What is the annual equal amount of money

Assignment Help Financial Management

Reference no: EM131953001

What is the annual equal amount of money you have to set aside to guarantee yourself an annual income to perpetuity of $65,000 starting in 41 years from now? You make the first payment in two years from now and the last payment in 40 years. Assume an interest rate of 4% (EAR).

Reference no: EM131953001

Questions Cloud

Is fair to the insurance company and why : Do you think this is fair to the home owner and why? Is fair to the insurance company and why?

What percentages of your money must be invested : What percentages of your money must be invested in XOM and the T-bill, respectively, to form a portfolio with an expected return of 10%?

Deals with case relating to eeo law : Find an article that deals with a case relating to an EEO law. Discuss the article and analyze the effectiveness of the law in protecting the complaining party.

What is the present value of firm investment : What is the present value (PV) of a firm’s investment in $ 1 million U.S. Treasury Bonds yielding 5%,

What is the annual equal amount of money : What is the annual equal amount of money you have to set aside to guarantee yourself an annual income to perpetuity of $65,000 starting in 41 years from now?

Electric power for these lights : A facility uses lights for 5,500 hrs/yr. Presently, they use fluorescent lighting and pay $11,550/yr for electric power for these lights.

What is the present value of his contract : What is the present value of his contract? how large is his quarterly pay (assuming the present value of his contract remains the same)?

How much cash will zang raise net of the spread : What is the correctly valued offer price? How much cash will Zang raise net of the spread?

Is bankruptcy considered a real threat to those companies : Is bankruptcy considered a real threat to those companies that offer 50 year bonds? Why?

User Account

All Pages