Discounted perpetuity due formula or a formula of the sort

Assignment Help Basic Statistics
Reference no: EM131929687

Your favourite aunty has finally agreed to contribute towards funding your retirement. Specifically, she will start with a contribution of $6,000 today (that is, end of year 0) but this amount will then decline at a constant rate of 3% p.a. over the foreseeable future. If the interest rate appropriate for valuing your aunty's contribution is 12% p.a. its present value today is closest to: a) $38,800. b) $44,800. c) $56,000. d) $70,667. 

For this kind of question, what should I do? Is there a discounted perpetuity due formula or a formula of the sort I can use? Since it's for the "forseeable future", I'm assuming it's a perpetuity. Is my assumption wrong?

Reference no: EM131929687

Questions Cloud

Reevaluate the decision tree : Shamrock Oil has some revised information concerning the accuracy of the geological test probabilities. According to this new information.
Which alternative has the lowest total cost : Hiring the work done on a custom basis would cost $12 per acre. Which alternative has the lowest total cost?
What are the many forms of politics : What are the many forms of politics, and how can uderstanding them make me more effective at school, at work, and socially?
How poor businesses are at self-regulation should govt step : How poor businesses are at self-regulation, should the government step in and require businesses by law to behave in certain ways? Why or why not?
Discounted perpetuity due formula or a formula of the sort : For this kind of question, what should I do? Is there a discounted perpetuity due formula or a formula of the sort I can use? Since it's for the "forseeable
Design a combinational logic circuit : design a combinational logic circuit that displays the hexadecimal value of a gray code input according to the specifications - debug and test your design
Earnings volatility or changes in accounting standards : Explain how biases in underlying data, such as those introduced by earnings volatility or changes in accounting standards over time
Create an initial draft of the final risk management plan : Project: Risk Management Plan - For the first part of the assigned project, you must create an initial draft of the final risk management plan
Introducing the new? pizza : Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new? pizza?

Reviews

Write a Review

Basic Statistics Questions & Answers

  What is the probability it will operate for another hours

Suppose the unit has operated successfully for 500 hours. What is the (conditional) probability it will operate for another 500 hours?

  Influential in shaping communication choices

What aspects of your personal worldview are most influential in shaping your communication choices? Give concrete examples.

  Use the report published by the national safety council

1. Assume that 328 people worked at the NJ facility in 2014 (NAICS Code 3359). Assume there were 24 recordable injuries listed on the OSHA 300 log with 3 injuries recorded as lost time injuries.

  Create the probability model for situation

Create the probability model for this situation. Based on the model, is it worth playing? Please write the model and find the expected value.

  Discuss relative merits of using a histogram versus boxplot

A sample histogram indicates that the data are highly skewed to the right. Is this a reliable indication that if all individuals of interest could be measured, the resulting histogram would also be highly skewed?

  The number of planes arriving per day at small private

the number of planes arriving per day at small private airport is a random variable having a poisson distribution with

  A simple random sample of 102 engineering students was

1 a simple random sample of 102 engineering students was taken from a population of 750 engineering majors. it was

  Shelf-space strategy in retailing

In an article "Shelf-Space Strategy in Retailing," published in Proceedings: Southern Marketing Associa- tion, the e?ect of shelf height on the supermarket sales of canned dog food is investigated.

  An experiment with four treatments and five replications

R for my statistics class and need to write the code for this problem: "An experiment with four treatments and five replications of each treatment, which requires 20 experimental units. How many randomizations are possible for this experiment?..

  A interpret the slope in the context of the problem b

a researcher wants to know how consumption spending responds to changes in disposable income.nbsp the researcher

  The inside diameter of a cylinder has specifications 1 -

the inside diameter of a cylinder has specifications 1 - .03 cm. the machining process output follows a normal

  Well-designed sample of at least 30 units

Select a well-designed sample of at least 30 units. (Describe the population to be studied and the sampling frame). Two variables should be measured with a potential for correlation; if you measure more than two variables, you must correlate two at a..

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