What is the present value of the same annuity due

Assignment Help Financial Management

Reference no: EM131870454

1. Present Value of an Annuity Due If the present value of an ordinary, 5-year annuity is $5,900 and interest rates are 10 percent, what's the present value of the same annuity due?

$5,900

$5,990

$6,490

$5,400

2. Present Value of a Perpetuity A perpetuity pays $160 per year and interest rates are 6.6 percent. How much would its value change if interest rates increased to 9.1 percent?

$666.00 increase

$666.00 decrease

$400.00 decrease

$400.00 increase

Reference no: EM131870454

Questions Cloud

Evaluate strategies to resolve the problems : Evaluate strategies to resolve the problems; include a table format representation of pros and cons of labor unions at walmart?

What effect does this transaction have on net income : What effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders' equity

Future value and future value of an annuity : Future Value of an Annuity What is the future value of a $1,200 annuity payment over 10 years if the interest rates are 8 percent?

What is amortization expense : What is amortization expense during 2013 and the book value of the point on December 21, 2012 Devo borrows at 6%

What is the present value of the same annuity due : Present Value of an Annuity Due If the present value of an ordinary, what's the present value of the same annuity due?

Discuss different types of goal planning : You are employed as a manager of global accounts for a multinational pharmaceutical organization. Your organization works primarily within the United States.

Drawn at random from two different industries : A same of 4 workers was drawn at random from two different industries, with their average annual income (in SOO) recorded, as.

What was the behavior change theory : What was the behavior change theory that was used for this study? Why was this theory selected? Do you think it was the best choice for this study design

What is depreciation expense : On July 1 2012 Daveco purchases a new power hammer for $25,000. What is depreciation expense for 2012 and 2013 under each of following methods - Activity method

User Account

All Pages