What is the present value of the annuity

Assignment Help Finance Basics
Reference no: EM13259382

a 10 year annuity pays $5,000 monthly, in arrears. If the required return is 9% APR compounnded monthly for the first 4 years, followed by 6% APR compounded monthly thereafter, what is the present value of the annuity?

Reference no: EM13259382

Questions Cloud

Terminology is a major issue in development : Is this the best terminology to capture nursing’s unique contributions to patient care outcomes? Or would you choose one of the others identified in the reading this week?
Explain mols of hydrochloric acid to the buffer : A student made an acetic/acetate buffer by mixing 4.665 g of sodium acetate into 600.00 mL of a 0.0242 M acetic acid solution. What would the pH of the solution be as the result of the addition of 0.0050 mols of hydrochloric acid to the buffer
Accounting equation and its elements : Which of the following is not a true statement about the accounting equation and its elements?
Explain the concept of market segmentation : Explain the concept of market segmentation. Then, give an example of a company that segments geographically, demographically, psychographically, or behaviorally.
What is the present value of the annuity : a 10 year annuity pays $5,000 monthly, in arrears. If the required return is 9% APR compounnded monthly for the first 4 years, followed by 6% APR compounded monthly thereafter, what is the present value of the annuity?
What are economic sectors and market subsections included : Choose 3 Indices (but not DJIA, NASDAQ & S&P 500)What are economic sectors and market subsections are included?
Translating foreign subsidiary income statements : When translating foreign subsidiary income statements using the current rate method why are some accounts translated at an average rate?
Extrinsic values to improve decision making : Compare and contrast intrinsic and instrumental values. Provide at least two examples how each is crucial to good ethical reasoning. Recommend ways to use intrinsic and extrinsic values to improve decision making.
Amount of cash received from the sale : If $4,000,000 of 12% bonds are issued at 101, the amount of cash received from the sale is:

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the dividend yield

Suppose you expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of next three years. You believe the stock will sell for $20 at the end of third year

  Fundamentals of financial accounting

Using the financial statements of Landry's Restaurants located in Appendix A of the text, Fundamentals of Financial Accounting 1st ed., by Phillips, Libby, and Libby, calculate the given ratios for 2002 and 2003:

  Find effective annual rate under the line of credit

Cumberland Furniture wants to establish a prearranged borrowing contract with a local commercial bank. The bank's terms for a line of credit are 3.30 percent over the prime rate, & each year the borrowing must be decreased to zero for a 30-day period..

  Show what was the return on his portfolio

During the year Lightco returns 10 percent, shineco returns 12 percent, and brightco loses 5 percent. what was the return on his portfolio?

  What is its annual loan payment

jackson electricals has borrowed 27,850 from its bank at an annual rate of 8.5%. It plans to repay the loan in eight equal installments, beginning in a year. what is its annual loan payment?

  Detailed explanation to annuity

You've the option of extending your annuity another 10 years. If you pay more money today, you can continue to recieve $1,500 per year for another 10 years.

  Calculate maximum price for a non-constant growth stock

Calculate maximum price that you would be willing to pay for a non-constant growth stock that has the following characteristics;

  Acquisitions-verizon wireless

Looking at recent acquisitions of Verizon Wireless, find out two acquisitions to answer the following questions about each acquisition. What is the reason for acquisition that was employed as the logic by your firm in justifying the acquisition? De..

  True or false question based on investment plan

Senior management of Baldwin meets to estimate their investment plan for the year. They decide to fully fund a plant and machine buy through issuing 50,000 shares of stock plus a new bond issue.

  Firms earnings per share

Being company's stock has PE ratio of 17.12 and pays $1.94 in dividends per share. What is firm's earnings per share (EPS)?

  Employee surveillance - provide a justification

Suggest at least three methods for an employer to monitor its employees’ use of company equipments. Provide a justification for your response

  How the imputation tax system works in australia

Briefly explain how the imputation tax system works in Australia by providing an example. Assume a 30% corporate tax rate and a 15% marginal tax rate for the investor.

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