How much will you pay for the policy

Assignment Help Finance Basics
Reference no: EM13258084

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $40,000 per year forever. If the required return on this investment is 6.30 percent, how much will you pay for the policy?

Reference no: EM13258084

Questions Cloud

Estimate the power output of sound : The intensity in normal conversation, when about50 cm from the speaker, Estimate the power output of sound from a person speaking in normal conversation
What is the present value : An investment will pay you $50,000 in 11 years. If the appropriate discount rate is 7.7 percent compounded daily, what is the present value?
Nutrition encompasses how we consume the food : Nutrition encompasses how we consume, digest, metabolize, and store food. Nutrition is an ancient science that dates back to the 14th century. Nutrition involves studying the factors that influence eating patterns.
State equation showing how it acts as a base : Write another equation showing how it acts as a base toward water. Express your answer as a chemical equation. Identify all of the phases in your answer.
How much will you pay for the policy : The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $40,000 per year forever. If the required return on this investment is 6.30 percent, how much will you pay for the policy?
Find the sending-end voltage for load factor of leading : A 30-km, 34.5-kV, 60-Hz three-phase line has a positive-sequence series impedance z = 0.19 + j0.34 ?/km. The load at the receiving end absorbs 10 MVA at 33 kV. Assuming a short line, calculate: (a) ABCD parameters,
What amount must you deposit each year : You want to have $78,000 in your savings account 12 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.80 percent interest, what amount must you deposit each year?
Classified as a sales-type lease : The lease is appropiately classified as a sales-type lease. Asuming the interest rate for the lease is 10% what will the balance reported as a liability be by the lessee on dec 31, 2007?
Art and craft items : The following information is available for the first month of operations of Korv Inc., a manufacturer of art and craft items:

Reviews

Write a Review

Finance Basics Questions & Answers

  Bill of rights and its analysis

When the constitution was proposed in 1787, it was gravely opposed by anti-federalists due to the fear of  Federal governments. They had already just passed through difficult colonial period under British. The amendments are the following:

  Calculate the present value of the salary

Suppose today is August 1, 2006. Charles is thirty years old and has a Bachelor of Science degree in computer science. He is currently employed as a Tier 1 field service representative for a telephone corporation and earns $38,000 a year that he anti..

  What is the reward-to-volatility ratio for the equity fund

Your client chooses to invest $50,000 of her portfolio in your equity fund and $150,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund?

  Computation of net present value of investment

Computation of net present value of investment where The prevailing interest rate is 6%

  Preferred stock vs. common stock

Preferred stockholders do not participate in the receivings of the corporation beyond the stated rate in the way that common stockholders do.

  Find the current stock price

Microtech Corporation is increasing rapidly and currently needs to retain all of its earnings, hence it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $1 coming in three years from ..

  Calculate interest in loan payment

Suppose you just receive a mortgage to buy your first house from ABH bank. Do you think you are going to contribute more to decrease of your unpaid balance at the end of each month in the early years of your payments.

  How do you define that measure

In situations where expected rate on invested differ substantially, standard deviation may not provide a good picture of one investment's stand-alone risk relative to another. In this situation what other measure of risk would you use? How do yo..

  Company structure and customer response times

Suggest a modification to the structure which will remedy the impact of structure on responsiveness.

  What is the firm''s corporate cost of capital

It pays federal, state, and local taxes at a 35 percent marginal rate. a. What is the firm's corporate cost of capital?

  Explain the term direct finance

If financial markets operated perfectly and without cost financial intermediaries would not exist. All finance would be direct finance. Describe what is meant by the term direct finance.

  Merger waves

Looking for a different manner to Identify the key merger waves in U.S. history and describe factors that led to their occurrence.

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