Earn minimum rate of return

Assignment Help Financial Management
Reference no: EM13919845

The Good Life Insurance Co. wants to sell you an annuity which will pay you $660 per quarter for 30 years. You want to earn a minimum rate of return of 5.1 percent. What is the most you are willing to pay as a lump sum today to buy this annuity? How would you calculate this?

Reference no: EM13919845

Questions Cloud

Describe the hr job positions and the responsibilities : Examine the role of human resource management (HRM) in organizations and how it supports the organization's business strategy.Evaluate human resource strategies and how these strategies align with business strategies.
An analyst at an investment bank : You work as an analyst at an investment bank. The CEO of the firm just came back from the Annual Policy Symposium at Jackson Hole. He tells you that he listened to the presentation by Professor Robert Hall, who chairs the National Bureau of Econom..
Firms stock price on the announcement date : ABC Corp is a public company and announces its intention to raise $300 million by selling new shares. What do market signaling studies suggest will happen to the firm's stock price on the announcement date? Why?
List of psychiatric disorders : Question 1: According to the list of psychiatric disorders provided in the DSM-IV-TR PowerPoint material, a Mood Disorder is diagnosed on:
Earn minimum rate of return : The Good Life Insurance Co. wants to sell you an annuity which will pay you $660 per quarter for 30 years. You want to earn a minimum rate of return of 5.1 percent. What is the most you are willing to pay as a lump sum today to buy this annuity? How ..
The following information is available for pacilio security : The following information is available for Pacilio Security Services Inc. for 2011, its first year of operations. Pacilio provides security services for local sporting events.
Stock portfolio-what is the portfolio beta : You own a stock portfolio invested 10 percent in stock Q, 25 percent in stock R, 50 percent in stock S, and 15 percent in stock T. The betas for these four stocks 1.4, .6, 1.5, and .9, respectively. What is the portfolio beta?
What are the objectives of a jit system : In order to successfully implement the JIT system, what arrangements must the company make with vendors? How will these arrangements be formalized?
How do you calculate compounding interest : Mr. Miser loans money at an annual rate of 20 percent. Interest is compounded daily. What is the actual rate Mr. Miser is charging on his loans? How do you calculate compounding interest?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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