wish to receive a fixed payment of $300,000 for 25 years? Assume that the annuity will earn 12 percent per year.

Reference no: EM132061540

Questions Cloud

What oversight do the given regulatory agencies provide : Identify the main accrediting bodies for health care that govern all health care organizations. What oversight do these regulatory agencies provide?

Determine the return on equity for each alternative : Determine the return on equity for each alternative. Explain which policy is more risky.

What is the net profitability in dollars : The total income generated from their investments was $190,000 after all expenses were paid. What is the net profitability in dollars?

Express interest in a job opening : In regards to affirmative action, how aggressive should a company be if, in the region, there simply are not enough people of an underrepresented group

Calculate the annual cash flows from fixed-payment annuity : Calculate the annual cash flows (annuity payments) from a fixed-payment annuity

Research about the differential treatment and access : What are the specific vulnerable groups that are potentially at risk as a result of the disaster? Why?

Claim the protection of the first amendment : What is a scenario where someone would claim the protection of the First Amendment and hat ethical theory or theories govern this claim to protection

Compute the company budgeted sales for the next week : The expected cost for Product A is 41% of its selling price, Compute the company's budgeted sales for the next (seven-day) week

Enhance the employees morale in the workplace : What activities or exercises can a manager or administrator adopt to enhance the employees' morale in the workplace?

User Account

All Pages