Reference no: EM131022953
1. What is the present value of a perpetuity of $4,887 if the discount rate is 10.26%?
2. Copy of You have the opportunity to purchase an investment that will generate annual cash flows of $400 per year for the next 9 years and will pay an additional $2,046at the end of 9 years. If your required rate of return on this investment is 9%, how much is the investment worth? State you answer in dollars and cents.
3. How long will it take to double your money at an annually compounded interest rate of 8.4%? State your answer in years to two decimal places.
4. You are considering your retirement, and would like to have accumulated $2,295,734 by the time you retire in 34 years. If you anticipate that your average compounded rate of return over the 34 years until retirement will be 13%, how much will you need to save in your retirement account each year from now until then.
5. If you pay $1,463 for a perpetuity of $135, what is your percent rate of return?
6. Sam was injured in an accident, and the insurance company has offered him the choice of $35,300 per year for 39 years, with the first payment being made today, or a lump sum. If a fair return is 8.85%, how large must the lump sum be to leave him as well off financially as with the annuity? State your answer in whole dollars.
What is the standard deviation of the portfolio
: Security F has an expected return of 10 percent and a standard deviation of 26 percent per year. Security G has an expected return of 17 percent and a standard deviation of 58 percent per year. We form a portfolio composed of 30 percent of security F..
|
Estimates that unless changes are made to social security
: According to a Congressional Budget Office (CBO) report: CBO projects that the population age 65 or older will increase by 87 percent between now and 2037, compared with an increase of just 12 percent over that period in the number of people ages ..
|
What is discounted payback period of proposed investment
: A 2,000 square foot house in New Jersey costs $1,725 each winter to heat with its existing oil-burning furnace. For an investment of $5,000, a natural gas furnace can be installed, and the winter heating bill is estimated to be $1,000. If the homeown..
|
What would the purchase price have to be
: A investor has purchased 10-year bonds, with a face value of $11,000. Interest at 8% is paid quarterly. If she desires to earn 12% nominal interest (compounded quarterly), what would the purchase price have to be?
|
What is percent rate of return-present value of perpetuity
: What is the present value of a perpetuity of $4,887 if the discount rate is 10.26%? How long will it take to double your money at an annually compounded interest rate of 8.4%? If you pay $1,463 for a perpetuity of $135, what is your percent rate of r..
|
How you will implement your plan to improve communication
: As you begin to develop your plan of action, what important considerations will you address to improve the communication and collaborative effort among the group?
|
Mason companys selling price for its only product
: What is the break-even point in units for Mason Company’s product?
|
Was this legislation an example of fiscal policy
: In 2009, Congress and the president enacted "cash for clunkers" legislation that paid up to $4,500 to people buying new cars if they traded in an older, low-gas-mileage car. Was this legislation an example of fiscal policy? Does your answer depend..
|
The current rate be on three-year treasury securities
: One-year Treasury bills currently earn 3.25 percent. You expected that one year from now, one-year Treasury bill rates will increase to 3.45 percent and that two years from now, one-year Treasury bill rates will increase to 3.95 percent. The liquidit..
|