What is the most you should pay for annuity

Assignment Help Financial Management

Reference no: EM131956528

1. A new investment opportunity for you is an annuity that pays $550 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

a. $1,412.84

b. $1,487.20

c. $1,565.48

d. $1,643.75

e. $1,725.94

2. Suppose you are buying your first home for $145,000, and you have $15,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?

a. $741.57

b. $780.60

c. $821.69

d. $862.77

e. $905.91

Reference no: EM131956528

Questions Cloud

What if apartment offered the last month for free : You found an apartment (A) for $1,000 per month, and they’re offering the first month for free. What if apartment A offered the last month for free.

Find conversion permium for bike tours convertible bond : The Common Stock of Bike Tours,Inc pays no dividend and has a market price of $80 per share. Bike Tours' 8% ($80 annual coupon) convertible bond sells.

What is the net amount raised : What is the net amount raised? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567).

Discuss in the detail the balance sheet : Discuss in the detail the Balance Sheet. What is shown on the Balance Sheet? Why is the Balance Sheet important to a hospitality firm?

What is the most you should pay for annuity : You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Issues that could arise from implementing new policy : Identify potential ethical/moral issues that could arise from implementing this new policy - whether the policy is considered an ethical

Evaluate the level of responsibility of the company : Acc 564 accounting information system -Evaluate the level of responsibility of the company in terms of the effectiveness of the response to the security breach

How much would you be able to withdraw every year : How much would you be able to withdraw every year? how many years would you be able to make this exact withdrawal?

Nicholas would have to pay on convertible-callable bond : Which of the following most accurately describes the coupon rate that Nicholas would have to pay on the convertible, callable bond?

User Account

All Pages