Your grandmother will be gifting you $150 at the end of each month for four years...
Your grandmother will be gifting you $150 at the end of each month for four years while you attend college. At a discount rate of 3.7 percent, what are these payments worth to you on the day you enter college?
Homework Answers
These payments are worth to you on the day you enter college $ 6,682.99
| Present value | = | Monthly payment | * | Present value of annuity of 1 | ||||
| = | $ 150 | * | 44.55324 | |||||
| = | $ 6,682.99 | |||||||
| Working: | ||||||||
| Present value of annuity of 1 | = | (1-(1+i)^-n)/i | Where, | |||||
| = | 44.553239 | i | = | 3.7%/12 | = | 0.003083 | ||
| n | = | 4*12 | = | 48 | ||||
Add Answer to:
Your grandmother will be gifting you $150 at the end of each
month for four years...
Your grandmother is gifting you $100 a month for four years while you attend college to...
Your grandmother is gifting you $100 a month for four years while you attend college to earn your bachelor's degree. At a 5.3 percent discount rate, what are these payments worth to you on the day you enter college?
CH6 Your grandfather is gifting you $250 a month for four years while you attend college....
CH6 Your grandfather is gifting you $250 a month for four years while you attend college. If you discount those payments at 0.4% a month , what are these payments worth to you on the day you enter college? Group of answer choices 10,898.56 $10,201.19 $10,308.87 $9,870.67
24. Your grandmother is gifting you $125 a month for four years while you attend college...
24. Your grandmother is gifting you $125 a month for four years while you attend college to earn your bachelor's degree. At a 6.5 percent discount rate, what are these payments worth to you on the day you enter college? A. SS 201.16 B. 58.270.94 C. 55,509.19 D. 55,608.87 25. At 8 percent interest, how long would it take to quadruple your money? A 16.95 1664 C 1709 D. 18.01 26. You are considering two loans. The terms of the...
Your parents are giving you $250 a month for four years while you are in college....
Your parents are giving you $250 a month for four years while you are in college. At an interest rate of 0.57 percent per month, what are these payments worth to you when you first start college?
You estimate that you will owe $45,300 in student loans by the time you graduate. The...
You estimate that you will owe $45,300 in student loans by the time you graduate. The interest rate is 4.25 percent. If you want to have this debt paid in full within ten years, how much must you pay each month? Your insurance agent is trying to sell you an annuity that costs $230,000 today. By buying this annuity, your agent promises that you will receive payments of $1,225 a month for the next 30 years. What is the rate...
Please post all the work, so I can understand the process :) -Nick got a $125...
Please post all the work, so I can understand the process :) -Nick got a $125 a month for four years while attending college to earn his undergraduate degree. At a 6.5 percent discount rate, what were these payments worth to him on the day he started college. A. $5,201.16 B. $5,270.94 C. $5,509.19 D. $5,608.87 E. $5,800.00
1. Your grandmother has invested $4000 in a mutual fund each year on your birthday (she...
1. Your grandmother has invested $4000 in a mutual fund each year on your birthday (she made her first payment when you turned 1 year old). The mutual fund has grown at an annual interest rate of 6.8%. How much is your account worth on the day of your 21st birthday immediately after your grandmother’s deposit? answer: 2. You set up a college fund in which you pay $4000 each year at the beginning of the year. How much money...
1. (a) You are offered an annuity that pays $200 at the end of each month, starting at the end of the current month and...
1. (a) You are offered an annuity that pays $200 at the end of each month, starting at the end of the current month and lasting for four years. The annual interest rate is 3.2% compounded monthly. What is the present value of this annuity? (b) Suppose you need the payments from question 1a to occur at the start of each month. What is the new present value? (c) A third annuity has the same payment schedule and interest rate...
5) During your four years at college, you decide to work at part-time jobs and put...
5) During your four years at college, you decide to work at part-time jobs and put your earnings into an account to save for a one-year trip around the world after graduation. In your freshman and sophomore years (for the first two years), you are able to deposit $500 at the end of every three month into this account. In the junior and senior years (last two years). you are able to deposit $500 at the end of every month....
You will receive annual payments of $4,000 at the end of each year for ten years...
You will receive annual payments of $4,000 at the end of each year for ten years (10 payments). The first payment will be received in year 3. What is the present value (t-0) of these payments if the discount rate is 9 percent.
24. Your grandmother is gifting you $125 a month for four years while you attend college to earn your bachelor's degree. At a 6.5 percent discount rate, what are these payments worth to you on the day you enter college? A. SS 201.16 B. 58.270.94 C. 55,509.19 D. 55,608.87 25. At 8 percent interest, how long would it take to quadruple your money? A 16.95 1664 C 1709 D. 18.01 26. You are considering two loans. The terms of the...
5) During your four years at college, you decide to work at part-time jobs and put your earnings into an account to save for a one-year trip around the world after graduation. In your freshman and sophomore years (for the first two years), you are able to deposit $500 at the end of every three month into this account. In the junior and senior years (last two years). you are able to deposit $500 at the end of every month....
You will receive annual payments of $4,000 at the end of each year for ten years (10 payments). The first payment will be received in year 3. What is the present value (t-0) of these payments if the discount rate is 9 percent.
Most questions answered within 3 hours.
-
How much must I invest today if I want to withdraw 1/3 of my
original investment...
asked 13 minutes ago -
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 1 hour ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 2 hours ago -
the
total pressure for a mixture of N2O4 and NO2 is 2.20 atm. If Kp=
7.10...
asked 2 hours ago -
Delaware Corp. prepared a master budget that included $22,385
for direct materials, $28,600 for direct labor,...
asked 2 hours ago -
For pesticide HCB (hexachlorobenzene), its logarithmic partition
coefficient log Kow is 5.6. What would be the...
asked 2 hours ago -
A chemist requires 0.422 mil Na2CO3 for a reaction. How many
grams does this correspond to?
asked 2 hours ago -
If the vapor pressure of carvone is approximately 9.4 torr at 99
°C, approximately how much...
asked 2 hours ago -
A juice bottling company is carrying out a test at 10%
significance that the mean population...
asked 2 hours ago -
What is the reflectivity (in percent) needed to keep water at a
temperature near its freezing...
asked 3 hours ago -
Suppose that the average surface temperature of Earth is 300K.
Assume this is uniform over its...
asked 3 hours ago -
Draw the condensed structural formula for alkenes and alkynes or
the line-angle structural formula for cycloalkenes...
asked 3 hours ago