Reference no: EM131806232
These three seperate, trying to confirm my calculations. Can you provide Excel calculations and answers.
A promissory note entitling her to receive a lump sum of $100,000 5 years from today. Similar notes today yield 5% per year.
A 10 year CD paying 8% interest per year that she opened exactly 10 years ago with a $35,000 deposit.
An insurance settlement that will pay her $1,200 per month for the next 40 months. A finance company, GJ Worthless, is willing to buy this settlement from her today as long it can obtain a yield of 0.85% per month on its investment.
A retirement account that has always paid an APR of 6% per year (0.5% per month) compounded monthly, into which she has deposited $310 at the end of every month for the last 10 years.
50 shares of a stock that will pay a $25 quarterly dividend (per share) three months from today and is expected to continue paying the same $25 per quarter forever. Similar investments today are priced to yield 1.25% per quarter.
250 shares of a stock that will pay a $15 annual dividend (per share) a year from today and has increased its dividend payout by 2% every single year. This sock is expected to continue increasing its dividend payout at the same rate forever. Similar investments today are priced to yield 5% per year.