Determine the present value of an annuity due per year

Assignment Help Financial Econometrics
Reference no: EM13329236

Determine the present value of an annuity due of $1,000 per year at 10 years discounted back to the present at an annual rate of 10 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 15 percent? If the annual discount rate is 10 percent, the present value of the annuity due is $ ?

Reference no: EM13329236

Questions Cloud

Can you name any industries where the government sets price : If the government steps in to regulate a market, setting a price floor above the free market equilibrium price, will demand increase or decrease compared to the free marker equilibrium? Can you name any industries where the government sets price floo..
Determine what is the present value of all future payments : Kelly Greene has a contract in which she will receive the following payments for the next five years: $4,000, $5,000, $6,000, $7,000 and $8,000. She will then receive an annuity of $10,000 a year from the end of the 6th through the end of the 15th..
What is ha is a weak monoprotic acid : If 67.0 mL of 0.119 mol/L NaOH(aq) and 35.0 mL of 0.193 mol/L HA(aq) are mixed, then what is [HA] at equilibrium? Assume that HA is a weak monoprotic acid with pKa=6.23 at 25oC
Trial balance of watteau : Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750 and the purchase of a computer printer on account for $500 was recorded as a debit to Suppl..
Determine the present value of an annuity due per year : Determine the present value of an annuity due of $1,000 per year at 10 years discounted back to the present at an annual rate of 10 percent. What would be the present value of this annuity due
Define hi(aq) required to reach the equivalence point : The volume of HI(aq) required to reach the equivalence point : (1c) The pH at the half-neutralization point. (1d)The pH at the equivalence point.
Determine what is the present value of all future benefits : Rusty Steele will receive the following payments at the end of the next three years: $12,000, $15,000, and $17,000. Then from the end of the fourth year through the end of the tenth year, he will receive an annuity of $18,000.
Percentages for vallejo companys sales : Did Vallejo's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.
Explain isoelectronic series in order of decreasing radius : Arrange the following isoelectronic series in order of decreasing radius, from largest to smallest Cl- p^3- Ca^2+ K+ S^2-

Reviews

Write a Review

Financial Econometrics Questions & Answers

  What will the monthly payment be of new sports car

You want to buy a new sports car from Muscle Motors for $86,000. The contract is in the form of a 72-month annuity due at a 7.65 percent APR. What will your monthly payment be

  What annual rate of interest must earn on the investment

Assume the total cost of a college education will be $250,000 when your child enters college in 17 years. You presently have $69,000 to invest.

  Determine what was the annual increase in selling price

Assume that in January 2010, the average house price in a particular area was $278,400. In January 2000, the average price was $195,300.

  What is amount of the margin call for maintenance margin

You own 300 shares of stock which dropped drastically in value today down to $13.50 a share. You have a margin loan of $2,880. What is the amount of your margin call if the maintenance margin is 40 percent

  Determine what is capitals after-tax wacc

If the returns required by investors are 10 percent, 13 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC. Assume that the firm's marginal tax rate is 40 percent.

  How much can sister spend in each year after sister retires

Your sister turned 35 today, and she is planning to save $5,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that will provide a return of 8% per year.

  How much in local currencies do the supplies receive

An American business pays $10,000, $15,000, and $20,000 to suppliers in Japan, Switzerland, and Cananda, respectively. How much, in local currencies, do the supplies receive

  Capm and capital structure

Reflect on the papers. Synthesize the key points they're making and consider the challenges of such points in a given context within your environment.

  What is the projects total nominal cash flow from assets

Lexus. is considering an investment of $383,000 in an asset with an economiclife of 5 years. The firm estimates that the nominalannual cash revenuesand expenses at the end of the first year will be $263,000 and $88,000

  How to compute the required rate of return

Russo's Gas Distributor, Inc. wants to determine the required return on a stock with a beta coefficient of 0.5. Assuming the risk free rate of 6 percent and the market return of 12 percent.

  How much will investment be worth in 20 years at king bank

You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent per month), while King Bank offers 15 percent but will only compound annually.

  Determine what is the couples marriage penalty or benefit

In 2013, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $125,000 and Fred would have reported taxable income of $175,000.

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