As part of your employee benefits package, you are offered an annuity that will pay $14,000 per year for 9 years (the first payment will occur two years from today). If the appropriate interest rate is 11%,
a) What is the annuity worth to you today?
b) What is the annuity worth at the end of the 9 years
We will use the present value of the annuity formula for calculating the annuity worth today and at the end of 9th year.
As part of your employee benefits package, you are offered an annuity that will pay $14,000...
11-16 I need help quick 9. You are offered an annuity that will pay $24,000 per year for 11 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today? AnnPay - 24,000 DR = 13 S 134PMT -24,00 world tried It Yrs 86-59 CK NO 1 FV-O Current value of annuity in 136,486.59 10. If you deposit $16,000 per year for 12...
You are offered an annuity that will pay $23,000 per year for 9 years (the first payment will be made today). If you feel that the appropriate discount rate is 10%, what is the annuity worth to you today? $312,327.97 $145,703.30 $132,457.55 $343,560.77 $259,008.08
9. You are offered an investment with a quoted annual interest rate of 6.75% with quarterly compounding of interest. What is your effective annual interest rate? 10. You are offered an annuity that will pay $15,000 per year for 20 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 3%, what is the annuity worth to you today? 11. If you deposit $6,500 per year (each deposit is made at...
New Jersey Mutual has offered you a single premium annuity that will pay you $12,000 per year (end of year) for the next 15 years. If you must pay $109,296 today for this annuity, what is your expected rate of return? Please show work
Calculate all of the problems in the document below in an Excel spreadsheet or on a financial calculator. Please show your work in order to get credit. For each problem, state the inputs given, what you are being asked to find (the missing input), and then use the Finance function to get the correct answer (if using Excel). 1. If you wish to accumulate $100,000 in 5 years, how much must you deposit today in an account that pays an...
John Roberts is offered an incentive package if he retires after 5 years. After retirement, the incentive package will pay him an additional $20,000 at the end of each year for the following 20 years. Assume that the relevant interest rate is 12%, compounded annually, how much is the incentive package worth today?
NEED SOLUTION BY HAND NOT EXCEL You are considering the purchase of a delayed annuity. The annuity will pay you $200 per year for 15 years, but you will not receive the first payment one year from now--the first payment will be received 6 years from now. If the interest rate is 9%, what is the most you would pay for the delayed annuity today? Round your answer to 2 decimal places, for example 100.12.
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Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $92,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment?
Someone has offered to buy you a financial instrument that has the following cash flows: - You will not receive any cash for the first 7 years. The first time you will receive a cash low will be at the year 10 end of year 8. You will receive $100 at the end of year 8, $200 at the end of year 9, and $300 at the end of - You will receive another payment of $200 at the end...