What is the value of this annuity five years from now

Assignment Help Business Economics

Reference no: EM13978819

A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. a) If the discount rate is 14 percent compounded monthly, what is the value of this annuity five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b) If the discount rate is 14 percent compounded monthly, what is the value three years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c) If the discount rate is 14 percent compounded monthly, what is the current value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM13978819

Questions Cloud

Barriers to accessing healthcare : Barriers to Accessing Healthcare - List at least three nonfinancial barriers to accessing healthcare in the U.S. and suggest healthcare policies that could be adopted to overcome the barriers. Justify using examples

The return of the stock account is expected : You are planning to save for retirement over the next 35 years. To do this, you will invest $840 per month in a stock account and $440 per month in a bond account. The return of the stock account is expected to be 10.4 percent, and the bond account w..

Is this argument correct or not : The state of Wisconsin argues that the constitutional provision should prevail over the statute because constitutions are a higher, more authoritative kind of law than statutes. Is this argument correct? Why or why not?

At what rate is the top surface of the water rising : At what rate is the top surface of the water rising when its height above the bottom of the bowl is 3 feet? 4 feet? 5 feet?

What is the value of this annuity five years from now : A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. a) If the discount rate is 14 percent compounded monthly, what is the value of this annuity five years from now? If th..

Constant growth-what is the current stock price : Reco Corp. is expected to pay a dividend of $2.25 next year. The forecast for the stock price a year from now is $37.50. If the required rate of return is 14 percent, what is the current stock price? Assume constant growth.

Review of the theories of cognitive psychology : A brief review of the theories of cognitive psychology and their applications to learning and instruction - how cognitive psychology can mitigate prejudice in the creation of high-stakes academic competency test items.

Short position in six-month forward contract on the stock : A stock is expected to pay a dividend of $1 per share in two months and in five months. The stock price is $50, and the risk-free rate of interest is 8% per annum with continuous compounding for all maturities. An investor has just taken a short posi..

Find the relative change of kinetic energy during collision : Find the speed of mass m1 before the collision. Find the speed of mass m1 and m2 after the collision. Find the relative change of kinetic energy during the collision (DK/Ki).

User Account

All Pages