What is the most you should pay for the annuity

Assignment Help Finance Basics
Reference no: EM13275025

You have a chance to buy an annuity that pays $950 at the end of each year for 6 years. You could earn 6% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Reference no: EM13275025

Questions Cloud

Define anthropometric : Define anthropometric and do you know what conditions, hungry or eating, are insulin and glucagon produced? and what organ produces insulin and glucagon ? do you know what dairy foods are better for lactose intolerant individuals? and adoes a mono sa..
By how much did firm net income exceed its free cash flow : By how much did the firm's net income exceed its free cash flow? 1. $66 2. $58 3. $54 4. $52 5. $53
Describe how permittivity might change with time for polymer : An engineer decides to set up an experiment to try this idea out. He decides to use a large metal plate or substrate as one electrode, then paint it and then place another electrode (with a smaller area) directly on top of the paint layer.
What is the maximum hight that the ball reaches : A hollow ball with mass 0.50kg and radius 10cm rolls down a 3.0m high ramp without sliding.What is the maximum hight that the ball reaches?
What is the most you should pay for the annuity : You have a chance to buy an annuity that pays $950 at the end of each year for 6 years. You could earn 6% on your money in other investments with equal risk. What is the most you should pay for the annuity?
Explain how to calculate any concentration or volume : When using M1 x V1 = M2 x V2 to calculate any concentration or volume, what must one remember with regards to glassware when recording / using volumes
How much is the bond worth today : Suppose a U.S. government bond will pay $1,000 four years from now. If the going interest rate on 4-year government bonds is 4.5%, how much is the bond worth today?
Draw the input output and transfer characteristics of mosfet : 1)what are the significance of threshold voltage in enhancement mode MOSFET and depletion type MOSFET 2) draw the input , output and transfer characteristics of MOSFET
Calculate the standard heat of the neutralization reaction : Calculate the standard heat of the neutralization reaction between dilute hydrochloric acid and dilute potassium hydroxide, given that the heat of solution of potassium hydroxide is -54.01 kJ/mol, the heat of formation of potassium hydroxide is -426...

Reviews

Write a Review

Finance Basics Questions & Answers

  How low would the interest rate on the loan

How low would the interest rate on the loan with the compensating balance have to be for you to choose it?

  What is the holding period return for your portfolio

Today stock is selling at $29.5 per share and bond is quoted as 99.2. What is the holding period return for your portfolio?

  What is the depreciation tax shield for this project

Assume a tax rate of 35% and a discount rate of 14%. What is the depreciation tax shield for this project in year 3?

  Create a decision tree for decision analysis

Create a decision tree for decision situation explained in problem 25 and indicate the best decision

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Calculating tcm free cash flows

TCM Petroleum is an integrated oil company headquartered in Fort Worth, Texas. The following are the information on its income statements for 2007 and 2008 (all dollar figures are in millions): Calculate TCM's free cash flows (FCF) for 2007 and..

  Calculate the principal payment and interest payment

Consider a constant payment mortgage of $100,000, maturity thirty years, interest rate 6 percent, monthly payments.

  What is the profit on new sales

The collection cost on these accounts is 4% of new sales, the cost of producing and selling is 79% of sales and the firm is in the 26% tax bracket. What is the profit on new sales?

  Calculate the total fees you will pay on loan commitment

A loan commitment of $4.36 million has an up-front fee of 65 basis points and a back-end fee of 35 basis points. The take down on the loan is 50 percent. Calculate the total fees you will pay on this loan commitment. (Round your answer to 2 decima..

  Computation of the effective interest rate on the bank loan

Computation of the effective interest rate on the bank loan and compensating balance requirement which is based on the total amount borrowed

  Calculate forecasted eva

Atomic Electronics is planning instituting a plan whereby managers will be evaluated and rewarded based on a measure of economic value added.

  Describe two major component of a working capital management

Describe the two major components of a working capital management strategy?

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