present value today of future cash flows= annual inflows to be received / discounting rate = 177 / 6.6% = 2681.82
next year you will begin receiving $177 per year in perpetuity from a family trust fund...
next year you will begin receiving $189 per year in perpetuity from a family trust fund (first payment is exactly 1 year from today) you have decided to discount these cash flows at a constant interest rate of 6.9%. what is the present value today of these future cash flows?
in 10 years yiu will begin receiving $184 per year in perpetuity from a family trust fund (first payment is exactly 10 years from today) you have decided to discount these cash flows at a constant interest rate of 5.9%. what is the present value today of these future cash flows?
in 8 years you will begin receiving $167 per year in perpetuity from a family trust (first payment is exactly 8 years from today). you have decided to discount these cash flows at a constant interest rate of 6.3%. what is the present value today of these future cash flows?
Your family trust starts to provide you 5 constant annual payments of 10,000 with first payment due today. After the 5 payments, you will receive 5,000 annually in perpetuity. What’s the present value of all payments you will receive from your family trust with an appropriate discount rate of 10% p.a? a. 72,058.54 b. 72,744.72 c. 75,849.33 d. 65,849.33
In 4 years, you will start receiving monthly payments of $950 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 4 and the payments will last for 27 years. You plan to deposit the money you receive every month into a special account right away that pays 6.10% APR with quarterly compounding. Today the account mentioned above has a balance of $20000. Assuming...
Question 5 [4 points] Suppose the interest rate is 5%. You inherit a trust (a perpetuity) that will eventually pay you $10,000 a year forever. You will receive the first $10,000 payment exactly three years from today. What is the trust worth at the moment you start collecting payments (i.e. in three years from today) [1 point] What is the trust worth today? [1.5 points] A bank offers to exchange your trust for another stream of yearly payments that also...
Question 5 [4 points] Suppose the interest rate is 5%. You inherit a trust (a perpetuity) that will eventually pay you $10,000 a year forever. You will receive the first $10,000 payment exactly three years from today. a. What is the trust worth at the moment you start collecting payments (i.e. in three years from today) (1 point] b. What is the trust worth today? (1.5 points c. A bank offers to exchange your trust for another stream of yearly...
1. What is the value today of receiving $2,422.00 per year forever? Assume the first payment is made next year and the discount rate is 12.00%. 2. What is the value today of receiving $1,429.00 per year forever? Assume the first payment is made 6.00 years from today and the discount rate is 4.00%. 3. If you are willing to pay $42,377.00 today to receive $4,353.00 per year forever then your required rate of return must be ____%. Assume the...
Amanda will receive a $20 000 annual payment from a family trust fund. This will continue until she reached age 40. She is currently 25 years old and will receive one payment per a year. Inflation is 5% and the interest rate of the trust fund is 6% compounded monthly. What is the value of the trust fund today?
Suppose you inherit a perpetuity that will pay you $10,000 a year for the rest of your life. You will receive the first $10,000 payment exactly three years from today. The interest rate is 5%. What is the perpetuity worth at the moment you start collecting payments (three years from now) What is the perpetuity worth now? A bank offers to exchange your perpetuity for another stream of yearly payments that also lasts forever but whose first payment will be made...