What is the present value of an annuity

Assignment Help Finance Basics
Reference no: EM13257659

What is the present value of an annuity of $6,000 per year, with the first cash flow received 3 years from today and the last one received 25 years from today? Use a discount rate of 7 percent.

Reference no: EM13257659

Questions Cloud

Ending inventory and cost of goods sold : What was ending inventory and cost of goods sold on 12/31 under the FIFO cost flow assumption? What was ending inventory and cost of goods sold on 12/31 under the LIFO cost flow assumption?
Define the admittance of the circuit in complex fork : 1.explain what is the instantaneous values of AC AND phase shift angle are. Explain what the effective and average values of AC are. How are they related with amplitude. 2.Draw a calculated conductivities triangle for the circuit with a parallel co..
Why should the option premium increase with the strike price : Consider your payoff diagram with all three options graphed together. Intuitively, why should the option premium increase with the strike price?
Problem related to productivity gain : last year the nursing home prepared 200,000 standard meals, 40,000 low-sodium meals, and 50,000 other special meals, this year, they prepared meals, 60,000 other special meals, the total time for the foodworkers this year was 76,500 hours using a ..
What is the present value of an annuity : What is the present value of an annuity of $6,000 per year, with the first cash flow received 3 years from today and the last one received 25 years from today? Use a discount rate of 7 percent.
Is there any advantage to investing in the stock : Suppose XYZ stock pays no dividends and has a current price of $50. The forward price for delivery in 1 year is $55. Suppose the 1-year eective annual interest rate is 10%.
Find amount of retained earnings at december : Smith Company engaged in the following transactions during 2007. The amount of retained earnings at December 31, 2008 is?
Determine the book value of the goodwill : Determine the book value of the goodwill on December 31, 2008, prior to making the impairment adjustment. Illustrate the effects on the accounts and financial statements of the December 31, 2008, adjustment for the goodwill impairment.
Machinery account for five years : Given the machinery account for 5 years writing off depreciationat 10% on the written down value.

Reviews

Write a Review

Finance Basics Questions & Answers

  Insurance company as a financial intermediary

he savings rate domestically has raised, probably due to uncertainty about the future. All else equal, how should this affect market interest values?

  Receipt of dividends affect the investment account

Bista Company announces and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the investment account of the investor under each of the following accounting methods?

  What percentage increase in the ms will be necessary

Assume that the VM will turn over 4 times next year if the country wants a GDP of $22 billion at the end of next year, what will have to be the size of the money supply? What percentage increase in the MS will be necessary to achieve the target GDP?

  Require to cash in at the end of ten years

you will require to cash in at the end of ten years. suppose your brother is trustworthy and both investments carry similar risk.

  What has been the trend in mergers and acquisitions in years

What has been the trend in mergers and acquisitions in recent years? Up, down? What are some of the explanations? Is there evidence that the trend may change? The paper can be 800-100 words.

  Higher risk-adjusted returns

Suppose the following information over a five year period: Estimate which stock has higher risk-adjusted returns when using the Sharpe index.

  Financial basics to be considered for short term borrowing

What financial basics should be considered when determining the most appropriate amount of short term borrowing

  What is the constatnt rate the stock is expected

Stock price is $40 and it recently paid $1.20 dividend. This dividend is expected to grow by 15% for the next 3 years, and then grow forever at a constat rate, g. If the required rate of return is %12, what is the constatnt rate the stock is expec..

  What are the portfolio weights for a portfolio

What are the portfolio weights for a portfolio that has 132 shares of Stock A that sell for $42 per share and 112 shares of Stock B that sell for $32 per share? (Round your answers to 4 decimal places. (e.g., 32.1616))

  Present value of 20 year annuity

Find out the present value of 20-year annuity with the semiannual payments of $500 evaluated at a 14 percent interest rate?

  Evaluate the option''s exercise value

The exercise price on one of ORNE Corporation's call options is $35 and the price of the underlying stock is $34 - evaluate the option's exercise value

  Expanding laboratory testing

An administrator at Saint Jude Hospital is planning how to use some space made available when the outpatient clinic moved to a new building. She has narrowed choices, as follows:

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