Present value of an ordinary annuity: An investment opportunity requires a payment of $750 for 12...
Present value of an ordinary annuity: An investment opportunity
requires a payment of
$750 for 12 years, starting a year from today. If your required
rate of return is 8 percent, what is the
value of the investment to you today?
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Present value of an ordinary annuity: An investment opportunity
requires a payment of
$750 for 12...
An investment opportunity requires a payment of $990 for 12 years, starting a year from today....
An investment opportunity requires a payment of $990 for 12 years, starting a year from today. If your required rate of return is 10.0 percent, what is the value of the investment to you today? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Present value of investment $
What is the present value of a 17 year ordinary annuity with an annual payment of...
What is the present value of a 17 year ordinary annuity with an annual payment of $216,000 if the opportunity cost rate is 15.2%? An ordinary annuity pays $16,375 per year for 9 years. If you pay $100,000 for this annuity now, what rate of return (interest rate) will you earn? A 22 year ordinary annuity has a present value of $28,520. If the interest rate on this annuity is 12%, what is the amount of each payment?...
What is the future value of an 8 year ordinary annuity with an annual payment of...
What is the future value of an 8 year ordinary annuity with an annual payment of $600 if the interest rate is 13.5%? What is the present value of a 17 year ordinary annuity with an annual payment of $216,000 if the opportunity cost rate is 15.2%? An ordinary annuity pays $16,375 per year for 9 years. If you pay $100,000 for this annuity now, what rate of return (interest rate) will you earn? A 22 year...
D G H L 6.1. Future value with multiple cash flows: Konerko, Inc., expects to earn...
D G H L 6.1. Future value with multiple cash flows: Konerko, Inc., expects to earn cash flows of $13,227, $15,611, 518,970, and $19,114 over the next four years. If the company uses an 8 percent discount rate, what is the future value of these cash flows at the end of year 4? 6.4. Present value with multiple cash flows: Saul Cervantes has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts...
Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your...
Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value of the Annuity $3,000 every year 20 4 annually $ Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value...
(a) What are the relationships of the present value and future value calculation of ordinary annuity...
(a) What are the relationships of the present value and future value calculation of ordinary annuity and annuity due? (b) Suppose you would like to buy a car using a loan that requires an annual payment of $1,000 for 20 years at the end of each year. If the annual interest rate is 3%, what are the present value of this car? What is the Excel function used for this calculation? What would the present value be if the loan...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six mońths O An annuity that pays $1,000 at the...
Problem 5-12 Present Value of an Annuity Due (LG5-6) If the present value of an ordinary,...
Problem 5-12 Present Value of an Annuity Due (LG5-6) If the present value of an ordinary, 8-year annuity is $8,900 and interest rates are 10.0 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value
What is the Present Value of an ORDINARY ANNUITY that has 12 annual payments of 3000...
What is the Present Value of an ORDINARY ANNUITY that has 12 annual payments of 3000 if the return is 12 % What is the Present Value of a monthly annuity that pays $ 250 per year for 10 years when investments make 9 % return annually. Find the future value of 250,000 invested for 10 years at 12%. Find the Future value of an annuity due of 450 per month for 3 years when returns are 10 % annually,
1. What is the Present Value of an ORDINARY ANNUITY that has 12 annual payments of...
1. What is the Present Value of an ORDINARY ANNUITY that has 12 annual payments of 3000 if the return is 12 % 2. What is the Present Value of a monthly annuity that pays $ 250 per year for 10 years when investments make 9 % return annually. 3. Find the future value of 250,000 invested for 10 years at 12%. 4. Find the Future value of an annuity due of 450 per month for 3 years when returns...
An investment opportunity requires a payment of $990 for 12 years, starting a year from today. If your required rate of return is 10.0 percent, what is the value of the investment to you today? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Present value of investment $
D G H L 6.1. Future value with multiple cash flows: Konerko, Inc., expects to earn cash flows of $13,227, $15,611, 518,970, and $19,114 over the next four years. If the company uses an 8 percent discount rate, what is the future value of these cash flows at the end of year 4? 6.4. Present value with multiple cash flows: Saul Cervantes has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six mońths O An annuity that pays $1,000 at the...
Problem 5-12 Present Value of an Annuity Due (LG5-6) If the present value of an ordinary, 8-year annuity is $8,900 and interest rates are 10.0 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value
1. What is the Present Value of an ORDINARY ANNUITY that has 12 annual payments of 3000 if the return is 12 % 2. What is the Present Value of a monthly annuity that pays $ 250 per year for 10 years when investments make 9 % return annually. 3. Find the future value of 250,000 invested for 10 years at 12%. 4. Find the Future value of an annuity due of 450 per month for 3 years when returns...
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