What amount will you have to deposit today to fund

Assignment Help Finance Basics
Reference no: EM13261931

A deferred annuity will pay you RM500 at the end of each year for 10 years, however the first payment will not be made until three years from today (payments will be made at the end of years 3 through 12). What amount will you have to deposit today to fund this deferred annuity? Use an 8% discount rate and round your answer to the nearest RM100.

Reference no: EM13261931

Questions Cloud

What is the banks cost of preferred stock : Sixth Fourth Bank has an issue of preferred stock with a $6.60 stated dividend that just sold for $86 per share.
How far did he drop during given time : Since Selma had so much fun, Arnold decides to take up sky diving as well. He falls out of the plane (with a parachute) and after a long time reaches a roughly constant speed of 55m/s. How far did he drop during that time
What is your best estimate of cdbs cost of equity : If the stock sells for $60 per share, what is your best estimate of CDB's cost of equity?
Find the minimum force the nurse needs to apply to syringe : A 5.0mL syringe has an inner diameter of 4.5mm , a needle inner diameter of 0.29mm, What is the minimum force the nurse needs to apply to the syringe
What amount will you have to deposit today to fund : What amount will you have to deposit today to fund this deferred annuity? Use an 8% discount rate and round your answer to the nearest RM100.
What is insider trading and why is it forbidden : What are the four major provisions of the Clayton Act and what types of activities do these provisions prohibit? List all four and describe the activities each prohibits.
How fast must diana through the apple : While eating lunch with friends Diana spots her boyfriend having lunch, and having a good time with, How fast must Diana through the apple so that it hits her boyfriend
How fast can jeffrey travel around the curve on a dry day : Jeffrey is driving his Toyota Prius the freeway and reaches his exit. The exit has a radius of curvature of 25m and is banked 38°. How fast can Jeffrey travel around the curve on a dry day
Compute the net work done : A crate is dragged across a rough floor by a force of 120N asz` shown below. A friction force of 40N acts to slow the motion of the crate. what is the net work done

Reviews

Write a Review

Finance Basics Questions & Answers

  Find company average collection period

Crasler Corporation net income last year was $100,000. The Corporation paid preferred dividends of $20,000 and its average common stockholders' equity was $580,000.

  Formula for pv of future balloon payment

When Federal Reserve notifies banks that they should hold fifteen cents for every dollar that is deposited, it is controlling the money supply by using which of following tools?

  Computation of intrinsic value of stock

You must determine the intrinsic value of Tsetseko Technologies' stock. Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million, and it is expected to increase at a constant rate of 7 percent a year thereafter.

  Objective type questions on bond valuation

Objective type questions on bond valuation and An increase in the level of wealth in the economy

  Fixed annual year-end contribution

You need to show all the steps involved to derive your final answer. If you come to the correct conclusion but do not show all/any necessary steps, you will not earn all/any points on this project.

  Prepare journal entry to record the bonds life

Shopko issues $185,000 of 12 percent, three-year bonds dated January 1, 2009, that pay interest semiannually on June 30 and December 31. They are issued at $189,620.

  Find default risk premium on corporate bonds

Assume 10-year T-bonds have a yield of 5.30% and ten year corporate bonds yield 6.80%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds,

  Question on risk and return

The expected rate of return on an investment with a beta of 2 is twice as high as the expected rate of return of the market portfolio.

  Find the percentage of ownership interest

Primetime Company owns 2/3 of the outstanding $1 par common stock of Satellite corporation on January 1, 2006. In order to increase cash to finance an expansion program,

  Open end mutual fund investing in us

Suppose you have decided to buy a diversified open-end mutual fund investing in U.S. common stocks. Because there are thousands of these funds available,

  Question about compounding

Write down a 1 page brief which explain the term compounding, the time value of money, and the significance of retirement planning and investing.

  Use of time value of money

From any general internet source provide a concise description of example which illustrates the use of time value of money. Please cite and reference the source.

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