What happens to value of your investment

Assignment Help Financial Management

Reference no: EM131959935

Suppose you just bought a 15-year annuity of $7,700 per year at the current interest rate of 11 percent per year. What is the value of your annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value $

What happens to the value of your investment if interest rates suddenly drop to 6 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $

What if interest rates suddenly rise to 16 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present Value $

Reference no: EM131959935

Questions Cloud

Explain the types of products or services of your company : Suggest five (5) ways in which the primary stakeholders can influence the organization's financial performance. Provide support for the response.

Florida state savings bond can be converted : A Florida state savings bond can be converted to $1,000 at maturity 14 years from now.

Explain how the 360-degree feedback will be used : Explain how the 360-degree feedback will be used. In this case, explain that the feedback is for a class assignment.

What are the firm interest tax savings : (Computing interest tax savings) Dharma Supply has earnings before interest and taxes? (EBIT) of 520,000,interest expenses of 259,000 and faces a corporate tax.

What happens to value of your investment : What happens to the value of your investment if interest rates suddenly drop to 6 percent?

Earnings and dividends per share are expected : Company Z's earnings and dividends per share are expected to grow indefinitely by 4% a year.

Write a summary for a short story for science fiction : Write a summary for a short story for my Science Fiction class from a pdf textbook. I have to read a story: Story of my Life by Ted Chiang.

Promote innovation in a team environment : Recently the production levels of your work group or team appear to have decreased. You need, therefore, to increase the quality and quantity of outputs.

Compute the wacc of a firm : Compute the WACC of a firm that currently has $2 million in debt and $3 million in equity and $1 million in preferred stock.

User Account

All Pages