Description of present value of annuity

Assignment Help Finance Basics

Reference no: EM1329792

Using the appropriate PV Table and assuming a 12% annual interest rate, determine the present value on December 31, 2009 of a five period annual annuity of 10000 under each of the following situations:

a. The first payment is received on December 31, 2010, and interest is compounded annually.

b. The first payment is received on December 31, 2009, and interest is compounded annually.

c. The first payment is received on December 31, 2009, and interest is compounded quarterly.

Reference no: EM1329792

Questions Cloud

Relationship between customer service and inventory levels : Relationship between customer service and inventory levels? Impact to costs - What is the relationship between customer service and specific levels of inventory? How does that relationship impact cost?

Scientific research design : Scientific Research Design: No relationship between customer satisfaction and loyalty

Knowledge about corporate finance : A corporation has decided to provide the pension for key employee who is scheduled to retire in 12 years-What should the annual payments be in order to fund this pension?

Costs, growth and management equity : What personal leadership skills are needed in optimizing the relationship between these two result areas while attending to the following three issues: costs, growth and management equity?

Description of present value of annuity : by using the proper PV Table and supposing a 12% annual interest rate, find out the present value on December 31, 2009 of the five period annual annuity of 10000 under each of following situations:

Future value of annuity exercise : Using the appropriate tabels find out how much will be accumulated in the fund on December 31, 2012 under each of the following situations:

Explain metrics for e-business website : Explain Metrics for e-business website and Some examples of metrics could be number of visits each day to the site or look-to-buy rate

Annuities-perpetuity-savings account-bonds : You've decided to purchase perpetuity. The bond makes one payment at the end of every year forever and has interest rate of 5%. If you initially put $1000 into the bond, what is the payment every year?

What you need to know about future value : Mary and Joe would like to save up $10,000 by the end of 3 years from now to buy new furniture for their home. They currently have $1,500.

User Account

All Pages