What is the present value of the annuity

Assignment Help Business Economics

Reference no: EM131009616

A 15-year annuity pays $2,200 per month, and payments are made at the end of each month. If the interest rate is 10 percent compounded monthly for the first seven years, and 6 percent compounded monthly thereafter, what is the present value of the annuity?

Reference no: EM131009616

Questions Cloud

Five ads from business publications : Choose five ads from business publications such as the Wall Street Journal, Fortune, or Bloomberg Business Week. For each ad, write a description of how you think the company has segmented the business market.

Manipulates market activities to achieve political goals : China applies state capitalism which manipulates market activities to achieve political goals. Describe the political and legal systems in China and their effect on MNEs (multinational enterprise) doing business in China.

What is the lowest probability of a correct guess : In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Shou..

What happens to the equilibrium price for pollution rights : Under a cap-and-trade program designed to control greenhouse gas, suppose the demand for pollution rights increases as the economy improves. What happens to the equilibrium price for the pollution rights?

What is the present value of the annuity : A 15-year annuity pays $2,200 per month, and payments are made at the end of each month. If the interest rate is 10 percent compounded monthly for the first seven years, and 6 percent compounded monthly thereafter, what is the present value of the an..

Used in assigning the issues bond rating : Bond rating agencies have invested significant sums of money in an effort to determine which quanatative and nonquanatative factors best predict vately with corporate personnel to get nonpublic information that is used in assigning the issues bond ra..

Describe the benefits-drawbacks of balance transfer cards : Chris Ricci has several credit cards, on which she is carrying a total current balance of $12,500. She is considering transferring this balance to a new card issued by a local bank. the bank adervtises that, for a @5 fee, she can transfer her balance..

Explain the derivation of a production possibility curve : Derive and explain the derivation of a production possibility curve. Show how it is possible to have actual GDP above "potential GDP." What is potential GDP?

Strong supporter of free trade : if you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered their also? dis..

User Account

All Pages