What is the price of annuity

Assignment Help Finance Basics
Reference no: EM132133095

Leibniz sells you an annuity that pays $1,500 every month from the end of September 2018 to the end of August 2022 with annual interest rate 7% compounded monthly. (round off all answers to two decimal places)

(a) What is the price of this annuity on Sept 1, 2018

(b) What is the price of this annuity on Jan 1, 2019

(c) What is the future value of all the payments at the end of Aug 2022

Reference no: EM132133095

Questions Cloud

What is the standard deviation of this portfolio expressed : The average covariance between the assets is 0.118. What is the standard deviation of this portfolio expressed as a percentage to three decimal places?
What should be the amount of dividend in four years : The dividend is projected to grow at 15% for the next three years, then 6% thereafter indefinitely. What should be the amount of dividend in four years (D4)
Discuss differences between variable and absorption costing : Watch the video then discuss the differences between variable and absorption costing.
Borel wants to be a millionaire when he retires : How much does he have to save each month if he can earn a 10% annual return? (round off all answers to 2 decimal places)
What is the price of annuity : (a) What is the price of this annuity on Sept 1, 2018 (b) What is the price of this annuity on Jan 1, 2019 (c) What is the future value of all the payments at
How long will it take for addico eps to halve : The EPS is expected to decline at the rate of 11 percent per year for the foreseeable future. How long will it take for Addico's EPS to halve?
What is its current value : In the fourth year, the stock price is expected to be $20. If the required return for this stock is 13.5 percent, what is its current value?
Briefly discussed the concept of balanced scorecards : We very briefly discussed the concept of Balanced Scorecards in our lab introduction. Identify at least two metrics for each of the (1) Customer
What is the total amount that she will need to pay : What is the total amount that she will need to pay at the end of year 4? (round off all answers to 2 decimal places)

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the npv break-even level of diamonds

What is the NPV break-even level of diamonds sold per year assuming a tax rate of 40%, a 10-year project life, and a discount rate of 14%?

  Determine the value of aggie

Aggie has a 35% corporate tax rate. Investors face a 20% tax rate on debt receipts and a 15% rate on equity. Determine the value of Aggie.

  What is first payment

The rate is 6%. Repayment is structured as a 20 year, 4% growing annuity. What is your first payment?

  What is the average accounts payable balance

Johnny's Pizza shop has sales of $531,000 and costs of $358,000. The profit margin is 4.8 % and teh accounts payable period is 41 days. What is the average accounts payable balance?

  Amy kazmin in new delhi for financial times

India to act over predatory airline pricing by Amy Kazmin in New Delhi for Financial Times; Published in Nov, 25, 2010.

  What is the internal growth rate

What is the internal growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16). )

  Computing firm''s wacc

Computing firm's WACC and and you were provided with the Following data like Target capital structure

  What is the effect on the value of the portfolio

Suppose you have a $1 million bond portfolio equally weighted between two bonds, one with duration equal to 4 years and the other with the duration equal to 8 years. What is the effect on the value of the portfolio of an increase in bond yields of..

  I you deposit 10000 in a bank account that pays 10

if you deposit 10000 in a bank account that pays 10 interest annually how mch will be in your account after 5

  Compute the approximate annual rate of return on investment

Compute the approximate yearly rate of return on investment of the following cash discount terms, Compute the amount of interest income received by Husemann Corporation.

  The company expects to earn 15 percent before interest and

the calgary company is attempting to establish a current assets policy. fixed assets are 600000 and the firm plans to

  What is the stock''s current market price

X-Centric Energy Company has issued perpetual preferred stock with a stated (par) value of $100 and a dividend of 6.0 percent. If the required rate of return is 12.00 percent, what is the stock's current market price? (Round answer to 2 decimal pl..

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