Computation of present value of the annuity

Assignment Help Finance Basics

Reference no: EM1314217

a. What is the present value of a 3-year annuity of $100 if the discount rate is 6%?

b. What is the present value of the annuity in (a) if you have to wait 2 years instead of 1 year for the first payment?

Reference no: EM1314217

Questions Cloud

Find the company''s warranty expense : Find the company's warranty expense for the month of November and Merchandise - Warranty Expenses

Prepare a schedule showing amounts -buildings and machinery : Land, Buildings, and Machinery - Prepare a schedule showing the amounts to be recorded as Land, Buildings, and Machinery.

Decision making on the basis of expected return : Decision making on the basis of expected return and volatility of project and Suppose you have two good projects in which you could invest

Decision making among buy and lease : Decision making among buy and lease and Your landscaping company can lease a truck for $8000 a year (paid at year end) for 6 years

Computation of present value of the annuity : Computation of present value of the annuity and if you have to wait 2 years instead of 1 year for the first payment

Graphing the quadratic equations : Graphing the quadratic equations.

Computation of annual interest rate based on given cash flow : Computation of annual interest rate based on given cash flows and find the annual interest rate

Computation of earnings as interest on interest : Computation of earnings as interest on interest and How much will you accumulate in your account after 10 years

Calculation of future value of cash flows at various rates : Calculation of future value of cash flows at various rates and lives using following combinations of rates and times

User Account

All Pages