Interest rates are currently 10%. Calculate the present value of an investment that pays $1,200 a year forever with the first payment starting exactly 5 years from today.
7,451.06 |
||
8,196.16 |
||
8,210.10 |
||
9,025.45 |
||
12,000.00 |
Interest rates are currently 10%. Calculate the present value of an investment that pays $1,200 a...
If the market interest rate is 5 percent, what is the present discounted value of a financial instrument that pays you $50 per year, forever, starting next year, with the exception of year 17. I.e. it pays you $50 every year except for the payment 17 years from today, which is zero.
Problem 5-10 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are 75 percent of a $215 payment made every year forever? (Round your answer decimal places.) Present value
Saved Problem 5-10 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are 8.5 percent, of a $240 payment made every year forever? (Round your answer to 2 decimal places.) Present value
1. 18 pts] For this question, suppose the market interest rate is 4 percent, and round all answers to the nearest $1. a) What is the present discounted value of a perpetuity paying $100 per year, every year, with the first payment coming one year from today? b) What is the present discounted value of a perpetuity paying $100 per year, every year, with the first payment coming 6 years from today? c) What is the present discounted value of...
John is looking at several options to fund his son’s 4-year university degree. The university fees of $45,000 a year will have be paid starting 11 years from today. He is analysing an insurance plan that pays out $45,000 a year for 4 years with the first payout 11 years from today. The insurance plan has several payment options: Option 1 Pay $60,000 today. Option 2 Beginning 1 year from today, pay $12,000 a year for the next 8 years. Option 3 Beginning...
With a 6% interest rate, calculate the present value of the following streams of cashflow $160 per year forever, with the first payment three (3) years from now
John is looking at several options to fund his son’s 4-year university degree. The university fees of $45,000 a year will have be paid starting 11 years from today. He is analysing an insurance plan that pays out $45,000 a year for 4 years with the first payout 11 years from today. The insurance plan has several payment options: Option 1 Pay $60,000 today. Option 2 Beginning 1 year from today, pay $12,000 a year for the next 8 years. Option 3 Beginning...
Present Value of a Perpetuity What's the present value, when interest rates are 6.70 percent, of a $270 payment made every year forever? 4,029.85 18.09 2,700.00 1,809.00
What is the present value of an investment that pays $100 every other year forever when the first cash flow occurs in one year? What is the value if the first cash flow occurs in two years? The opportunity cost of capital is 16% per year.
Suppose the term structure of risk-free interest rates is as shown below: Term1 yr2 yr3 yr5 yr7 yr10 yr20 yrRate (EAR %)2.092.412.693.383.734.284.97a. Calculate the present value of an investment that pays $1,000 in two years and $4,000 in five years for certain.b. Calculate the present value of receiving $600 per year, with certainty, at the end of the next five years. To find the rates for the missing years in the table, linearly interpolate between the years for which you do know the rates. (For example,...