Present value of the ordinary annuities

Assignment Help Financial Management
Reference no: EM131328492

Present Value of an Annuity

Find the present value of the following ordinary annuities. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.)

$200 per year for 10 years at 6%.

$

$100 per year for 5 years at 3%. 

$

$200 per year for 5 years at 0%.

$

Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.

$200 per year for 10 years at 6%.

$

$100 per year for 5 years at 3%. 

$

$200 per year for 5 years at 0%.

$

Reference no: EM131328492

Questions Cloud

Discuss about the case given below : Review the my health professionskit from Pearson for a variety of resources that support this week's readings from the textbook.To access the resources, select the chapter(s) referenced this week from the Welcome dropdown menu in the upper right co..
Analyze current practice to formulate researchable problems : Critically analyze current practice to formulate researchable problems. Evaluate research as the basis for decision-making to improve outcomes through translation into evidence-based practice
Find the interest rate or rates of return : Find the interest rate (or rates of return) for each of the following situations. You borrow $750 and promise to pay back $795 at the end of 1 year. You borrow $10,000 and promise to make payments of $3,550 at the end of each year for 3 years.
Explain how the federal system of government works : Describe the importance of an informed, effective citizenship for the national government and political processes.
Present value of the ordinary annuities : Find the present value of the following ordinary annuities. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the s..
How is cam used in your facility : How is CAM used in your facility? What are the outcomes you have seen? What improvements can you make? Cite sources from the readings and the online library
Calculate npv for each computer over its life : Calculate NPV for each computer over its life. Rank the computers in descending order, based on NPV.- Use the equivalent annual cost (EAC) method to evaluate and rank the computers in descending order, based on EAC.
What epidemiological issues did you find in your community : What epidemiological issues did you find in your community? What differentiates these as epidemiological issues vs. individual issues
All warrant holders decide to exercise today : The capital structure of Ricketti Enterprises, Inc., consists of 21.5 million shares of common stock and 3.0 million warrants. Each warrant gives its owner the right to purchase one share of common stock for an exercise price of $20.50. The current s..

Reviews

Write a Review

Financial Management Questions & Answers

  Estimate becks debt-to-equity ratio

Assume Chen and Beck are two Japanese firms of comparable size in the igloo building industry. Both have a 30% tax rate. Chen has zero debt, a beta of 1.2 and Beck has a beta of 1.5. Estimate Beck’s .debt-to-equity ratio.

  Prepare stockholders equity section of the balance sheet

Wells Fargo & Company, headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it reported the following selected accounts (in millions) as of December 31, 2014. Retained earnings $40,000 Preferred stock 8,333 C..

  Would it become a discount or premium bond

What is the value of a 10-year, $1,000 par value bond with a 10% coupon paid semi-annually if its required rate of return is 10%? What would its value be if, just after it had been issued, the expected inflation rate rose by 3% causing investors to r..

  Security based on the capital asset pricing model

If there is a security with a negative beta, for example -0.5, what can you say about the expected return of the security based on the Capital Asset Pricing Model (CAPM), or the Security Market Line (SML)? Would it be greater or smaller than the risk..

  Recently announced that its next annual dividend

Precision Engineering recently announced that its next annual dividend will be $1.20 per share with later dividends increasing by 2.5 percent annually. What is the current value of this stock to you if you require a 12 percent rate of return?

  Average beta of the new stocks added to the portfolio

A mutual fund manager has a $20 million portfolio with a beta of 1.15. The risk-free rate is 5.50%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After i..

  How many rights will dmz grant to its existing shareholders

The firm Davis & Martin and Zanders, Inc. (DMZ) has just announced that it will issue 10 million shares of common stock through a rights issue at a subscription price of $20. Before the announcement, DMZ shares were trading at $26, and there were 50 ..

  Discussion forum no unread replies

Discussion Forum No unread replies. No replies. Research Methods Instructions A local pizza maker is considering changing its cheese from mozzarella to a provolone/mozzarella cheese mix in a 1:2 ratio or, alternatively, a 2:1 ratio. This pizza maker ..

  Decide to invest in corporate bonds

Suppose you decide to invest in corporate bonds. Accordingly, you visit a bond store. You see 3 bonds on the shelf. One is priced at $1,015.53, another is priced to sell at $1,300.00, and a third is selling at a discounted amount of $876.06. But you ..

  Expected interest rate

The real risk-free rate is 2.8%. Inflation is expected to be 2.85% this year, 4.75% next year, and then 3.3% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year T..

  Cause uncertainty in cash budget for an enterprose

Describe elements which can commonly cause uncertainty in the cash budget for an enterprose and the rationale for each. If you are the CFO of a company what techniques would you use to cope with this uncertainty? How might this change in a very large..

  The company ranks projects by their payback periods

Project Ell requires an initial investment of $50,000 and the produces annual cash flows of $30,000, $25,000, and $15,000. Project Ess requires an initial investment of $60,000 and then produces annual cash flows of $25,000 per year for the next ten ..

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