Life insurance death benefit in annual payments

Assignment Help Financial Management
Reference no: EM131844012

Danielle is told she can receive a 250000 life insurance death benefit in annual payments of 25000 starting today for 11 years total. And a twelfth payment of 16265 at the beginning of the twelfth year. Or she could receive 20000 per year at the beginning of each year for nine years plus a balloon payment at the beginning of the tenth year, Calculate the balloon payment.

Reference no: EM131844012

Questions Cloud

How much will you accumulate at retirement : How much will you accumulate at retirement after 48 years of investing?
Calculate discount yield on this t-bill : Calculate the discount yield on this T-bill.
Investor who is not holding well diversified portfolio : which of the following investments is clearly preferred to the others for an investor who is not holding a well diversified portfolio?
Calculate the accumulated value in the account : Calculate the accumulated value in the account just after the last(48th) monthly deposit, the annual nominal interest rate is 3.5%, convertible monthly.
Life insurance death benefit in annual payments : Danielle is told she can receive 250000 life insurance death benefit in annual payments of 25000 starting today for 11 years total. Calculate balloon payment.
Amount he needs to write check for to pay off the loan : Calculate the amount he needs to write a check for to pay off the loan. The annual nominal interest rate is 3.6%, convertible monthly.
Calculate the profitability index for each investment : Calculate the profitability index for each investment. Calculate the NPV for each investment.
What is the project profitability index : Bill plans to open a self-serve grooming center in a storefront. What is the project’s profitability index (PI)?
Calculate the futures price of the index : The S&P 500 just closed at 2500 (T=0) and has continuously compounded annual dividend yield of 2.0%. you will need to calculate the futures price of the index.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the holding period return for the year on bond

What is the holding period return for the year on a bond with a par value of $1,000 37. and a coupon rate of 8.5% if its price at the beginning of the year was $1,215 and its price at the end of the year was $1,020? Assume interest is paid annually.

  Calculate amount of interest paid over the duration of loan

Calculate the amount of interest paid over the duration of the loan.

  Calculate their debt limit

The Smith family has a gross income of $85,000 a year and they pay the following bills:-  Calculate their Debt limit.

  Financial ratios of potential borrowing firm

Suppose that the financial ratios of a potential borrowing firm take the following values:

  Calculate the depreciation expense

You are given the following information for Gandolfino Pizza Co.: sales = $51,000; costs = $22,700; addition to retained earnings = $7,600; dividends paid = $2,800; interest expense = $5,100; tax rate = 35 percent. Calculate the depreciation expense.

  Using the line of credit to pay off the credit cards

A couple bought a $300,000 home four years ago using a 15 year loan with an annual rate of 4.5% and a 20% down payment. What would be their monthly payments? Today they want to use a home equity line of credit to pay off some credit card debt. How mu..

  Study as a student in the master of finance program

It is the end of your final year of study as a student in the Master of Finance program and you are trying to determine what you are going to do over the remaining 35 years of your working life. You are trying to decide whether you should remain at u..

  Suppose the titanic ice cube dividend grows

Suppose the titanic ice cube co's dividend grows at a 20 percent rate for the next three years.

  How are exchange-traded funds-unit investment trusts

How are exchange-traded funds (ETFs) and unit investment trusts (UITs) different from index mutual funds, and from each other? Please list your points.

  Considering a new three-year expansion project

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,580,000.

  Required monthly payments between these two loans

What is the difference in required monthly payments between these two loans?

  Consultant to estimate the company wacc

Daves Inc. recently hired you as a consultant to estimate the company’s WACC. What is its WACC?

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