What is the value of an investment that will pay investors

Assignment Help Business Economics

Reference no: EM131011386

What is the value of an investment that will pay investors 2,980 dollars per year for 7 years and will also pay investors an additional 4,970 dollars in 1 year(s) from today if the expected return for the investment is 7.45 percent per year and the first annual payment of 2,980 dollars will be paid to investors in exactly one year from today?

Reference no: EM131011386

Questions Cloud

Wealthy professor would like to live in golfing community : Your wealthy professor would like to live in a golfing community. A house is for sale in Greenbryer. The purchase price is $899,900. Assume that your professor is willing to pay the full asking price. The bank loves to make loans to professors and ha..

Calculate the variance of portfolio returns : Hyacinth Macaw invests 62% of her funds in stock I and the balance in stock J. The standard deviation of returns on I is 14%, and on J it is 26%. a. Calculate the variance of portfolio returns, assuming the correlation between the returns is 1.0. (Do..

Flora accounting services completed these transactions : Prepare General journal (using a talbe with professional terms for debit/credit entries such as Cash, Account Receivable or Payable) to record the above transactions.

What is the quarterly interest rate on the loan : Celeste just borrowed 44,400 dollars. She plans to repay this loan by making equal quarterly payments of 2,730.19 dollars for 25 quarters. If she makes her first quarterly payment later today, then what is the quarterly interest rate on the loan? Ans..

What is the value of an investment that will pay investors : What is the value of an investment that will pay investors 2,980 dollars per year for 7 years and will also pay investors an additional 4,970 dollars in 1 year(s) from today if the expected return for the investment is 7.45 percent per year and the f..

About investors expectations of future interest rates : If the risk free yield curve is inverted (long term risk free interest rates are lower than short term risk free interest rates), what is this likely to imply about investor’s expectations of future interest rates?

Accounts payable increase spontaneously with sales : Calculating EFN The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2012 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. ..

What needs improvement and how to improve : Summary assessment of results (what did company do right/wrong, what needs improvement and how to improve)

Decided to refinance the remaining loan balance : Madeline and Nick took out a 30year mortgage for $160,000 at 9.8% interest compounded monthly. After they had made 12 years of payments, they decided to refinance the remaining loan balance for 25 years at 7.2% interest, compounded

User Account

All Pages