Determine the interest rate on annuity

Assignment Help Financial Accounting

Reference no: EM13826327

Assume you just retired and you have accumulated $900,000 in your retirement account. You opted to receive annual payment of $60,000 for the next 30 years. Determine the interest rate on this annuity.

Reference no: EM13826327

Questions Cloud

Net present value of project that has initial cash outflow : What is the net present value of a project that has an initial cash outflow of $12,670 and the following cash inflows? The required return is 11.5%.

Financial ratios-investment research or market watch : Vital to any ratio analysis are the steps of gathering financial data and selecting and calculating relevant ratios. This assignment provides you with an opportunity to do just that. Download a company’s balance sheet and income statement from one of..

Role and different types of marketing channels : Role And Different Types Of Marketing Channels

Time value as part of financial planning : Time value As part of your financial planning, you wish to purchase a new car exactly 5 years from today. The car you wish to purchase costs $14,000 today, and your research indicates that its price will increase by 2% to 4% per year over the next 5 ..

Determine the interest rate on annuity : Assume you just retired and you have accumulated $900,000 in your retirement account. You opted to receive annual payment of $60,000 for the next 30 years. Determine the interest rate on this annuity.

Construct a binomial lattice-european call option : We want to price options using the binomial lattice. The current stock price is 54 and the strike price is 50. Assume that the stock up-trend rate is u = 1.2 with probability p = 0.4 and the down-trend rate is d = 0.8 with probability 1 − p = 0.6. Co..

Product life cycle limitations and implications : Product Life Cycle Limitations And Implications

Current rate be on two-year treasury securities : One-year Treasury bills currently earn 3.25 percent. You expect that one year from now, one-year Treasury bill rates will increase to 3.55 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury s..

Blends the characteristics of both debt and equity : A hybrid security is neither debt nor equity but instead derives its value from an nderlying asset. Preferred stock is considered a hybrid security because it blends the characteristics of both debt and equity, A hybrid security is a form of debt or ..

User Account

All Pages