Homework Answers
Add Answer to:
6. A financial advisor is trying to convince you to purchase a 20 year, $25,000 per...
Present Value of Annuity Due 7. After consulting with your financial advisor, you figured that you...
Present Value of Annuity Due 7. After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the beginning of every year. Assuming a rate of return of 5%, how much do you need today to buy the ordinary annuity contract? a. $1,308,532 8. After consulting with your financial advisor, you figured that you need $100,000...
You are the beneficiary of a trust that pays you $25,000 per year for the next...
You are the beneficiary of a trust that pays you $25,000 per year for the next 15 years and assumes a 7.5% required rate of return. Use this information to answer the following questions using Excel formulas in the space provided. pmt $25,000 Present Value for Ordinary Annuity per 15 Present Value for Annuity Due rate 7.50% Future Value for Ordinary Annuity fv $652,959 Future Value for Annuity Due If the interest rate is quoted and compounds monthly, what are...
Present Value of Ordinary Annuity 4. After consulting with your financial advisor, you figured that you...
Present Value of Ordinary Annuity 4. After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the end of every year. Assuming a rate of return of 5%, how much do you need today to buy the ordinary annuity contract? a. $1,246,221 5. After consulting with your financial advisor, you figured that you need $100,000...
Suppose you are going to receive $11,000 per year for 6 years. The appropriate interest rate...
Suppose you are going to receive $11,000 per year for 6 years. The appropriate interest rate is 6 percent. a. What is the present value of the payments if they are in the form of an ordinary annuity? b. What is the present value if the payments are an annuity due c. Suppose you plan to invest the payments for 6 years, what is the future value if the payments are an ordinary annuity? d. Suppose you plan to invest...
Future Value of Ordinary Annuity 16. After consulting with your financial advisor, you figured that you...
Future Value of Ordinary Annuity 16. After consulting with your financial advisor, you figured that you need to invest $10,000 per year to accumulate enough money for your retirement. Assuming a rate of return of 8% and depositing $10,000 at the end of every year in your retirement account, how much will you have after 40 years? a. $2,590,565 17. After consulting with your financial advisor, you figured that you need to invest $10,000 per year to accumulate enough money...
Jenks Company financed the purchase of a machine by paying $37,000 a year for the next...
Jenks Company financed the purchase of a machine by paying $37,000 a year for the next five years, with the first payment due one year from today. The purchase cost of the machine is considered to be the present value of those payments. What was the purchase cost of the machine to Jenks assuming a discount rate of 7%? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final...
Future Value of Annuity Due 19. After consulting with your financial advisor, you figured that you...
Future Value of Annuity Due 19. After consulting with your financial advisor, you figured that you need to invest $10,000 per year to accumulate enough money for your retirement. Assuming a rate of return of 8% and depositing $10,000 at the beginning of every year in your retirement account, how much will you have after 40 years? a. $2,797,810 20. After consulting with your financial advisor, you figured that you need to invest $10,000 per year to accumulate enough money...
You are trying to decide between putting $3000 or $4000 annually for the next 20 years...
You are trying to decide between putting $3000 or $4000 annually for the next 20 years into an investment yielding 7%. What is the difference in the value of investing the extra $1000 for 20 years (ordinary annuity)? What is the future value if the payment is deposited at the beginning of each year (annuity due)?
Future Value of Multiple Annuities Assume that you contribute $220 per month to a retirement plan...
Future Value of Multiple Annuities Assume that you contribute $220 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $320 per month for another 20 years. Given a 7.0 percent interest rate, what is the value of your retirement plan after 40 years? $178,636 $177,600 $629,552 $577,459 Present Value of an Annuity Due If the present value of an ordinary, 3-year annuity is $5,900 and interest rates are 12 percent, what's...
You want to buy a car, and a local bank will lend you $25,000. The loan...
You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly a. What will be the monthly loan payment? Round your answer to the nearest cent. b. What will be the loan's EAR? Round your answer to two decimal places. Finding the required interest rate Your parents will retire in 23 years. They currently...
Present Value of Annuity Due 7. After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the beginning of every year. Assuming a rate of return of 5%, how much do you need today to buy the ordinary annuity contract? a. $1,308,532 8. After consulting with your financial advisor, you figured that you need $100,000...
Present Value of Ordinary Annuity 4. After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the end of every year. Assuming a rate of return of 5%, how much do you need today to buy the ordinary annuity contract? a. $1,246,221 5. After consulting with your financial advisor, you figured that you need $100,000...
Future Value of Ordinary Annuity 16. After consulting with your financial advisor, you figured that you need to invest $10,000 per year to accumulate enough money for your retirement. Assuming a rate of return of 8% and depositing $10,000 at the end of every year in your retirement account, how much will you have after 40 years? a. $2,590,565 17. After consulting with your financial advisor, you figured that you need to invest $10,000 per year to accumulate enough money...
Jenks Company financed the purchase of a machine by paying $37,000 a year for the next five years, with the first payment due one year from today. The purchase cost of the machine is considered to be the present value of those payments. What was the purchase cost of the machine to Jenks assuming a discount rate of 7%? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final...
Future Value of Annuity Due 19. After consulting with your financial advisor, you figured that you need to invest $10,000 per year to accumulate enough money for your retirement. Assuming a rate of return of 8% and depositing $10,000 at the beginning of every year in your retirement account, how much will you have after 40 years? a. $2,797,810 20. After consulting with your financial advisor, you figured that you need to invest $10,000 per year to accumulate enough money...
You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly a. What will be the monthly loan payment? Round your answer to the nearest cent. b. What will be the loan's EAR? Round your answer to two decimal places. Finding the required interest rate Your parents will retire in 23 years. They currently...
Most questions answered within 3 hours.
-
Let C = (2.25 m, 15 ∘ above the negative x-axis) and D = (30.6
m,...
asked 17 minutes ago -
How are the concepts of microevolution and macroevolution
linked?
asked 1 minute ago -
Use the following information to answer the question:
Coupon Rate = 6% Face Value = $1,000...
asked 12 minutes ago -
Two vectors, given in unit vector notation, are A = 5i + 4j + 3k
and...
asked 4 minutes ago -
Based on the assigned readings, complete this sentence: “Mutual
respect and understanding are built one _____...
asked 4 minutes ago -
complete the problem and solution paragraph below, include 2-3
causes and 2-3 solutions for them.
remember...
asked 25 minutes ago -
Find the magnetic field (in cylindrical coordinates) both inside
and outside of a very long cylindrical...
asked 9 minutes ago -
of the following statements below is/are an example of a
normative statement?
I. The water shortage...
asked 18 minutes ago -
Carbon disulfide is prepared by heating sulfur and charcoal. The
chemical equation is
S2(g)+C(s)−⇀↽−CS2(g) Kc=9.40 at...
asked 23 minutes ago -
I was looking for help with a computer science c programming
class. not c++
This program...
asked 49 minutes ago -
Albinism is an autosomal recessive condition characterized by
absence of melanin pigment from the skin, eye...
asked 39 minutes ago -
Suppose you're looking at a physics example online, and come
across this expression in the middle...
asked 47 minutes ago