User Account

All Pages

What is the present value of an annuity

Assignment Help Accounting Basics
Reference no: EM131789403

Question - Time Value of Money

a. What is the real future value of $10,000 which will sit in a savings account for 20 years, earning 4% interest compounded yearly during a period of 4% annual inflation?

b. What is the present value of an annuity which makes its first payment in 3 years, makes a total of 10 payments of $10,000 each year with an overall discount rate of 7%?

c. What is the PV of a perpetuity which pays $200 one year from today and then each year thereafter? Assume a discount rate of 8%.

d. What is the nominal future value of $10,000 one year from today if it can be invested in a portfolio that expects to earn, in real terms, 4% per year with inflation of 3% per year?

Reference no: EM131789403

Questions Cloud

How many analysts rated the company : How many analysts rated the company? How do the analysts rank this company among all the companies in its industry
Strategic implications of how an organization produces : Consider the strategic implications of how an organization produces and interacts with its partners, customers, and suppliers.
Formulating the benefit-cost ratio criteria : Haryana government is considering to extend Bhakra canal into a desert area for irrigation. The initial cost of the project is expected to be Rs 3.75 crore.
How does agile project management expose poor work processes : How does agile project management expose poor work processes or stumbling blocks within organizations? How is this beneficial for an organization?
What is the present value of an annuity : What is the present value of an annuity which makes its first payment in 3 years, makes a total of 10 payments of $10,000 each year
Discuss the company did not issue any bonds payable : The company paid a cash dividend of $48,600 and it did not dispose of any long-term investments or property, plant, and equipment
What will the customer be charged : A customer places 10 orders with a total direct cost of $3,000, orders 300 separate items, and makes 5 returns. What will the customer be charged
According to the national climatic data center : According to the National Climatic Data Center, during 1991, the lowest temperature recorded in Indianapolis, Indiana, was 0°F. If x is the wind speed
According to the national climatic data center : According to the National Climatic Data Center, during 1991, the lowest temperature recorded in Indianapolis, Indiana, was 0°F. If x is the wind speed

Reviews

Write a Review

Accounting Basics Questions & Answers

  How does the application of the dollar value lifo method

What are the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method?

  The cost of the merchandise returned

Journalize Showcase Co.'s entries for (a) the sale, including the cost of the merchandise sold, (b) the credit memo, including the cost of the returned merchandise.

  Cost accounting given process costing problem

In Cost Accounting given Process Costing problem, how do I determine how many units are completed and transferred to finished goods during a period?

  Suppose a firm faces a current tax rate of 35 but expects

suppose a firm faces a current tax rate of 35 but expects this rate to fall to 20 in the future. employees on average

  Sale proceeds was credited to the investment account

The total of the sale proceeds was credited to the investment account.

  Find a recent article that describes the use of rfid

Find a recent article that describes the use of RFID in manufacturing. Briefly describe the example(s) discussed in the article.

  Selected accounts from the chart of accounts

Selected accounts from the chart of accounts of Fornelli Co. are shown below.

  Discuss purchases gross and uses a periodic inventory system

Purchased inventory from Encino Company on account for $44,800. Blue records purchases gross and uses a periodic inventory system

  The assets were sold for 260000 and the liabilities were

ariel mandy and tisha are partners in a tanning salon. the assets liabilities and capital balances as of july 1 2010

  Gift tax is based on which property

When property is transferred, the gift tax is based on:

  Why not just focus on the integrated model from the start

Why take the time to develop separate REA diagrams for each business cycle if the ultimate objective is to combine them into one integrated enterprise-wide data model? Why not just focus on the integrated model from the start?

  Calculate the npv for both track hoes

Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd