What is the current value of the annuity

Assignment Help Finance Basics
Reference no: EM131835749

A 6-year annuity of twelve $7,750 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 9 percent compounded semiannually, what is the value of this annuity five years from now? What is the value three years from now? What is the current value of the annuity?

Reference no: EM131835749

Questions Cloud

Explain the behaviors of the sales force that are targeted : Assignment: Sales Force Compensation- Explain the behaviors of the sales force that are targeted with the compensation plan.
Discuss the most appropriate form of ownership for business : Determine if it would make more sense to open the new business you describe or to purchase the existing business you selected. Explain your reasoning.
Evaluate financial reporting of state and local governments : Evaluate the financial reporting of state and local governments and assess the reporting requirements in accordance with governmental accounting standards board
What is the present value of the annuity : If the interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter
What is the current value of the annuity : What is the value three years from now? What is the current value of the annuity?
Find out how many times a customer generated an invoice : Find out how many times a customer generated an invoice - make sure the counted column heading reads "Invoices_generated"
Payments are an ordinary annuity : What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?
Discuss Martinetti approach to market the acquisition : As a member of the Martinetti management team, you have been selected to meet with the Sand Coast Resort leadership team to discuss Martinetti's approach.
How much can you withdraw each year : Additionally, when you retire you will transfer your money to an account that earns 6.25 percent. How much can you withdraw each year?

Reviews

Write a Review

Finance Basics Questions & Answers

  Competitive procurement dollar amounts

Organizations may also set a procurement process based on competitive procurement dollar amounts. Find a case study that discusses procurement, and then discuss and analyze the procurement cycle.

  Find the sample size needed

Find the sample size needed. you must show your work How many students must be randomly selected to estimate the mean weekly earnings of students at one college

  How much will rocky pay in tuition his first year of school

In two years Rocky plans to enroll at Whatsamatta U., a prestigious university in Frostbite Falls, MN. If the current tuition is $23,500 per year and is expected to increase at a rate of 6% per year, how much will Rocky pay in tuition his first ye..

  Explain tax advantage of allocating too much to the building

Western Bank & Trust purchased land and a building for the lump sum of $3,000,000. To get the maximum tax deduction, Western allocated 90% of the purchase price

  Process of the global financial crisis

Answer the following questions? 1. Explain the how the process of the global financial crisis in 2008 occurred?

  Which of following securities has the largest present value

Which of the following securities has the largest present value? Assume in all cases that the annual interest rate is 8 percent and that there are no taxes. a. A security that pays you $1,000 at the end of 1 year, $2,000 at the end of 2 years, and..

  Franchise payback period-net present value

Calculate each franchise's payback period, net present value (NPV), internal rate of return (IRR), and modified internal rate of return (MIRR).

  Calculate the amount of additional funds

1. Please complete the forecast for three years of the income statement and the balance sheet, using the spreadsheet. 2. Calculate the amount of additional funds needed for each of the three years.

  Weights used in the calculation of betterpie wacc

What would be the weights used in the calculation of BetterPie's WACC?

  Why is there a cost of retained earnings

Equity can be raised in two ways; by retaining some of the current year's earnings and by issuing common stock. Please explain.

  Average receipts per theater for the movie chicago

The file chicago.txt contains daily average receipts per theater for the movie Chicago (January 3, 2003 to April 18, 2003). Analyze the data set using time series methods. This series may have a trend as well as seasonality (day of the week).

  Why are contingent assets and liabilities like options

Why are contingent assets and liabilities like options? What is meant by the delta of an option? What is meant by the termnotional value?

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