Computation of present value of an investment

Assignment Help Finance Basics

Reference no: EM1312421

You are scheduled to receive annual payments of $10,000 for each of the next 25 years. Your discount rate is 8.5%. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

A. $8,699

B. $9,217

C. $9,706

D. $10,000

E. $10,850

Reference no: EM1312421

Questions Cloud

Impact of deflation on forex rates : Assume the US economy experiences deflation. Trace through the impact on the US macroeconomic variables to the effect on the FOREX rates.

Calculating cross price elasticity of demand : The demand function for VCRs has been estimated to be Qv = 123 - 1.7Pt + 46 Pm - 2.1Pv -5M, where Qv is the quantity of VCRs,Pt is the price of a videocassette, pmis the price of a movie, Pv is the price of a VCR, and M is income.

Describing the modern eating habits : Discuss the differences you have noticed between old and new Food Pyramid. Provide your opinion if you believe new Food Pyramid will be successful in modifying the eating habits of Americans or not.

Frequency distribution to create a probability distribution : Use frequency distribution to create a probability distribution, determine the (b) mean,(c) variance.

Computation of present value of an investment : Computation of present value of an investment and present value if you receive these payments at the beginning of each year rather than at the end of each year

Different observational study designs : Complete the following table titled 'Applications of Different Observational Study Designs' indicating for every objective under the pertinent study design if objective is 'suitable' or 'not suitable'.

Describing increase in selling time estate sales : Statewide real estate sales agency, Farm Associates, specializes in selling farm property in state of Nebraska. At.10 significance level, has there been an increase in selling time?

Compute cross price elasticity of demand : A study sponsored by the American Medical Association suggests that the absolute value of the own price elasticity for surgical procedures is smaller than that for the own price elasticity for office visits. Explain why this would be expected

P-value of the corresponding hypothesis test : If p denotes the p -value of the corresponding hypothesis test, which of the following is true?

User Account

All Pages