6. Value of these cashflows (at t=9) =
Therefore, present value of this perpetuity =
All the given options are incorrect.
I can only answer 1 question at a time so I am solving question 6. Please do rate me and mention doubts in the comments section.
6. You are the beneficiary of a trust set up by your grandparents. You will receive...
You are the beneficiary of a trust set up by your grandparents. You will receive your first $2,000 cash ten years from now (T=10) when you turn age 30. To cover the cost of inflation, these cash flows will grow at 3.0% per year in perpetuity. Assume the appropriate discount rate is 5.0% per annum. What is the present value of this perpetuity today (T=0)? 6. a. $29,764 b. $30,657 c. $72,242 d. $74,409 e. $76,642 Today is January 1",...
Today is January 1, 2020 (T=0). You take out a 30 year fully amortizing mortgage of $400,000. Payments are made at the end of each calendar month. The loan has a fixed annual rate of 4.0% (or 4.0%/12 per month). How payments will you have to make until you have at least $300,000 of equity in your home? a. 32 b. 33 c. 109 d. 110 e. 111
Carl is the beneficiary of a $21,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive the money over a 5-year period in equal installments at the end of each year. If the fund earns interest at the rate of 2%/year compounded annually, what amount will he receive each year? (Round your answer to the nearest cent.) $
your grandparents would like to establish a trust fund that will pay you and your heirs 145000 per year forever with the first payment one year from today. if the trust fund earns an annual return of 2.8 percent how much must your grandparents deposit today
Your grandparents would like to establish a trust fund that will pay you and your heirs $170,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.3 percent, how much must your grandparents deposit today? Multiple Choice O $5,887,445.89 54292,929.29 C) $4755,244.76 54,507,575.76
Your grandparents would like to establish a trust fund that will pay you and your heirs $160,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.1 percent, how much must your grandparents deposit today?
Today is January 19, 2020. You take out a $300,000 mortgage with a 5% annual fixed interest rate. The mortgage is a fully amortizing loan that requires you to make payments at the end of each month for the next 20 years. Your first payment is due January 31", 2020. 9. Your monthly mortgage payment is closest to: a) $1,250 b) $1,972 c) $1,980 d) $1,988 e) $15,000 10. On what date will you finally have half of your home...
Today is January 1st, 2019 (T=0). You take out a 6 year fully amortizing auto loan of $24,000. Payments are made at the end of each calendar month. The loan has a fixed annual rate of 4.0% (or 4.0%/12 per month). Assume you decide to make monthly payments of $503.50 instead. Approximately how many months sooner would you pay off the auto loan? 1.) 18 2.) 20 3.) 22 4.) 24 5.) 48
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
Your crazy uncle left you a trust that will pay you $39,000 per year for the next 30 years with the first payment received one year from today. If the appropriate interest rate is 7.2 percent, what is the value of the payments today?