What is the present value and value today

Assignment Help Financial Management

Reference no: EM131020113

What is the present value of $2,925 per year, at a discount rate of 8 percent, if the first payment is received 10 years from now and the last payment is received 23 years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Value today $

Reference no: EM131020113

Questions Cloud

Outstanding debts and calculate her debt safety ratio : Use worksheet 6.1 Natalie fry is evaluating her debt safety ratio how monthly take home pay is $3,320 each month she pays $380 for an auto loan $120 on a personal line of credit $60 on a department store charge card and $85 on her bank credit card co..

How much will george have in his retirement account : Starting today, George is going to contribute $300 on the first of each month to his retirement account. His employer will contribute an additional 50% of the amount George contributes. If both George and his employer continue to do this and he can e..

Find the price of a call option on the stock : The current price of a stock is $16. In 6 months, the price will be either $18 or $13. The annual risk-free rate is 4%. Find the price of a call option on the stock that has an strike price of $14 and that expires in 6 months. (Hint: Use daily compou..

Net income-total profit margin and cash flow : Brandywine Clinic, a not-for-profit business, had revenues of $12 million in 2012. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. What were Brandywine's net income, total profit margin, and..

What is the present value and value today : What is the present value of $2,925 per year, at a discount rate of 8 percent, if the first payment is received 10 years from now and the last payment is received 23 years from now?

Desires to pay the remainder of the loan in a single payment : Clay Harden borrowed $25,000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 36 equal monthly installments over three years. Immediately after his 20th payment, Clay desires to pay the remainder of the loan in a s..

You expect the price of the bond to be in two years : You own a bond with the following features: 7 years to maturity, face value of $1000, coupon rate of 2% (annual coupons) and yield to maturity of 5.1%. If you expect the yield to maturity to remain at 5.1%, what do you expect the price of the bond to..

What is the effective interest rate per year : A borrower accepts a loan of $550 and is required to pay $42 at the end of each week for 16 weeks. Find the interest rate per week. What is the nominal interest rate per year? What is the effective interest rate per year?

Use daily compounding-find the price of call option on stock : The current price of a stock is $16. In 6 months, the price will be either $18 or $13. The annual risk-free rate is 4%. Find the price of a call option on the stock that has an strike price of $14 and that expires in 6 months. (Hint: Use daily compou..

User Account

All Pages