User Account

All Pages

Interpret the present value of the given annuity

Assignment Help Finance Basics
Reference no: EM131928304

On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $140 from her checking account at the end of each month and deposit it into her Christmas Club account, where it will earn 6 7/8% interest. He just had is 29 birthday and his ordinary annuity comes to term when he is 65 (round answer to nearst cent)

A.  We know the present value is 35,800.11

(b) Interpret the present value of the given annuity. You would have to invest a lump sum of $  

 now instead of $140 per month. (this is the one I need help on)

Reference no: EM131928304

Questions Cloud

Which of the two pricing methods-return on assets pricing : Which of the two pricing methods-return on assets pricing or gross margin-pricing is more appropriate for the decision analysis? Explain your answer.
Discounted cash flow valuation model : According to the discounted cash flow valuation model what are the two key elements for valuation?
Evaluate the portfolio weights of each stock : If you own 500 shares of Company A at $19.25, 800 shares of Company B at $42.22, and 300 shares of Company C at $28.44, what are the portfolio weights.
What is the future value at the end of year 1 : The interest rate is 16% per year, compounded quarterly, and we consider the no-inter-period-interest policy. What is the future value at the end of year 1?
Interpret the present value of the given annuity : A. We know the present value is 35,800.11 (b) Interpret the present value of the given annuity. You would have to invest a lump sum of $
Which product would you recommend that neils company focus : Which product would you recommend that Neil's company focus its advertising campaign, product X or Y?
Find the amount needed at maturity to generate : Find the amount needed at maturity to generate $1,100 per month interest, if they can get 7 1/4% interest compounded monthly?
What is the yield to call of the bond : A 5.50 percent coupon bond with 13 years left to maturity can be called in four years. The call premium is one year of coupon payments.
Find the value of cadwell stock today : After 5years, Caldwell's dividend is expected to grow at a constant 4% rate, indefinitely. Investors require a 10% rate of return.

Reviews

Write a Review

Finance Basics Questions & Answers

  Prepare a cash budget for august 2011 for pdc and describe

A. Prepare PDC’s sales schedule, purchases schedule, and wages schedule for August 2011. B. Prepare a cash budget for August 2011 for PDC and describe how the forecast affects the end-of-month cash balance.

  Evaluate the usefulness of relative ppp in predicting move

Evaluate the usefulness of relative PPP in predicting movements in foreign exchange rates on: a. Short-term basis (for example, three months). b. Long-term basis (for example, six years).

  How do us companies use international banks

Explain the differences between domestic banks and international banks. How do U.S. companies use international banks?

  Discuss any significant disadvantages that you would expect

Discuss any significant disadvantages that you would expect in issuing a high coupon bond - If Tangential wishes to pay US dollars and not Japanese Yen, what can the company do? Illustrate and analyse your answer with diagrams showing the cash flo..

  Nordic and scandinavian management culture at tietoenator

What are the characteristics of the Nordic and Scandinavian management culture at TietoEnator?- What ways can a company use to leverage its knowledge resources globally?

  What is the future value of these investment cash flows

If the appropriate interest rate is 6.75 percent, what is the future value of these investment cash flows six years from today? (Round answer to 2 decimal places, e.g. 15.25.)

  Higher education and professional development

Discuss the role of higher education and professional development providers in the preparation of Purchasing and Supply Management professionals

  Compute the tangency portfolio weights

Compute the betas of AOL, Microsoft, and Intel with respect to the tangency portfolio found in exercise 5.2.

  What common obstacles exist to public policy evaluation

Please see details. Can you please reply to this help request at your earliest. 1. What common obstacles exist to public policy evaluation?

  What benefits cab be derived from breakeven analysis

What benefits cab be derived from breakeven analysis? What are some problems with breakeven anlysis

  Month in a bond account

Save for retirement over the next 35 years. Invest $770 per month in a stock account and $370 per month in a bond account

  Assume evco inc has a current price of 50 and will pay a 2

1.assume evco inc. has a current price of 50 and will pay a 2 dividend in one year and its equity cost of capital is

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd