What is the present value of your investment

Assignment Help Finance Basics

Reference no: EM13284129

What is the relationship between the value of an annuity and the level of interst rates? Suppose you just bought a 10-year annuity of $10,000 per year at the current interest rate of 3 percent per year.

a. What is the present value of your investment?
b. What is the present value of your investment if interst rates suddenly increased to 5 percent?
c. Why does a change in interst rates cause the value of your annuity to change?

Reference no: EM13284129

Questions Cloud

Calculate the charge density of the air : In fair weather, over flat ground, there may be a downward electric field of 155 N/C. Calculate the charge density of the air

Explain a volume of 300 ml please explain which : What would you need to use to prepare 300 ml of 0.500M K2Cr2O7 adding 30 ml of 1.50m K2Cr2O7 to 270 ml of H2O or dilute 250 ml of 0.600 m K2Cr2O7 to a volume of 300 ml please help explain which

What is the lifting force acting on the jet : a 600 ton Boeing business jet is flying at 500 mph at a constant altitude of 35,00 ft. what is the lifting force acting on the jet provided by the air

What is the total resistance force action on the jet : A 500 ton jet is flying at an altitude of 30,000ft with a constant speed of 520mph. what is the total resistance force action on the jet

What is the present value of your investment : What is the relationship between the value of an annuity and the level of interst rates? Suppose you just bought a 10-year annuity of $10,000 per year at the current interest rate of 3 percent per year.

What is the magnitude of the charge on each object : Two small objects are hung, from a point, on strings 50 cm long. they each have mass .06 grams and are given equal charge, What is the magnitude of the charge on each object

Explain what mass of h2c2o2 is required to prepare solution : What mass of H2C2O2 is required to prepare 250 mL of a 0.15 M H2C2O4 solution

What is the probability that you will run out of stock : Daily demand is distributed normally with mean = 250 and standard deviation =.50. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.

What is the service rate : Using Sally's estimate of demand that follows, how many T-shirts should she produce for the upcoming event?

User Account

All Pages