What is the future value of the same annuity due

Assignment Help Financial Management

Reference no: EM131859870

1. What’s the interest rate of a 8-year, annual $3,700 annuity with present value of $20,000? (Round your answer to 2 decimal places.)

2. What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $77,000 in six years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

3. If the future value of an ordinary, 6-year annuity is $5,900 and interest rates are 7.5 percent, what is the future value of the same annuity due? (Round your answer to 2 decimal places.)

4. A perpetuity pays $160 per year and interest rates are 8.1 percent. How much would its value change if interest rates increased to 9.6 percent? (Round your answer to 2 decimal places.)

Reference no: EM131859870

Questions Cloud

Assume bond has an effective duration : Assume a bond has an effective duration of 10.5 and a convexity of 97.3.

What’s the loan effective annual rate : A loan is offered with monthly payments and a 12.25 percent APR. What’s the loan’s effective annual rate (EAR)?

Mutual fund the basis can change over time : Mutual fund the basis can change over time,

How would the payment differ if you paid interest only : You wish to buy a $22,500 car. The dealer offers you a 4-year loan with a 10 percent APR. How would the payment differ if you paid interest only?

What is the future value of the same annuity due : If the future value of an ordinary, 6-year annuity is $5,900 and interest rates are 7.5 percent, what is the future value of the same annuity due?

Approximate percentage change in price using duration : What is the approximate percentage change in price using duration only for a yield decrease of 90 basis points?

Investment banks are similar to commercial banks : Investment banks are similar to commercial banks except that they invest deposits in stocks and bonds rather than loans.

What will the expected rate of return on portfolio be : If you require a risk premium of 10%, how much will you be willing to pay for the portfolio? What will the expected rate of return on the portfolio be?

Value of mixed stream for the mixed stream of cash flows : Value of a mixed stream For the mixed stream of cash flows shown in the following table,

User Account

All Pages