What should the annuity cost today

Assignment Help Finance Basics
Reference no: EM131994945

Question: Mary's grandmother wants to buy an annuity from Met Life that pays her $1300/month for 10 years. She and Met Life agree on an nominal interest rate of 4.1%. She wants $15,000 left at the end of the 10 years to leave to Mary. What should the annuity cost today? Make your answer positive, with no commas.

Reference no: EM131994945

Questions Cloud

Designate alleles for individual : Designate alleles for each individual, indicating what each allele means. Briefly discuss what type of inheritance pattern this is likely to be.
Describe a progression of changes in corrections : Describe a progression of changes in corrections from The Reformatory Movement (1870s to 1890s) to the Crime Control Model (1970s to Present).
How much money is in the account : Marti deposits $2100 today into an account earning 7.5%, compounded quarterly. How much money is in the account in 24 years? Positive number, no commas.
What is the dollar amount of prepayment in month : What is the dollar amount of prepayment in month 32, servicing fee in month 32, and the starting pool balance for month 33 of this security?
What should the annuity cost today : Mary's grandmother wants to buy an annuity from Met Life that pays her $1300/month for 10 years. She and Met Life agree on an nominal interest rate of 4.1%.
What are the underlying theories you can use to best explain : What are some of the common approaches used by agencies to explain and address the causes of juvenile delinquency?
What is the earnings per share : The tax rate is 34 percent and there are 8,500 shares of stock outstanding. What is the earnings per share?
Milk products because of her lactose intolerance : Lisa decided to have hot cocoa. She cannot drink milk and most milk products because of her lactose intolerance.
Computing the risk free rate of return : The markets in general are paying a 2% real rate of return. Inflation is expected to be 3% ABC stock commands a 6% risk premium.

Reviews

Write a Review

Finance Basics Questions & Answers

  Write disadvantages of international accounting uniformity

Some financial statement users maintain that despite its intrinsic intellectual appeal. Discuss at least three disadvantages of national or international accounting uniformity.

  An entrepreneur tells you that if you invest in his company

an entrepreneur tells you that if you invest in his company he will give you the equivalent of 20 apr for five years.

  What is the firm net float

In addition, the firm generally receives an average of $140,484 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float?

  What is your debt payments-to-income ratio

What factors (including psychological) would you consider in assessing the choices in declaring personal bankruptcy? Why should personal bankruptcy.

  Director of community outreach

Imagine you have been asked to deliver a two part informative workshop at a local health expo by your Director of Community Outreach. Before he approves your workshop, you have to submit a proposal for each workshop that discusses the content you ..

  What is the net income for the firm

Building an Income Statement. Pharrell, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000.

  One has a life of 6 years and the other a life of 10 years

suppose a firm is considering two mutually exclusive projects. one has a life of 6 years and the other a life of 10

  Show decision is irrelevant in world of frictionless market

Show that the decision is irrelevant in a world of frictionless markets. What happens if a personal income tax of 15 percent on dividends (but not capital gains) is introduced into the model?

  The housekeeping departmenent at ricardo clinic a

the housekeeping departmenent at ricardo clinic a multispecialty practice in corpus christi had 152318 in direct costs

  How does each firm recognize revenue

Revenue Recognition and Operating Income - How does each firm recognize revenue and how does its revenue recognition policies compare to its competitors? Is there evidence of aggressive revenue recognition

  Draw the top of the stack

You can consider only return values, parameters, control links, and space for local variables; you do not have to consider stored state or temporary or local values not shown in the code sketch. Answer the following questions:

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