Calculate the present value of annuity

Assignment Help Financial Management
Reference no: EM132071558

Calculate the present value of an annuity of $5,000 received annually that begins today and continues for 10 years, assuming a discount rate of 9%.

For example:

What is the monthly payment for a 30 year mortgage of $100,000 at 6% annual rate?

Recommended answer should be like this:

n = 360, i = 0.5, PV = 100,000, FV = 0

therefore PMT = 599.55

Offering $599.55 as your final answer is NOT enough; please show the input for your answers.

Reference no: EM132071558

Questions Cloud

Discuss on moral development and ethical reasoning : How has your morality (if it has) progressed from your adolescence?How would you have answered Heinz's dilemma?
Describe the types of information that would be collected : Describe the types of information that would be collected during an organizational analysis, an operational analysis, and a person analysis.
Federally designed standards for emergency management : Political scientists use a term called "coercive federalism" to describe how the federal government uses federal funds to entice states unilaterally
Marketing project-distribution channels and pricing paper : Prepare a 3 - 4 page double-spaced paper that evaluates and recommends distribution channels, pricing, and competitive differentiation.
Calculate the present value of annuity : Calculate the present value of an annuity of $5,000 received annually that begins today and continues for 10 years, assuming a discount rate of 9%.
Calculate the number of books katie needs : Assume that Katie wants to earn a profit of $4,000. Calculate the number of books Katie needs to sell to earn a desired profit of $4,000
One weakness of the regular payback method : One weakness of the regular payback method is that it ignores what happens after the initial cost is recovered.
Potential middle-range theory : A brief summary of the problem including the potential middle-range theory that could be applied.
Why this issue needs recognition or increased awareness : Explain your vision of future directions for community health education theory and intervention development in the field of public health.

Reviews

Write a Review

Financial Management Questions & Answers

  Tools and techniques for developing competitive intelligence

Explain the tools and techniques for developing competitive intelligence. Make appropriate recommendations to Glorious Beans’ management.

  Revenue is collected in the same month

Your hospital has the following revenue for the months of July-September: July $3,000,000 August $2,500,000 September $4,000,000. If 30% of the month's revenue is collected in the same month, 40% is collected in the second month and 30% is collected ..

  Maintain a weighted average cost of capital

Webster's Watering Hole must maintain a weighted average cost of capital of 9% to satisfy covenants in the bond indenture. Analysts forecast the after tax cost of debt of 5% and a cost of equity of 11%. What debt-equity ratio must be employed to meet..

  Cash balance fall below zero-signaling need to borrow money

In what month does the cash balance fall below zero, signaling a need to borrow money?

  Determine optimal ordering quantity-annual inventory cost

A company makes apple butter to supply local vendors. The manufacturing company can make 330 pounds of apple butter per day and demand from vendors in 190 pounds per day. Each time the manufacturing company makes apple butter, it costs $176 to set up..

  Understand frm and arm-apply for home mortgage

Now that you understand FRM and ARM, if you had to apply for a home mortgage, which of the two options will you apply for? Why?

  What is risk and risk taking in finance

What is Risk and Risk Taking in Finance? Explain in needed details.

  Investor is interested in buying european call option

An investor is interested in buying a European call option written on Apple, a non-dividend paying common stock, with a strike price of $52 and one year until expiration. Currently, Apple’s stock sells for $50 per share. In one year, the investor kno..

  Portfolio dollar return and percentage return

What is your portfolio dollar return and percentage return?

  Calculate net present value of this project

Calculate the net present value of this project to the company and determine whether the project is acceptable.

  Regular dividend payment to shareholders

Nolan would be to begin a regular dividend payment to shareholders.

  What nominal rate would the bank quote for this loan

To start a new business Sue Mei intends to borrow $25,000 from a bank. With annual compounding, what nominal rate would the bank quote for this loan?

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