A rich aunt has promised you $2,000 one year from today. In addition, each year after...
A rich aunt has promised you $2,000 one year from today. In addition, each year after that she has promised you a payment on the anniversary of the last payment that is the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments the interest rate is 4%, what is her promise worth today? The present value of the aunt's promise is $ (Round to the nearest dollar) larger the Enter your...
A rich aunt has promised you $6,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 20 years, g ng a total of 20 payments if the interest rate is 7%, what is her promise worth today? The present value of the aunt's promise is $(Round to the nearest dollar.)
A rich aunt has promised you $5,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 7% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 7%, what is her promise worth today?
A nch aunt has promised you $3.660.00, one year from today. In addition, each year after that she has promised a payment on the anniversary of the last payment that is 400% larger than the last payment. She wil continue to show this generosity for 25 years, g ing a total of 25 payments if the interest rate is 8 00%, what s her prom se worth totaf? Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here.. Submit...
You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 5 $1,000, what is the payment every year? The payment at the end of each year is $ (Round to the nearest dollar.)
You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 5 $1,000, what is the payment every year? The payment at the end of each year is $ . (Round to the nearest dollar.)
Your rich aunt is going to give you an end-of-year gift of $1,100 for each of the next 10 years. a. If general price inflation is expected to average 6% per year during the next 10 years, what is the equivalent value of these gifts at the present time? The real interest rate is 5% per year. b. Suppose that your aunt specified that the annual gifts of $1,100 are to be increased by 6% each year to keep pace...
You have $500,000 to donate to your college. You want to endow a perpetual scholarship that makes its first payment in one year. If the college's discount rate is 6%, how large will the annual scholarship payment be? The annual scholarship payment will be $ . (Round to the nearest dollar.) You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 5%. If the...
Multiple Choices (15x3-45 points) 1. In the event of the firm's bankruptcy: ost shareholders can lose is their original investment in the firm's stock olders have claim to what is left from the liquidation of the firm's assets after paying the C) The claims of prefered shareholders are honored before those of the common shareholders shareholders. (D) A and C 9% and a par value of $1,000. If the bond matures in 8 14 2. A zero-coupon bond has a...
i Question Help * P 4-34 (similar to) You have decided to buy a perpetual bond. The bond makes one payment at the end o every year forever and has an interest rate o 8%. If the bond in The payment at the end of each year is S(Round to the nearest dollar) aly costs S3 000 what is the payment every year?